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70-Unit Affordable Housing for South Charlotte; NorthMarq Arranges Financing for Metrolina Apartments

24 Jan 2014, 8:58 pm

By Eliza Theiss, Associate Editor

Woodlands Apartments

Affordable housing could be on its way to South Charlotte, as Charlotte City Council has approved a rezoning request for a 7.23-acre site on Weddington Road, clearing the way for the Charlotte-Mecklenburg Housing Partnership (CMHP) to develop an up to 70-unit subsidized apartment complex, reports the Charlotte business Journal.

The affordable housing development will consist of 70 two- and three-bedroom apartments, 10 percent of which will be low-income housing, available for tenants earning a maximum of 30 percent of the area’s median income level. The remaining 63 units will house tenants earning 60 percent or less of the area median income level, resulting in rents ranging between circa $450 and $965. According to previous Charlotte Business Journal coverage, the two-or three-story building will rise around a courtyard and 54 percent of the site would be kept as green space. A 50-foot tree-line buffer will be implemented between the development and adjacent neighbors. CMHP is working on a preliminary tax credit application to fund the development.

The project site, owned by NewDominion Bank and under contract to the CMHP, was previously zoned for a child-care facility for up to 425. The project faces strong neighborhood opposition due to its affordable nature.

In other multifamily news, NorthMarq Capital’s Charlotte regional office announced arranging a $2,128,000 acquisition financing structured with a seven-year term and 30-year amortization period, facilitated through a Fannie Mae DUS lender. The equity was used in the purchase of the 100-unit Woodlands Apartments located in Statesville, N.C. NorthMarq was recently involved in the refinancing of several Metro Charlotte apartments, including the $10 million refinancing of the 423-unit Ashbrook Village Apartments in Gastonia, N.C., based on a 10-year term and 20-year amortization schedule through NorthMarq’s seller/servicer relationship with Freddie Mac. The same terms apply to the recent $10.66 million refinancing of the Sunset Village Apartments and Forestbrook Apartments, two Charlotte multifamily assets totaling 360 units.

Image courtesy of Northmarq Capital



Luxury Apartments Sell for $59M in Charlotte

13 Jan 2014, 8:18 pm

By Eliza Theiss, Associate Editor

Invesco Real Estate, the real estate branch of global diversified independent investment management firm Invesco, has acquired the 10-acre Junction 1504 apartment community for $59 million, according to the Charlotte Business Journal. Invesco Real Estate made the acquisition through an affiliate, buying the 281-unit South End apartment complex from Dallas-based JLB Partners. The seller was represented by CBRE Group Inc.’s Phil Brosseau.

Located in the highly desirable neighborhood of South End, the property was developed by JLB Partners, breaking ground in November 2011 and opening in April 2013. JLB Builders LLC was general contractor for the high-end residential project.

Amenities include a multi-level clubhouse featuring a spacious entertainment lounge including a TV gallery, Wi-Fi café and serving bar, fully equipped fitness center, resort-style swimming pool, fire pit, grilling areas featuring high-end grilling equipment, controlled access, private one-car garages.  Units include one- and two-bedroom apartments ranging between 770 and 1,083 square feet and are available in seven layouts. Unit amenities include private balconies, stainless steel Energy Star appliances including microwave, refrigerator and dishwasher, gourmet preparation island, granite countertops, oversized soaking tubs and walk-in showers, water efficient plumbing fixtures, full-size washer and dryer, hardwood floors and custom cabinetry.  Junction is located on the light rail line, further boosting its sustainability score.  The community provides easy access to the city’s major employment centers, such as Uptown, as well as to upscale shopping, dining and entertainment as well as generous green spaces.

The community is managed by Greystar.

Image courtesy of Junction 1504 via Facebook



Patriot Equities Sheds 1.5MSF Charlotte Industrial Complex for $50M

13 Dec 2013, 9:57 pm

By Eliza Theiss, Associate Editor

A joint venture formed by New York-based LRC Properties LLC and New York Life have completed the purchase of a 1.5 million square-foot multi-tenant industrial complex in Charlotte for an acquisition price of $50,525,000, announced Cushman & Wakefield | Talhimer. The properties, 1800 and 1900 Continental Boulevard were acquired from Patriot Equities, represented by Cushman & Wakefield | Talhimer’s Capital Markets Group. Members of the commercial real estate firm’s North Carolina and Atlanta offices also handled the marketing of the property.

Strategically located at the interchange of I-77 and I-485 in Charlotte’s southwest industrial submarket, the 1.5 million square-foot industrial complex also features 25 acres of additional land, which could hold up to 270,000 square feet of warehouse space with direct I-485 frontage.  According to a press release, LRC plans to build out the undeveloped land into big box warehouses.

Patriot Equities purchased the asset in 2007 from Continental Tire, redeveloping and repositioning the industrial hub into a multi-tenant distribution facility with Class A features. LRC will further enhance the property, rebranding and repositioning both 1800 and 1900 Continental Boulevard and add environmentally friendly features.

1900 Continental Boulevard’s four tenants bring the property up to a 98 percent occupancy rate. The asset featured a publicly traded rent roll anchored by Continental Tire. Snyder’s Lance and Snap AV also occupy space in 1900, while the latter leases space in 1800 Continental Boulevard as well. While 1800’s occupancy rate is currently 34 percent, the asset has outstanding leases that will elevate occupancy to 74 percent.

According to Cushman & Wakefield | Talhimer’s latest data Charlotte’s industrial market reflects a steadily growing economy with decreasing vacancies and growing rental rates. Year-over-year vacancies have decreased by 2.3 points to a current 10 percent, while rental rates have grown by 8.4 percent to an average asking rate of $4.11 per square foot. The Southwestern submarket, where the newly traded properties are located has an overall vacancy rate of 5.7 percent and asking rate of $3.98, the lowest within Charlotte. By comparison, Charlotte’s strongest industrial market boasts a rental rate of $4.50 per square foot and a 6.8 percent vacancy.  According to Talhimer’s predictions vacancies are expected to decrease with the larger blocks of Class A and B industrial space to go off the market by the end of Q1 2014. Speculative developments are expected to be announced and buyers’ interest in the market to continue.

Click here for further Charlotte market data

Image courtesy of Cushman & Wakefield | Talhimer

Chart courtesy of Cushman & Wakefield | Talhimer



Cushman & Wakefield | Talhimer Lands 325KSF Leasing Assignment

9 Dec 2013, 7:04 pm

By Eliza Theiss, Associate Editor

Maersk Inc. has awarded the leasing assignment of its 325,000-square-foot regional office to Cushman & Wakefield Talhimer, announced the Mid-Atlantic’s leading commercial real estate firm. Mark Holoman and Meredith Dickerson have been appointed exclusive leasing representatives of the office park.

Located at 9300 Arrowpoint Blvd. in the Arrowpoint Business Park, the corporate campus sprawls on 40 acres and features amenities such as an auditorium, executive suite, full-service cafeteria, fully-equipped fitness center as well as tennis, basketball and volleyball courts, and a softball field. According to PropertyShark.com, the 1985-built asset was purchased by Maersk in April 2006 for $31 million. The real estate website assessed the property’s 2013 market value just short of $31.5 million.

“A.P. Moller-Maersk’s global initiative to optimize its real estate portfolio” is the reason for the company’s move “to optimize its efficiency in its Charlotte office,” a Maersk spokesperson said in a press release, adding that the company will remain in the Charlotte office but will put excess space on the market.

Maersk’s corporate campus represents the largest chunk of available office space in the Charlotte market, which could attract new players to Metrolina, as the city suffers from a lack of available large blocks of office space. According to CBRE’s latest office market report, several entities have been interested in large office space availabilities in Charlotte, defined as more than 150,000 square feet. With move-in dates usually south of 12 months, these enquiries rule out built-to-suit facilities. Although several developers are considering large office projects, mostly in the CBD, to meet these needs, they aren’t expected to break ground prior to reaching a 50 percent pre-lease rate.  The exception is local developer Lincoln Harris, which recently announced plans for a two-tower, 480,000-square-foot speculative office project. Incidentally, the selected site for Capitol Towers at Carnegie is Maersk’s former SouthPark location (details here).

Click here for further Charlotte market data

Image courtesy of Cushman & Wakefield |Talhimer

Chart courtesy of CBRE

 



Lincoln Harris Eyes 480KSF Office Project, Amid Strengthening Market Fundamentals

2 Dec 2013, 9:42 pm

By Eliza Theiss, Associate Editor

Charlotte-based Lincoln Harris has announced plans to develop 480,000 square feet of office space on the former Maersk site in SouthPark, according to a report by the Charlotte Business Journal. Dubbed the Capitol Towers at Carnegie due to design and architecture evocative of Washington D.C., as well as the site’s location on the corner of Carnegie Boulevard and Congress Street, the project is expected to break ground by June 2014. Capitol Towers will comprise two ten-story towers of 240,000 square feet each on a six-acre chunk of the former Maersk site. A seven-story parking deck is planned to the back of the site. Retail space is also in the mix, with the Charlotte Business Journal reporting that the lot’s zoning allows for as much as 15,000 square feet of retail, 5,400 square feet of which will be built between the office towers. Two small structures will also rise at the back of the parking garage.

Lincoln Harris is now seeking city approval for the project and has secured the backing of a yet-to-be-named financial institution to acquire the property owned currently by JLB Partners. The Dallas-based owners picked up the 13-acre former Maersk site in 2012 for $21 million from a U.S Steel and Carnegie Pension Fund affiliate. The Charlotte Business Journal reported a while back that the company intended to sell the eastern part of the site, currently eyed by Lincoln Harris, amid strong interest from office developers, while it planned two-phase apartment construction on the western half. JLB will raise a 350-unit apartment complex in the southwestern corner during phase one. Phase two, set to be built in the northwestern corner, could contain as much as 200 units, the zoning maximum.

While Capital Towers has yet to secure any tenants, developers are confident in building speculative office space, with SouthPark and Charlotte itself currently experiencing a shortage of large blocks of office space for company expansion. Colliers International’s latest data confirms that big blocks of Class A and Class B office space has gone off the market rapidly, although the vacancy for both classes is still in double digits: 13 percent and 15.4 percent. However, net absorptions continue to increase and are expected to continue, with rental rates expected to grow as well, making a Charlotte an attractive market for office development.

Click here for further Charlotte market data

Image courtesy of Google Maps

Chart courtesy of Colliers International

 







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