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

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.

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Image courtesy of Crescent Communities

Chart courtesy of Marcus & Millichap

New Apartment Projects Rumored in Charlotte

By Eliza Theiss, Associate Editor

Rumors of new multifamily projects have been abound lately. Following Gvest Partners’ recent announcement of developing a $37 million 342-unit apartment complex in the artsy NoDa neighborhood of Charlotte, another hot submarket within the city could see a brand new apartment community. According to the Charlotte Business Journal, Woodfield Investment Trust LLC is conducting due diligence on a two-acre property in the vicinity of the future BB&T Ballpark.

Even though no official statements have yet been released, rumors of the company planning to develop a 230-unit apartment community near the ballpark have been circulating for months. Currently, however, Woodfield has the site under contract, which is empty save for a 13,000-square-foot industrial structure. If the company moves forward with the project, plans call for 230 units spread across four levels complete with a two-level car park.

Located in close proximity to the Bank of America Stadium, the Third Ward is set to become even hotter with the Charlotte Knights minor league baseball team’s new $54 million stadium currently under construction. The 10,000-seat stadium broke ground earlier this years and is slated to open in time for the 2014 season. It is expected to not only generate healthy tax income, but also a boom of new developments in the surrounding area—from office projects to hotels to multifamily projects.

Woodfield currently has two other multifamily projects under construction in Metrolina and expects to break ground on two more before the year is out. One of the planned communities will be developed in the NoDa district. It owns several completed projects in the city as well, such as the Gramercy Square at Ayrsley.

In other multifamily news, Crescent Communities LLC (previously known as Crescent Resources) is also rumored to be looking to develop a 300-unit apartment community in the Midtown area. According to the Charlotte Business Journal, Crescent will buy up about two acres of property at the intersection of East Morehead and Harding Place in order to construct a community featuring underground parking. The alleged site currently holds some low-rise office properties.

Image courtesy of Woodfield Investments’ Facebook page

Chart courtesy of Marcus & Millichap

$37M Apartment Complex Planned for NoDa, Speculative Office Space for Mooresville

By Eliza Theiss, Associate Editor

Gvest Partners LLC, a closely held real estate investment partnership that focuses on the acquisition, development and management of commercial real estate and renewable energy assets, has announced plans for a $37 million apartment development in Charlotte. According to the Charlotte Business Journal, Gvest plans to build a 342-unit apartment complex in the city’s NoDa neighborhood.

Expected to break ground within a few weeks, The Yards at NoDa will consist of eight four-level buildings spread across 10 acres west of North Brevard St. The developer purchased the plot in early 2012, which, according to the report, has been rezoned for proper land use. Gvest paid $4 million for the land.

The community, which will rise in close proximity to a station of the planned extended light-rail line, will feature studios, one-, two- and three-bedroom units, as well as two townhomes.  Amenities will include a fitness center, resort style pool, clubhouse, dog park and surface parking. The community will also mirror NoDa’s vibrant, walkable, urban vibe with features such as graffitied walls.

The property is expected to be completed in 16 months. Construction financing was provided by Well Fargo & Co.

In other news, signs of market recovery are beginning to show in Metrolina as well, with ideas and rumors of speculative development in the Greater Charlotte area creating a buzz. According to a report by the Charlotte Business Journal, Merinos Home Furnishings owner Michael Bay is considering redeveloping some of the available space at his Mooresville store into office space.

With the Merinos home furnishings store taking up about half of the available 1.1 million square feet of space, Bay is reportedly considering renovating 82,000 square feet into speculative office space.

Photo courtesy of Merino Home Furnishing Warehouse’s Facebook page

SunTrust to Anchor 105,000-Sq.-Ft. Sharon Square Office Component

By Eliza Theiss, Associate Editor

Atlanta-based SunTrust Banks Inc. is consolidating its Charlotte area operation and has chosen Pappas Properties’ SouthPark mixed-use development as its future location. According to a report by the Charlotte Business Journal, SunTrust has signed a 43,500-square-foot lease at Sharon Square, which translates into the second and third floor of a five-story 105,500-square-foot Class A office building set to break ground in May. The new location will act as SunTrust’s Charlotte headquarters beginning in the second quarter of 2014, the planned date of relocation.

SunTrust’s Charlotte presence includes a 30,000-square-foot office building under its ownership and an approximately 30,000-square-foot lease in a SouthPark office building. Some of its operations from these locations will be consolidated at Sharon Square, where the company plans to open street-level retail branch.

Pappas Properties is developing Sharon Square with the Allen Tate Co. The four-phase property is currently adding a $52 million Phase Two, which broke ground in September 2012.  It comprises two luxury residential buildings with street-level retail space, as well as a 445-car parking facility.

As previously reported on this page, retail will occupy 22,000 square feet and will contain restaurants and high-end boutiques. Some of the amenities of the residential component will include private courtyards, landscaped garden terraces, fitness center and elevated pool terraces. According to the Charlotte Business Journal, units will include one-, two- and three-bedroom apartments with the first units completed in Fall 2013 along with the retail space.

Phase One of the project opened in August 2012 and is anchored by Charlotte’s first Whole Foods store with a total surface of 48,000 square feet.

Image courtesy of pappasproperties.com

Three Multifamily Communities Trade for $83M

By Eliza Theiss, Associate Editor

Richmond, Va.-based Landmark Apartment Trust of America Inc. (LATA) has announced the acquisition of three Charlotte multifamily communities for an estimated $83 million. The three assets, Mallard Creek, Abbington Place and Ashley Court, have a combined 795 units and are 93 percent occupied.

“The acquisition of these three high-quality properties significantly expands our operations in Charlotte and aligns with our disciplined investment strategy of acquiring attractive assets at a discount to replacement cost,” said LATA CEO Stanley J. Olander in a news release, adding: “We believe these assets offer strong unrealized cash flow potential that we plan to unlock by implementing our proven operating platform and renovation and repositioning strategy.”

And the optimism surrounding the multifamily industry seems to be quite on point. According to Marcus & Millichap’s 2013 market forecast report, the 20-34-year-old age bracket—the largest rental age group—is expected to increase by 50,000 in the next five years, which will not only keep vacancies low but also increase building efforts even further throughout the year. It is most likely that completed units will pass well above the last decade’s average of 2,000 per annum.

And the three properties purchased by LATA are located ideally for increasing revenue and tenancy. Their close proximity to downtown Charlotte and the University submarket, with convenient access to major interstate highways, will appeal to young professionals in the greater Charlotte area, as will their amenities.

Located at 6001 Bennettsville Ln., the 1999-built Mallard Creek boasts 240 units. Community amenities include a fully equipped fitness center, pool complete with a deck, resident clubhouse, business center, playground, car care center, detached garages and landscaped grounds. The garden-style community is also pet-friendly – a major draw for a young demographic. Mallard Creek boast one-, two- and three-bedroom units.

Located at 10015 Pantheon Court, 279-unit Abbington Place was developed in two phases between 2005 and 2008. It comprises one-, two and three-bedroom units in either three-story buildings or villas. Amenities include a pool, patios, courtyards and detached garages.

Adjacent to Abbington Places is the 276-unit Ashley Court. The 9740 Ashley Lake Court property was built in two phases between 2009 and 2011. The one-, two and three-bedroom apartment complex boasts amenities such as a 24-hour cardio center, 24-hour business center, private conference room, pool with adjacent dressing rooms, clubhouse complete with coffee bar, community grilling area and car care center.

Landmark Apartment Trust of America owns and operates over 11,000 apartment units located throughout the Southeastern United States. LATA targets below market acquisition and repositioning of mid-income multifamily properties in the South.

Photo courtesy of the Abbington Place Facebook page

Chart courtesy of Marcus & Millichap

$20M ER Breaks Ground; Roby Commercial Completes VA Outpatient Clinic Renovation

By Eliza Theiss, Associate Editor

Carolinas Healthcare System has broken ground on its newest free-standing ER facility. The new venture will rise on Rocky River Road in Harrisburg, Cabarrus County. Expected to be completed in early 2014, the 23,689-square-foot 24-hour emergency care facility will boast six treatment rooms, a full service lab, diagnostic imaging equipment (including a CT scanner), and a helipad to airlift patients to and from the facility.

According to a report by the Charlotte Business Journal, the $20.2 million emergency department—named CMC-Harrisburg—will be the healthcare system’s sixth free-standing emergency. Other such units can be found in Kannapolis, Huntersville, Steele Creek and Waxhaw.

As previously reported on this page, another free-standing emergency care department, CMC-Morrorcroft, is currently under construction in SouthPark and is expected to open in March 2014. CMC-Harrisburg will have a staff equivalent to 45 full-time employees.

In other healthcare news, Roby Commercial announced completing its renovation at the VA Outpatient Clinic—a project that added two new exam rooms and a storage room to the facility. The facility provides primary care services to veterans in the greater Charlotte area, as well as behavioral health services including individual, group and family counseling. Located at 8601 University East Dr., the facility originally opened in 2008.

Roby Commercial operates with an unlimited general contractor license in both North and South Carolina and is a member of the Roby Family of Companies, which also includes Robycross. As previously reported, Robycross recently completed renovation work on eight Brookdale Senior Living communities, four of which are located in Metrolina.

Photo courtesy of Carolinas Healthcare System

Mixed-use Midtown Asset Sold for $94M; Suburban Medical Facility Trades for $14M

By Eliza Theiss, Associate Editor

Birmingham, Ala.-based Colonial Properties Trust Inc. has announced the sale of Metropolitan Midtown in Charlotte, N.C. The mixed-use property developed in 2008 with Pappas Properties brought in sales proceeds of $94.4 million, which will be used to fund Colonial’s multifamily development endeavors, as well as to improve the company balance sheet.

The 1225 Baxter St. asset features 170,000 square feet of office space, 172,000 square feet of retail and 2,219 parking spaces. According to a company news release, the property was 93.5 percent occupied as of December 31, 2012. Metropolitan Midtown’s retail component boasts 27 stores and anchor tenants such as Target—with 137,000 square feet, Marshall’s—with a 32,967-square-foot lease, and a 30,000-square-foot Best Buy and Staples.

With the sale of Midtown, Colonial reached its goal of having at least 90 percent of the total net operating income generated by its multifamily assets.

According to the Charlotte Business Journal, the asset was purchased by institutional investors advised by a J.P. Morgan Investment Management Inc. company. CBRE represented seller Midtown Redevelopment Partners, a Colonial and Pappas-managed LLC.

In other news, Marcus & Millichap Real Estate Investment Services announced arranging the sale of the 42,300-square-foot Mint Hill Medical Commons medical care facility in Mint Hill, N.C. The fully leased property located at 11304 Hawthorne Dr. traded for $14.1 million, or about $334 per square foot.

The property’s anchor tenant is the Charlotte Mecklenburg Hospital Authority, operating as Mint Hill Primary Care through Carolinas HealthCare System. It leases 92 percent of the facility. The seller was a Charlotte-based developer, while the buyer is New York-based. The transaction was arranged via a 1031 exchange.

In further news, Crescent Resources LLC announced commencing construction on the Circle University City student housing project. As previously reported on this page, Circle University City is 546-bed luxury student residences projects set to open in summer 2014 right across from the UNC Charlotte campus’ main entry. The 187-unit project will feature one-, two- and three-bedroom units and amenities such as individual and group study areas, a media room, fitness center with yoga studio, game room, pool, tanning beds, rooftop deck, fire pits, grilling area and secure car park. Circle University City will be pursuing LEED certification.

Rendering courtesy of Crescent Resources

Chart courtesy of Marcus &Millichap

Brookdale Senior Living Therapy Clinics Upgraded; Historic Building Becomes Medical Office Suite

By Eliza Theiss, Associate Editor

Robycross, a national retirement community and healthcare center renovation company, has announced completing work started in mid-2012 on eight Brookdale Senior Living communities in North Carolina. Through upgrade work executed by Robycross, Brookdale’s communities—four of which are located in Metrolina—now boast renovated and upgraded therapy clinics.

The new Innovative Senior Care (ISC) clinics can be found in greater Charlotte area communities, examples of which include Clare Bridge of Asheville, Salisbury Gardens, Sterling House of Shelby and the Carriage Club of Charlotte.

ISC clinics are central to the senior-living style Brookdale offers, as they provide techniques for pain and disability prevention and promote functional independence via traditional therapy, as well as less conventional routines—such as Tai Chi, massage therapy and chair yoga.

An example of the type of renovation and upgrade work done by Robycross can be seen at the Carriage Club of Charlotte—a 44-acre rental retirement community with independent living, personalized assisted living, Alzheimer’s and dementia care, and skilled nursing housing options in apartments and villas.

At the Carriage Club of Charlotte, Robycross worked on two ISC therapy clinics. One located in the independent living clubhouse was doubled in size from 528 square feet to 1,440 square feet, while another 972-square-foot clinic with state-of-the-art rehabilitation equipment was added by converting existing space.

In other news, Capital City Bank—the banking subsidiary of Capital Bank Financial Corp. (formerly North American Financial Holdings Inc.)—has announced May 2013 as the expected date of completion for the historic Biltmore School Building revitalization and redevelopment in Asheville, N.C.

The $12 million project undertaken by local real estate firm Biltmore Property Group and North Carolina contractor Beverly-Grant Inc. is already well underway, with over 47,000 square feet of the building already redeveloped and leased. Built in 1927, the 58,000-square-foot property was home to Biltmore High School, Biltmore Elementary School and UNC-Asheville, but fell into disuse for ten years. Several attempts of revitalization failed.

The currently undertaken revamp, which has involved some demolition work as well, has given Biltmore Building a new life as a state-of-the-art medical office building.

Photo courtesy of Mefi Franco’s Facebook page

$16.5M Refinancing Set for The Village of Ballantyne; Library Plans Approved by County

By Eliza Theiss, Associate Editor

Southwood Realty Company Inc., a privately owned property management company headquartered in Gastonia, N.C., has secured first mortgage refinancing of $16.5 million for The Village of Ballantyne—the company’s 240-unit multifamily property located in Gastonia. According to CoStar Group, Bill Matone—NorthMarq Capital’s Charlotte Regional Office senior vice president and managing director—arranged the 10-year-term loan, which has a 25-year amortization schedule.

Located at 2380 Ballantyne Dr., the 997,112-square-foot community is 22 miles from Charlotte, ensuring quick access to the Queen City. The 2006-built property offers one-, two- and three-bedroom units featuring 9-foot ceilings, granite countertops, ceiling fans, energy-efficient central heat and air, wood cabinets and outside storage, among other things. Community amenities include a 24-hour fitness center, saltwater pool, clubhouse, picnic area, grilling stations, a dog park and parking lot.

In other news, the Catawba County Board of Commissioners has approved architectural plans for the Sherills Ford Branch Library. The 10,000-square-foot library is to be built on 2.5 acres at the intersection of Highway 150 and Sherills Ford Road. The project is expected to break ground in mid-2013 and be completed in 2014.

The bidding process for selecting a contractor is expected to start soon. Funding for the project was set aside by the Board over several years, accumulating the necessary $2.9 million. Designed by Jenkins-Peer Architect, the building will be brick-clad and feature an atrium entrance, a children’s area and landscaped outside area. Public meeting space will be generous. Plans call for a structure that is both economically and environmentally conscious.

Photo courtesy of The Village of Ballantyne’s Facebook page

Chart courtesy of Marcus & Millichap

Carolina Pavilion Sold for $106M

By Eliza Theiss, Associate Editor

The start of a new year, as always, is the time of new reports in the real estate industry. And so DDR Corp., an owner and manager of value-oriented shopping centers in North and South America, has released its sales and acquisitions activity report for the fourth quarter of 2012. According to a press release, two major acquisitions were made in Q4 2012, both in North Carolina.

One of the purchased properties is Carolina Pavilion—the 852,000-square-foot prime shopping center located on the corner of South Boulevard and Interstate 485 in Charlotte. Purchased for $106 million, the power center is currently 94 percent leased, with that percentage expected to increase in the near future, as 85,000 square feet of currently vacant space will be taken up by national chains such as Golfsmith and PetSmart.

Current anchor tenants include Target, Kohl’s, Bed, Bath &Beyond, AMC Theatres, Nordstrom Rack and Craft Stores, among others. Carolina Pavilion has a trade area population of 812,000, with average household incomes of $78,000, serving the affluent suburbs to the south of the Queen City, as well as the I-77 residential corridor and neighborhood of South Charlotte.

The other recently acquired North Carolina property is 434,000-square-foot Poyner Place in Raleigh. The 96 percent leased prime power center was purchased for $45 million. Boasting anchor tenants such as Target, Old Navy and World Market, among others, the shopping center sits in a trade area populated by 367,000, with average household incomes of $78,000.

Neither property is encumbered by mortgage debt. Funding for both purchases was provided by a combination of asset sale proceeds, new common equity and unsecured notes issued in November.

Photo courtesy of Kelly Martin via Wikimedia Commons

Chart courtesy of Marcus & Millichap