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Multi-Housing Advisors Brokers Sale of Charlotte Apartment Communities for $24.2M

8 Oct 2013, 8:39 pm

By Eliza Theiss, Associate Editor

Multi Housing Advisors (MHA) has announced that it has brokered the sale of six non-portfolio apartment communities in North Carolina totaling 1,261 units for a total of $34.4 million, of which $24.4 represented the total sale price of the Charlotte assets. While Charlotte-based MHA brokers Jordan McCarley and Marc Robinson represented the sellers in all transactions, the buyers were not represented by brokers.

Of the six apartment complexes, three are located in Charlotte and three in Greensboro, N.C. Among the recently sold Charlotte communities is the 220-unit Beacon Eastchase, purchased by Eller Capital Partners. The Chapel Hill, NC-based multifamily investment, development and property management company paid $8.3 million for the value-add asset. Located at 1600 Chasewood Drive, the market-rate apartment community has easy access to mass transit and local interstates. The garden-style community is comprised of studio, one- and two-bedroom apartments with features such as patio or balcony, dishwasher and fire place. Community amenities include swimming pool, storage units and laundry facility.

Another Charlotte apartment asset to be sold was the 192-unit Hanover Landing. Old Greenwich, Conn.-based Ellington Management Group purchased the 5920 Monroe Road garden style apartment community for $3.6 million. The East Charlotte asset is made up of one-, two- and three-bedroom units ranging between 689 and 1,095 square feet. Unit amenities include walk-in closet, dishwasher, patio or balcony, while community amenities include pool, onsite business center, club house, courtyard and laundry facility, as well as easy access to public transportation.

MHA also brokered the sale of the 454-unit The Park to FMM on behalf of Northland Investment Corp. The buyer paid $12.3 million for the 2332 Dunlavin Way community.

The Greensboro communities include the 109-unit Lemans at Lawndale and the 106-unit Lexington Commons. The two Class C communities were purchased by SBV Communities for a total of $6.1 million, while Richard Anderson paid $4 million for the 180-unit Fox Run.

For further Charlotte market data click here

Image courtesy of Beacon Eastchase Apartments via Facebook

LEED Silver Luxury Apartments Set to Open in Northeastern Charlotte

29 Sep 2013, 11:04 pm

By Eliza Theiss, Associate Editor

Charlotte is about to gain a green apartment company, as Fore Property Company (FORE) a full-service, national real estate company, has announced the fast-approaching opening of the 176-unit Belle Haven, a LEED Silver luxury apartment community in Charlotte.

The seven-building apartment community comprises one-, two- and three-bedroom luxury apartments featuring high-end elements such as Clean Steel appliances, granite countertops and open living spaces with nine-foot ceilings. Leasing for Belle Haven has commenced with the first residents expected in mid-October. They’ll enjoy community amenities such as a full-service fitness center with Yoga and Pilates room, clubhouse complete with HD entertainment area and conference room, and a pool. Several natural preserves are in close proximity to the community located at the intersection of E. W Harris Boulevard and Old Concord Road.

Belle Haven is also close to the University of North Carolina at Charlotte, Wells Fargo, and several business centers as well as shopping and restaurants. Reduced energy and water consumption create a low pollution and carbon footprint for the luxury residential community, designed to meet the U.S. Green Building Council’s LEED Silver standard.

Belle Haven represents FORE’s first foray into the Charlotte multifamily market and only the second one in North Carolina. FORE has developed and owns Forest Glen Apartments in Durham, NC. A mid-October opening was also announced for 1000 South Broadway, a 260-unit LEED Gold luxury apartment community in Denver, Colorado. FORE has also started leasing at Groveton Green, a 226-unit luxury apartment complex about to complete development in Owing Mills, Maryland. The community will be the area’s first LEED Gold apartment project.

For further Charlotte market data click here

Image courtesy of Fore Property Company via PRNewsFoto

29KSF Orthopedic Medical Center Breaks Ground in Gastonia

20 Sep 2013, 4:40 pm

By Eliza Theiss, Associate Editor

Brackett Flagship Properties LLC has announced that is has broken ground on the first phase of the future location of Carolina Orthopaedic and Sports Medicine, a Gaston County comprehensive orthopedic and sports medicine and care provider.

The new facility will be located at the corner of Court Drive and Summit Crossing Place, adjacent to the medical facility’s current location near Caromont Regional Medical Center in Gastonia, Charlotte’s second largest satellite city.

Located on a 12-acre site, phase one of the orthopedic center will consist of a 29,000-square-foot structure that will provide expanded medical office space, specialized space for bone, joint and muscle care, pain management procedure suites, expanded imaging services, such as digital X-ray and physical therapy suites. The facility will incorporate environmentally conscious features such as motion sensor lighting.

Completion is set for the summer of 2014, following which Carolina Orthopaedic and Sports Medicine will relocate its operations to the new address. Two additional phases of development are expected to create up to 41,000 square feet of additional medical office space.

The project’s development team includes a host of local companies including Charlotte-based developer Brackett Flagship Properties, general contractor Tyler 2 Construction, and project architect Peterson Associates, a firm specializing in healthcare architecture, engineering and interior design. St. Paul, MN-based American Engineering has been designated civil engineer. Project financing was provided by Raleigh, N.C.-based First Citizen Bank.

Formed in 2010 by the union of Brackett Company and Flagship Capital Partners, Brackett Flagship Properties is a full-service real estate company specializing in the development and management of healthcare real estate in the Southeastern US. Brackett Flagship has developed over 35 healthcare assets and owns and manages a 60-property portfolio comprising nearly 2 million square feet.

Click here for further Charlotte market data

Rendering courtesy of Brackett Flagship Properties

Kite Picks Up Shopping Center, While Whole Foods Sign Lease for Second Location

13 Sep 2013, 11:29 pm

By Eliza Theiss, Associate Editor

Kite Realty Group Trust, a full-service, vertically integrated REIT focused on neighborhood and community shopping centers, has announced the acquisition of the 60,000-square-foot Toringdon Market in the Ballantyne submarket of Charlotte.

Kite paid $15.9 million for the grocery-anchored retail asset, not including closing costs. The shopping center boasts a 97 percent occupancy rate, with its tenant roster including a host of eateries, such as Tsuki Japanese Steak House and Sushi Bar, Brigs, Zeitouni Mediterranean Grill, as well as retailers such as Ballantyne Jewelers, Big Frog and several others.

The property’s anchor tenant is Earth Fare, a health- and environment-conscious grocery store with a food philosophy that bans artificial sweeteners, preservatives and colors among a host of other substances, while also striving to source products from within a 100-mile radius of its store locations.

Located at the intersection of I-485 and Johnston Road, the shopping center’s five-mile trade area comprises a population of 169,000 with an average household income of $107,000.

“The acquisition of Toringdon Market gives us another high-quality asset in the Southeast,” says Company Chairman and CEO, John A. Kite.

Kite expressed his company’s intent on expanding its asset base in the region, which is spurred by strong population and income growth.

According to the Charlotte Business Journal, the seller RREEF, a REIT, was represented by Berkeley Capital Advisors.

In other retail news, metro Charlotte’s northern part will likely get its highly-anticipated Whole Foods Market, as the natural and organic foods supermarket chain announced its intent to open a second location in Metrolina.

While Charlotte’s first Whole Foods opened a little more than a year ago in Charlotte’s affluent SouthPark neighborhood, the newest store was announced for the Lake Norman area, another upscale area of metropolitan Charlotte. The 35,000-square-foot store is expected to open in late 2014.

According to the Charlotte Business Journal, Whole Foods Market Inc. has signed a 36,500-square-foot lease in Huntersville’s Northcross Commons shopping center, taking up the better part of a Food Lion store, that had previously announced its intent to close.

The shopping center is owned by Charlotte-based Hawthorne Retail Partners.  Upgrades to the property, as well as an influx of new tenants are expected by the owners.

Click here for further Charlotte market data

Image credit: Hawthorne Retail Partners

Rock Hill CBD Redevelopment Steadily Moves Forward

9 Sep 2013, 4:49 am

By Eliza Theiss, Associate Editor

Rock Hill’s Knowledge Park, an ambitious initiative aiming to redevelop Rock Hill’s urban core, took a major step forward by selecting the project’s master developer. Out of five remaining competitors, Sora-Phelps Rock Hill, was announced as master developer for the project at a recent Rock Hill Economic Development Corp. meeting, reported the Charlotte Business Journal. The next step for the new master developer will be the inking of a nonbinding agreement between Sora-Phelps Rock Hill, the city of Rock Hill, the Knowledge Park Leadership Group and Winthrop University. This will be followed by a binding contract, which will also specify the exact financial investment the developer will contribute to the project.

Sora-Phelps Rock Hill is a joint venture between Towson, Maryland-based Sora Development and Greeley, Colorado-based Phelps Development, a subsidiary of Hensel Phelps. Reportedly, the Sora-Phelps partnership’s edge for winning was Sora’s previous project, Rowan Boulevard, a $300 million urban redevelopment project in Glassboro, NJ, that links Rowan University Glassboro’s downtown retail district. The project comprises mixed-use properties featuring retail, office, hospitality, intergenerational residential and student housing in an environment with high walkability, which is along the lines of what Knowledge Park seeks to achieve.

Envisioned as Rock Hill’s center for 21st century economy, Knowledge Park as a concept emerged in 2012 as a public-private partnership, led by the Knowledge Park Leadership Group. Knowledge Park encompasses an area of circa one square mile located between the Old Town East development at Elizabeth Lane to Winthrop University at Cherry Road incorporating the old Textile Corridor in Rock Hill’s downtown, as well as landmarks such as Rock Hill City Hall and Winthrop University. It holds 18 development opportunities that have planning in place and sponsors as well as probable financing. Thirteen sites are up for development for residential, commercial or institutional development. Knowledge Park developers are being enticed with tax credits and a steady educated workforce supply provided by two major local education institutions: Winthrop University and York Technical College. Moreover, the city will invest over $50 million in infrastructure maintenance and expansion projects. According to the Herald Online, that number is in fact over $60 million and includes projects such as road maintenance and development, railroad track upgrades, a new electric substation, a new water tank and a new parking deck. Not included in this sum is a new 1.5-mile downtown trolley  line, as well as costs to demolish outdated real estate properties and the acquisition of the Bleachery, the biggest real estate asset within the park. With this investment Rock Hill officials hope to entice existing businesses to expand, as well as to lure new job creators and developers to the area.

Rock Hill is the fourth largest city in the Charlotte Metropolitan Area with a 66, 154-strong population. Rock Hill experienced a 32.9 percent population increase between 2000 and 2010. It’s projected that growth will continue between 2013 and 2018, albeit at a more temperate rate of 5.29 percent. Its 30-minute trade area is projected to grow by 8.3 percent, second only to Mecklenburg County’s 8.4 percent.

Click here for further Charlotte market data

Image courtesy of Knowledge Park Rock Hill

Concord Business Park Welcomes Second August Addition

31 Aug 2013, 7:20 pm

By Eliza Theiss, Associate Editor

OILES Corporation of Japan subsidiary OILES America Corporation has announced the completion of its newest expansion at its Concord, N.C. corporate headquarters.

The third expansion of the company since the American subsidiary moved its corporate headquarters to Concord’s International Business Park in 1990, it has added 48,000 square feet to the OILES onsite manufacturing facility. Expansion work included increasing development and research facilities, the addition of truck docks and parking spaces as well as renovating existing office and warehouse space. Energy efficiency was also improved with the addition of skylights and various sensors. Solar energy harvesting is being considered for the future.

Expansion costs are expected to reach approximately $6 million and will include equipment and machinery. The larger facility will also mean additional employment opportunities—an estimated minimum of 30 new jobs will be created.

Concord-based BJW Architecture, CESI Land Development Services and CM Black Construction worked together on realizing the expansion, along with The Nolim Group, owner of the International Business Park.

Prep work on the project started three years ago with actual onsite work kicking off in August 2012. According to a report by the Charlotte Business Journal, this addition has increased OILES’ total space in Concord to 129,000 square feet, while its employee roster will grow to at least 180.

The OILES expansion isn’t the only recent addition to the 500-acre International Business Park. Earlier this month, an 88,527-square-foot Class A speculative industrial building was inaugurated, reported Cabarrus Magazine. Located at 4541 Enterprise Drive, the asset was developed by 390 Business Boulevard, LLC, a joint venture between The Nolim Group, CM Black Construction Company and CESI Land Development, entities that also collaborated on the OILES expansion. The asset features side loading and the potential for LEED certification. It is scalable, with the ability to add office space and to expand to 141,000 square feet.

Click here for further Charlotte market data

Image credit:  BJW Architecture

Chart courtesy of Colliers International

Multi-Million Dollar Upgrades Planned at Two Charlotte Student Housing Communities

20 Aug 2013, 4:46 pm

By Eliza Theiss, Associate Editor

The Preiss Company, the fifth largest privately held student housing corporation in the US and the largest off-campus student housing provider in Charlotte, has announced it will be investing an excess of $3 million in upgrades at two of its Charlotte assets: 49 North and University Village at Charlotte.

The Preiss Company recapitalized both properties earlier in 2013 with its joint venture partner Heitman LLC, a real-estate focused global investment management firm. The value-add renovation is expected to increase ROI for the company. “Students are some of the most demanding renters in multi-housing, but they respond well to upgrades, property enhancements and new technology,” declared Kyle Barger, Preiss’ vice president of construction management. “These are ideally located properties that are highly regarded by students and their parents, and we want keep them on the cutting edge to provide the best possible student housing experience,” he added. Barger also noted that students are surveyed on a regular basis to have a realistic view on what both students and parents are looking for in regards to value and amenities. The upgrades that are to be implemented at both properties will reflect the needs and preferences of their renters.

The Preiss strategy is proving successful as University Village at Charlotte is 100 percent pre-leased and presents a 36 percent renewal rate, while 49 North is 90 percent pre-leased and boasts an impressive 49 percent renewal rate. The average student housing lease renewal rate stands at 30 percent.

The 130-unit 49 North (previously known as University Club) will undergo a more significant enhancement, with 70 percent of apartments being refitted with higher grade appliances, flooring and lighting. Some community amenities will also be upgraded, leading with the pool area, which will be outfitted with an extra water feature as well as a nearby fire pit and grill area. The fitness facility will trade up to new fitness equipment, while the rest of the clubhouse will also be outfitted with new lighting, furnishings as well as a computer café area. Acquired in January 2006, 49 North also features basketball and sand volleyball courts, a tanning station, and pool table, as well as patio, washer and dryer in all apartments. Units have a four-bedroom four-bath layout in individual two story townhomes.

Upgrades at 168-unit University Village at Charlotte include the addition of a grill area and new furniture to the pool area, as well as new fitness facility equipment, a tanning bed and a new computer cafe area and new lighting and furnishing in the 5,000-square-foot clubhouse. Current community amenities include a resort-style pool, flat screen TVs and game room complete with billiards and foosball tables, basketball and volleyball courts, and iPod docking stations throughout the property. Units are available in three- or four-bedroom layouts and feature washers and dryers, fully-furnished kitchens and stainless, energy-efficient appliances.

Work is scheduled to be complete by September 2013, before the start of the new semester.

Click here for further Charlotte market data

Photo courtesy of University Village at Charlotte’s Facebook page

Carmel Executive Park Sells for $25M

12 Aug 2013, 6:06 pm

By Eliza Theiss, Associate Editor

Adler Kawa Real Estate Advisors (AKREA), a joint venture between Adler Group and Kawa Capital Management, has announced the acquisition of Carmel Executive Park. The master-planned office park was purchased for $25,459,000 or $113.69 per square foot.

The 223,850-square-foot Class B+ office park located at the intersection of Carmel Pineville-Matthews Roads comprises six buildings. AKREA purchased the South Charlotte asset from Pizzagalli Properties LLC, a Burlington, VT-based privately held, full-service real estate developer. Pizzagalli developed the property between 1981 and 1990 and was the owner until its current sale. CBRE Vice President Patrick Gildea and CBRE Executive Vice President Ryan Clutter marketed the business park on behalf of Pizzagalli.

Carmel Executive Park’s more than 100 tenants lease 95 percent of the property, with around 10,000 square feet vacant and awaiting tenants. The new owners plan on making capital improvements throughout the asset. AKREA will focus on renewing the property’s current tenants base, which includes Liberty Mutual Insurance, JP Morgan Chase Bank, Crump Life Insurance Services, Bank of North Carolina and Hanson Brick East. Leasing and marketing is handled by Colliers International broker Brad Grow. The property’s on-site management team will stay on with AKREA.

According to the Charlotte Business Journal, the sale was financed through Goldman Sachs. According to information released by AKREA, debt financing for the acquisition was secured in CBRE’s Debt & Equity Finance Group by Vice Chairman Charles J. Foschini, First Vice President Christopher A. Apone and Senior Vice President Compie Newman.

The purchase of Carmel represents the first acquisition of AKREA’s second fund, which has raised $50 million to date and has authorization to raise an additional $100 million. Adler Kawa Real Estate Fund II, a closed-end fully discretionary fund, is focused on purchasing multi-tenant office and industrial properties in the eastern and southern US. AKREA’s first fund transacted over 4.5 million square feet of assets valued at $460 million.

Click here for more Charlotte market data

Image courtesy of Adler Group’s Facebook page

Chart courtesy of Colliers International 

90-Acre Mixed-Use Planned by Childress Klein Properties and Crosland Southeast

5 Aug 2013, 9:39 pm

By Eliza Theiss, Associate Editor

Charlotte’s real estate market is about to get hotter with local developers Childress Klein Properties and Crosland Southeast announcing a partnership to develop a 90-acre mixed-use master-planned community in the Queen City’s affluent and highly desirable South Charlotte submarket.

The 90-acre site, a former farm located at the junction of Providence and Ardrey Kell Road, is known as The Matthews Family Farm, after its owners. The land has been under the ownership of the Matthews family since 1860, when it entered the family estate as a wedding present and part of a dowry. Though the site is not yet zoned for commercial development, with the rapid expansion of Charlotte in recent years, a number of developers, both local and national, have been eyeing the property for several years. Hearing about Crosland’s interest to develop the site, Childress Klein approached the developer known for both small-scale built-to-suit projects, as well as large-scale development, such as the 270-acre mixed-use Blakeney in Charlotte and the 850,000-square-foot multi-use Birkdale Village in Huntersville, NC. Forming the partnership proved to be extremely beneficial for both parties, as their combined experience and past projects prompted the Matthews family to personally choose them to develop the site.

In its current form, the project envisions building an upscale grocery-anchored retail component between 225,000-250,000 square feet, with 90,000 square feet of restaurant and retail space located on the main street surrounding a public plaza that would feature outdoor dining. The partnership will also develop two Class A office buildings between five and six stories, targeting mid-sized Fortune 1000 companies. Two two-story medical office buildings totaling 60,000 square feet are also planned, as well as two one-level parking decks, in a wrapped style, resembling the ones at Childress Klein’s Birkdale Village asset. A significant residential component is also planned for the yet-to-be-named project: 375 luxury apartment units as well as 180 townhomes and single family homes.  The partnership has already started negotiations with both single- and multifamily developers for the residential component. The partnership has also set up meetings with the surrounding community so as to integrate the project optimally. Traffic studies have also been conducted. Furthermore, the project will entail infrastructure changes, such as the continuation of Ardrey Kell Road and the addition of a traffic signal at Golf Links Drive and Providence Road, all at the expense of the developers.

The project is estimated to cost around $200 million. The developers have filed a rezoning application with a public hearing expected to take place in October of the current year and a city council likely to happen in 2014.

Click here for further Charlotte market data

Image of Blakeney Square courtesy of Crosland Southeast

Spectrum To Build Luxury Ballpark Apartments

3 Jul 2013, 8:32 pm

By Eliza Theiss, Associate Editor

Charlotte, Forbes top U.S. cities darling (this time ranking at No.4  on the top ten fastest growing cities since the recession list with a 15.8 percent growth since 2007) continues to show clear signs of its boom. The now 775,202-strong city’s population boom of course generates demand for housing, and with downtown living still a trend on the rise, Charlotte’s city center is aflutter with construction activity.

One of the most recent multifamily projects to be announced is Spectrum Properties’ The Mint. Expected to break ground by the end of the year, the boutique apartment project will rise on the corner of South Graham and West Trade streets. In fact its location is the source of the name—the apartment building will be built on the block where a U.S. Mint branch was located, until 1933.

According to the Charlotte Business Journal, future residents will enjoy amenities such as a pool, fitness center, high-end community room and web lounge, two private courtyards, a sky terrace with views of the Queen City skyline, bike-sharing program for residents, and a pet elevator connecting pet owners to a dog park.

The seven-story development will be comprised of two levels of covered parking, supporting five stories of residential units with an average size of 900 square feet. The project’s 177 luxury residences will comprise one- and two-bedroom units. Rents are expected to be lower at The Mint due to lower construction costs stemming from the building employing a wood frame.

The uptown mid-rise property will border the $54 million BB&T Ballpark, currently under construction, which is expected to make it a sought after location. The ballpark, set to be finished in spring 2014, will be the new home of the minor-league Charlotte Knights. The 10,000-seat stadium is expected to generate significant income and development in the surrounding area. Multifamily projects rumored or under development in the area include Woodfield Investments’ 230-unit project on South Graham St., covered on this page.

Click here for more Charlotte market data

Image courtesy of BB&T Ballpark

Greater Charlotte Area Gets 50K Sq. Ft. Data Center

14 Jun 2013, 8:40 pm

By Eliza Theiss, Associate Editor

The North Carolina Research Campus in Kannapolis has announced signing its eighteenth business. Winston-Salem, NC-based DataChambers, LLC, a full-service information technology and managed services provider, has finalized a deal with Castle & Cooke Inc., the developers of the 350-acre Kannapolis research campus, reports the Salisbury Post. Per the terms of the agreement, DataChambers will develop a 50,000-square-foot data center near the North Carolina Research Campus.

The new facility will reportedly feature the latest LEED standards, as well as state-of-the-art power, HVAC, security and network connectivity systems to ensure maximum performance along with high energy-efficiency standards. The facility will also be built to withstand hurricane-force winds.

The new data center is expected to attract further businesses, such as research companies to the campus. According to the Charlotte Business Journal’s coverage of the story, the facility will create 20 new jobs, paying salaries between $70,000 and $90,000. The data center is expected to open in 2014’s second quarter and is expected to cover DataChamber’s Charlotte area demands for about three years. After this period, an expansion of the facility is possible. According to a press release, Extreme Network, Inc.’s Open Fabric data center architecture will be implemented at the site. Blue Door Networks,  a solutions integrator that specializes in the supply, design and support of next generation data center networking and converged storage will also advise on the building.

DataChamber currently operates a 140,000-square-foot facility in Salem Business Park in a secure underground, blast-resistant bunker that is also out of the reach of the 100 year flood plain. The 2002-founded company will also open a 50,000-square-foot location in Raleigh, NC by the end of June 2013.

Image courtesy of DataChambers, LLC’s Facebook page

Former Marriott Converts into Crowne Plaza

7 Jun 2013, 1:44 pm

By Eliza Theiss, Associate Editor

InterContinental Hotels Group has announced the opening of Crowne Plaza Charlotte Executive Park—the brand’s newest location. The suburban hotel is set to undergo a multi-million dollar repositioning renovation targeting both guest rooms and common areas.

The conversion of the hotel from a Marriott property to the Crowne Plaza brand, as well as the planned upgrades, are funded by MAM-Charlotte Hotel LLC, the asset’s owner. Property management will be handled by Atlanta-based McGlashan Hospitality. The hotel is franchised by an affiliate of IHG.

Located at 5700 Westpark Dr. just off Interstate 77, the 297-key hotel is in close proximity to Charlotte Douglas International Airport, as well as numerous corporate offices. Paired with its extensive meeting facilities—15,000 square feet including a ballroom and 18 meeting rooms, Crowne Plaza Charlotte Executive Park will extensively target business travelers, as expressed by Gina LaBarre, vice president of Americas Brand Management and Upscale Brands at IHG.

“Business travelers visiting Charlotte will find that the hotel offers the amenities and services they need to have a productive stay,” LaBarre said.

The hotel’s proximity to major sporting attractions, such as the Bank of America Stadium, Charlotte International Speedway and the 398-acre Carowinds Amusement Park, will appeal to leisure travelers as well.

Amenities at the 18-story hotel include a full-service business center, state-of-the-art fitness center, indoor and outdoor pool, outdoor dining terrace and bar, full-service Birch Restaurant & Bar, and Wi-Fi throughout. The hotel is part of the IHG Green Engage program, the company’s signature online sustainability tool meant to identify ways to increase energy efficiency and lower resource consumption.

The Crowne Plaza Charlotte Executive Park is part of string of Crowne Plaza properties opening in 2013, along with locations in New York, Detroit, Baltimore and Long Island.

Click here for further Charlotte market data

Image courtesy of InterContinental Hotels Group

$50M Luxury Residential Development in the Works for Charlotte

31 May 2013, 2:03 pm

By Eliza Theiss, Associate Editor

Developer, owner and operator of multifamily and master-planned communities, Crescent Communities, has announced the acquisition of 2.3 acres for its newest multifamily project in Charlotte. Dubbed Crescent Dilworth, the mixed-use luxury project is the result of a partnership between Charlotte-based Crescent Communities and Southern Apartment Group LLC, also headquartered in the Queen City.

Southern Apartment Group started out handling land acquisition for the project, consolidating the parcels that make up the site. However, the Charles Lindsey McAlpine and Shane Seagle-led multifamily development company is confirmed to stay on as development partner throughout the full run of the development process.

Crescent Dilworth is expected to be a $50 million project, including the cost of the land. The luxury project will feature both commercial and residential space. Additionally, the seven-story property will have ground-level retail, a two-story parking garage, and five floors of luxury residences comprised of 300 units. Apartments will have studio, one- and two-bedroom configurations.

The style of residences will be diverse: walk-up units along Morehead Street will keep the surrounding area’s residential design, while the largest of the units—the 2,600-square-foot deluxe apartments—will boast indoor and outdoor terraces, as well as sizeable private terraces. Other design features incorporated in the building’s façade include traditional brick and cedar trellis elements, as well as Tennessee fieldstone.

“Crescent is focused on designing communities that integrate well with existing neighborhoods and community lifestyles,” said Ben Collins, vice president of Crescent Communities Multifamily Group.

Community amenities will include a top-floor courtyard with lounge pool connecting to a lap pool, outdoor seating, grilling areas, fire pits, an indoor/outdoor clubhouse and dog spa. The community health center will come complete with cardio equipment, a CrossFit gym, yoga studio and several cycling-friendly features such as indoor/outdoor bike storage and a bicycle repair center.

But it’s not only the community’s extensive fitness amenities that will appeal to those seeking an active lifestyle. Crescent Dilworth’s site is adjacent to Little Sugarcreek Greenway, which will feature 19 miles of trail and land connectors upon completion.

The greenway, however, is just one of the area’s attractions. Shopping, dining and employment opportunities are within easy reach—chief among them the Carolina’s Medical Center (CMC), which is located across from the future mixed-use development. To appeal beyond the convenient location to CMC, developers will incorporate features such as blackout shades and acoustic dampening between floors, thus accommodating the changing sleeping schedule of health care professionals.

Crescent expects to break ground in the fall of 2013 and complete the project in the spring of 2015. The development will be financed by company equity. BB+M Architecture, Vignette Interior Design, civil engineer and landscape architect LandDesign, and conceptual design consultant Historical Concepts are also part of the development team.

Click here for further market data on Charlotte

Photo courtesy of Crescent Communities

DDR Opens 900,000-Sq.-Ft. Belgate Shopping Center

24 May 2013, 1:50 pm

By Eliza Theiss, Associate Editor

Beachwood, Ohio-based DDR Corp., an owner and manager of value-oriented shopping centers, has announced the opening of Belgate Shopping Center near I-85 in Charlotte, N.C. The 900,000-square-foot value-oriented center is DDR’s first ground-up domestic development since the 2008 market crash, proving not only the developer’s confidence in the Charlotte economy, but also acting as a clear sign of market recovery.

Moreover, the project is expected to attract further commercial development along the I-85 University City corridor.

The fully leased shopping center is anchored by a 176,000-square-foot Walmart and a 367,000-square-foot IKEA, with the latter being the only location of the Swedish furniture retailer between Washington, D.C. and Atlanta. That alone expands Belgate’s trade area to approximately two million shoppers.

The asset’s junior anchors include Marshalls, Old Navy, Furniture Row ULTA Beauty, Shoe Carnival and Hobby Lobby—a tenant mix that will fully benefit from the stable traffic generated by the nearby UNC Charlotte campus, boasting an enrollment in excess of 30,000 students. Traffic is expected to increase in the future with the Charlotte Area Transit System‘s expansion to University City.

“Belgate represented a unique opportunity to take over a stalled development project, and by leveraging our operating platform, we were able to deliver growth opportunities for our retail partners and our shareholders,” declared Paul Freddo, senior executive vice president of leasing and development for DDR. He added that not only has the power center opened ahead of schedule, but it has also surpassed the development return threshold with an over 10 percent unlevered cash on cost return.

Prior to DDR’s takeover of the project, the power center’s development had been stalling for several years. With the addition of Belgate Shopping Center, DDR now owns and manages four million square feet of gross leasable area in the Charlotte metropolitan area, making the Queen City region the company’s fourth largest market after San Juan, Atlanta and Chicago. Other DDR retail properties in the region include the 2012-acquired Cotswold Village and Carolina Pavilion in Charlotte.

You can read more about the acquisition of Carolina Pavilion here.

For further Charlotte market data, click here

Photo courtesy of DDR Corp. via PRNewswire


Landmark Pays $21M for 380-unit Victoria Park

17 May 2013, 1:35 pm

By Eliza Theiss, Associate Editor

Richmond, Va.-based Landmark Apartment Trust of America Inc. has announced two acquisitions in the Carolinas totaling 600 units. The transactions, worth a combined $36 million, include the 380-unit Victoria Park in North Carolina’s booming Charlotte metropolitan area and the 220-unit Reserve at River Walk in Columbia, S.C. Featuring an array of attractive amenities, the two apartment complexes have a combined occupancy rate of 95 percent.

“The addition of these assets to our portfolio aligns with our disciplined investment strategy of acquiring assets in high-growth Southeastern markets at a discount to replacement cost,” declared Stanley J. Olander, chief executive officer of Landmark. “We are confident our proven operating platform strategy will maximize the potential of each asset, unlocking unrealized cash flow opportunities.” Oleander also predicted value-add renovation work will be undertaken at both properties.

Victoria Park’s 4616 Stoney Trace Dr. address locates it within the town of Mint Hill with swift access to Charlotte’s major employment and entertainment opportunities, while at the same time offering the peaceful atmosphere of suburbia. The community boasts several resort-style amenities such as both indoor and outdoor swimming pools, a multi-sports court, picnic area, playground and lush landscaping. Other community privileges include a fitness center, 24-hour clothes care center, Wi-Fi café, onsite business center and resident activities program.

Apartment amenities include walk-in closets, a gourmet kitchen, dishwasher and private balcony, with larger units boasting wood-burning fireplaces. Victoria Park is comprised of one-, two- and three-bedroom units ranging from 645 to 1,306 square feet. Rents start at $505 and go up to $950 per month.

Victoria Park’s individual purchase price was $21 million.

Click here for more Charlotte market data

Photo credits: Victoria Park’s Facebook page

22-Story Second Ward Mixed-Use Development on Track for Completion

10 May 2013, 2:01 pm

By Eliza Theiss, Associate Editor

What was once an unfinished eyesore in Charlotte’s Uptown is now shaping up to be a prized downtown asset. Formerly named The Park, the 21-story building under development at the corner of South Caldwell and East 3rd Streets is now known as SKYE Condominiums—but the mixed-use development will feature far more than just condos.

Alongside the 67 luxury condo units, two penthouse suites will also be featured, as well as a 172-key limited-service hotel, street-level retail, a rooftop restaurant and bar. The property’s condo component will take up floors 14 through 19 and will be made up of one- and two-bedroom condominiums in several layouts, with floor spaces starting at 700 square feet for one-bedroom units and reaching 2,500 square feet for two-bedroom condos.

All units feature state-of-the-art stainless steel appliances, granite countertops and large-scale terraces. Both penthouse suits will be located on the 21st floor, offering sweeping views of Uptown Charlotte and 3,500 square feet of open living space. The three-bedroom, three-and-a-half bathroom units also offer a two-story great room, formal dining room, and gourmet kitchen with a wet bar, among other features.

SKYE Condominiums residents will enjoy amenities such as a theatre room, fitness center, rooftop pool and sun deck, demonstration kitchen and wet bar, party room, game and billiards room, lounge complete with an E-room, private mail room, additional storage space, and bicycle storage. Other building amenities include a green roof with open space walkways, 24-hour security and concierge service, five high-speed elevators, resident room service, and valet parking.

The property’s ground floor will be taken up by retail, while part of the rooftop will be occupied by a restaurant and bar. The property will also feature a five-story parking garage with three levels of residents-only, controlled access.

The high-rise is seeking LEED certification from the U.S. Green Building Council. The McDevitt Agency is the designated broker for SKYE’s 67 condos, of which, according to the Charlotte Business Journal, 24 are already under contract. The same source reports the first residential units will be delivered in the third quarter of the current year, with the hotel component, a 172-key Hyatt dubbed Hyatt Place Charlotte/Downtown, opening late in the third quarter as well. In the lead-up to the September opening of the hotel, which will occupy the lower levels of the high-rise, Hyatt veteran Don Lockhart has been appointed general manager.

SKYE’s current owner and developer, Small Brothers Charlotte LLC, acquired the building, then an unfinished 106-unit condo project, in 2009 for a little over $4.5 million. It subsequently increased its area ownership by purchasing two adjacent parcels to increase pedestrian and vehicle access to the high-rise. Award-winning international design firm Perkins Eastman is architect of the project, while Cleveland Construction Inc. is the designated construction management firm.

For more market data from Charlotte, click here.

Image courtesy of SKYE Condominium’s Facebook page

Adolfson & Peterson Buys Charlotte Location for $2.5M; Fifth Third Center Applauded for Energy Efficiency

6 May 2013, 1:38 pm

By Eliza Theiss, Associate Editor

Minneapolis-based Adolfson & Peterson Construction (A&P) has announced its purchase of the Fowler Building, the company’s Charlotte location. A&P moved into the South Tryon Street building in March 2012, leasing 8,300 square feet of the property’s gross leasable area of 18,000 square feet.

Built in 1928, the property is located in the historic South End neighborhood conveniently close to Charlotte’s light rail system and Uptown—a definite advantage of the property. A&P will invest in the property’s vacant space to convert it into additional office space, which is needed due to its increasing employee roster. Such includes part of the third floor and basement area.

A tenant currently leasing 3,500 square feet on the third floor will continue to occupy its current space. The Charlotte Business Journal identifies the tenant as IT consulting firm Systemtec. A&P, represented by Josh Beaver of The Nichols Co., paid a reported $2.5 million for the Fowler building, purchasing it from Boulevard at 1447 South Tryon Street LLC—represented by Greg Pappanastos of Argos Real Estate Advisors.

In other news, Parmenter Realty Partners announced that Fifth Third Center, one of its Charlotte assets, has been named among the top three energy saving buildings in the “Over 500,000 Square Foot” category of the Smart Energy Now® Building Recognition Program. Smart Energy Now® is Duke Energy’s program dedicated to aid in lowering energy consumption in Charlotte’s Uptown office properties, with a focus on changing employee attitudes and habits in relation to energy consumption.

Located at 201 North Tryon St., Fifth Third Center is a LEED Silver and Energy Star-certified marquis trophy tower. The 30-story Class A office building features 654,533 square feet of office space, as well as an attached ten-story, 1,030-car parking garage. Parmenter Realty purchased the asset in mid-2012 from Parkway Properties in one of the year’s biggest deals in Charlotte, paying $245 million for the coveted asset (click here to read more about this transaction).

For further Charlotte market data click here.

Photo courtesy of Adolfson & Peterson Construction


32-story Uptown Office Building Hits the Market

3 May 2013, 2:14 pm

By Eliza Theiss, Associate Editor

Following hot on the heels of last week’s sale of One Wells Fargo Center (read more about the transaction here), another uptown office high-rise has just hit the market. Though not as hot an asset as the one-million-square-foot Wells Fargo trophy tower, the 121 West Trade office tower is still very much an attractive property.

121 West Trade, previously known as the Interstate Tower, has been listed for sale with CBRE Group Inc., according to a Charlotte Business Journal report. The property, located at the corner of Trade and Tryon Streets, is 72 percent occupied, with it largest tenant—Chicago Bridge & Iron Co.—taking up a 117,000-square-foot lease set to expire in 2018. The property also houses the members-only Charlotte City Club on its top floor.

Faison Enterprises Inc. developed the 32-story office building in 1990. An affiliate of the company, Tryon Street LLC, sold the property in 2006 to Tryon Tower LLC, an affiliate of Cornerstone Real Estate Advisers LLC. The entity, current owner of 121 West Trade, paid $52.3 million for the asset.

The office tower features 330,000-square-feet of Class A office space. Amenities include a 260-car, eight-floor parking garage, onsite management by Spectrum Properties, 24-hour security service, an outdoor courtyard with water features, 360-degree views of Charlotte, and upgraded fixtures and finishes. The property features street-level retail as well. The Kohn Pedersen Fox Associates-designed office high-rise features a classical architectural look with limestone, granite and marble exteriors.

Click here for more Charlotte market data.

Photo courtesy of Civilengtiger via Wikimedia Commons


Starwood Picks Up One Wells Fargo Center Trophy Tower

19 Apr 2013, 2:36 pm

By Eliza Theiss, Associate Editor

Leading private investment firm Starwood Capital Group has announced that one of its affiliates, New Jersey-based Vision Equities, in partnership with Mountain Lakes, has acquired One Wells Fargo Center—one of Charlotte’s trophy office buildings. The off-market purchase was made at a yet to be disclosed price.

Previous owner Childress Klein Properties will stay on to handle property management and leasing under a long-term agreement with the new owners. The office tower had been under Childress Klein’s ownership for 25 years.

“We are pleased to be acquiring one of the premier office buildings in Charlotte’s central business district. 1 Wells Fargo Center is a welcome addition to our portfolio, as it is a high-quality asset with a strong tenant roster that will generate significant cash flow for years to come,” declared Starwood Capital Senior Vice President Mark Keatley.

The high-quality Class AA office building is located in Charlotte’s central business district and features one million square feet of office space. The property is 98 percent-leased to long-term tenants. Seven of the property’s nine largest tenants, occupying 92 percent of the total rentable area, have been in One Wells Fargo Center for over 20 years and have average remaining leasing contracts averaging 7.5 years. An added bonus of the property is that circa 70 percent of its in-place income derives from investment grade tenants.

Amenities at the 42-story office tower include a seven-level underground parking garage of approximately 1,100 parking spaces; a 24-hour on-site security with controlled visitor and tenant access; shops and service providers such as a coffee house, dry cleaner and sundry store; a YMCA; casual and fine dining venues; and part of Wachovia Center—a hub of offices, restaurants, shops, venues and businesses spanning three city blocks.

For more Charlotte market data click here.

Image courtesy of Kozo via Wikimedia Commons

Crescent Communities Breaks Ground on 63-Acre Mixed-Use Alexander Village in Charlotte

12 Apr 2013, 1:39 pm

By Eliza Theiss, Associate Editor

Crescent Communities (formerly known as Crescent Resources) has announced breaking ground on the 63-acre health club-inspired Alexander Village. The ambitious project is being developed on Senator Royall Drive close to University Research Park, an area presenting high growth numbers. The mixed-use development is set to be constructed in several phases and is inspired by Crescent Communities’ award-winning Palmetto Bluff Resort located in Bluffton, S.C.

The $33.6 million Phase One of Crescent Alexander Village is the multi-use development’s 27-acre residential component. The garden-style luxury apartment community will comprise 320 units. Buildings will feature a vernacular classical design, such as stonework reminiscent of 18th-century stone homes—present in the community’s clubhouse, as well as several seaside resort-type elements such as an outdoor yoga lawn. Eight of the 320 units will be cottages intended as corporate apartments.

Community amenities include a clubhouse that will target LEED certification, a state-of-the-art health club, business center, clubroom, gaming area, catering kitchen, outdoor kitchen, outdoor fireplace, lounging areas, resort-style saltwater pool, aqua sundeck, bocce courts, amphitheater, scenic pond with fitness trail, and an expansive, wooded dog park.

“We are creating a community that will be an ideal complement to the continued growth in high-level career opportunities within University Research Park,” declared Brian Natwick, president of Crescent’s multifamily group, in a news release.

Further development phases include 250,000 square feet of office space, up to 75,000 square feet of retail, and a hotel. The project is a registered member of the Audubon International Signature Program and is working towards becoming  a Certified Signature Sanctuary. Regions Bank is project construction lender.

For more market data from Charlotte, click here.

Image courtesy of Crescent Communities

Chart courtesy of Marcus & Millichap


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