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Jones Lang LaSalle Income Property Trust Pays $25.5M for Charlotte Distribution Center

11 Jul 2014, 9:01 pm

By Eliza Theiss, Associate Editor

LaSalle Investment Management announced that Jones Lang LaSalle Income Property Trust Inc. has purchased the 346,500-square-foot Charlotte Distribution Center in Charlotte, N.C. for $25.5 million.

The REIT estimates a 6 percent capitalization rate based on the purchase price. The property is fully leased to Greenville, S.C.-based Michelin North America on 14-year term featuring 2.25 percent annual rental increased.  According to the Charlotte Business Journal, Michelin signed the lease for the Twin Lakes Business Park property in September 2013, meaning that there’s still over 13 years left on its term. The warehouse was previously leased by Ingersoll Rand, which vacated in spring 2013. The property was previously owned by Beacon Partners who purchased it from California-based LLC Kendall-Charlotte for $11.4 million, as reported by the Charlotte Business Journal.

This newest purchase offers the Jones Lang LaSalle Income Property Trust stable cash flow, geographic diversification of the portfolio and increased exposure on the eastern seaboard. “Our strategy remains to further grow and diversify the portfolio in terms of tenant mix, property type and geographic location,” said President and CEO of Jones Lang LaSalle Income Property Trust Allan Swaringen.” The purchase of Charlotte Distribution Center has brought the REIT’s total portfolio value to over the $900 million benchmark. Of this, five high-quality core properties worth in excess of $135 million were acquired in first six months of 2014.

Jones Lang LaSalle Income Property Trust is an institutionally-managed, non-listed, daily valuated REIT.

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Image courtesy of Beacon Partners

Crescent Communities Launches 320-Unit Luxury Apartments in 63-Acre Mixed-Use Development

27 Jun 2014, 9:50 pm

By Eliza Theiss, Associate Editor

Crescent Alexander Village, Crescent Communities’ 320-unit luxury apartment complex has opened in Charlotte, announced the developer.

The company’s latest project to complete in the Charlotte Metropolitan Area represents phase one of an ambitious 63-acre mixed-use development currently in the works at University Research Park. As previously reported, further phases will include 250,000 square feet of office space, a hotel and up to 75,000 square feet of retail.

The now completed Senator Royall Drive community is the work of architects The Preston Partnership. LandDesign is contracted as civil engineer and landscape architect. Construction loans issued by Regions Bank financed the development, which is now managed by Riverstone.

Crescent Alexander Village is a registered member of the Audubon International Signature Program and is pursuing Certified Signature Sanctuary status. The community is also NGBS Green Registered, featuring an extensive array of sustainable features such as Energy Star kitchen appliances and windows, efficient water fixtures, low voltage exterior lighting, recycling valet service, water-preserving plants used in landscaping and complimentary bicycles. Sustainability was implemented at Crescent Alexander Village since development, extensively using locally sourced and recycled materials. Furthermore, Crescent Communities contracted Sawmills Ltd., a North Carolina century-designated farm to reclaim timber from the project site. Wood and materials sourced onsite were incorporated into the design and construction of indoor community areas and the dog park.

Community amenities include a resort-style saltwater pool with sundeck and lounge area, outdoor yoga lawn, outdoor kitchen and fire pit, fitness center with dedicated crossfit workout area,  Starbucks coffee bar, community house with business center, catering kitchen, gaming area and private clubroom, garages and storage units, car care center, large wooded dog park and a pond with walking trail.

Crescent Alexander Village comprises 320 one-, two- and three-bedroom units ranging between 781 and 1,399 square feet. Rents range between $890 and $1,390 per month. Units are outfitted with stainless steel appliances, chef-inspired kitchens, walk-in closets and soaking tubs. Among the units are also eight cottage residences that evoke the style of Crescent’s signature Palmetto Bluff resort.

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Image courtesy of Crescent Alexander Village via Facebook

Lash Group Plans to Locate New, 250,000-Sq.-Ft., Headquarters in Charlotte Metro

20 Jun 2014, 8:16 pm

By Eliza Theiss, Associate Editor

Lash Group Inc. has announced plans to develop a new national headquarters to accommodate rapid growth and consolidate operations. The new HQ will be located in the Charlotte Metro town of Fort Mill, S.C. JLL is assisting Lash Group with the relocation.

A AmerisourceBergen Corp. subsidiary, Lash Group has teamed up with Childress Klein Properties and The Springs Co. for the 250,000-square-foot Class A office building. The building will be located in Fort Mill’s Kingsley North business park.

The company will initially invest $57.3 million to develop the new location. The figure includes a long-term lease commitment. According to the South Carolina Department of Commerce, the company’s total investment could go up to $90 million within a few years, and include a second phase with a second building. The South Carolina Coordinating Council for Economic development approved a $2 million set aside grant and job development credits for the project.

Lash Group is expected to take occupancy of the initial 250,000 square feet in March 2016, when it will employ 1,200 current and new workers.  The company will keep around 600 employees in Charlotte through 2019, reported the Fort Mill Times. Based on the company’s current growth projections, the Fort Mill workforce will double to 2,400 associates within a few years.

The new Fort Mill campus will be located in the 530-acre undeveloped Kingsley office park, which features seamless accessibility to I-77 and Highway 160 and is only 11 miles away from Charlotte Douglas International Airport. Kingsley is also within Clear Springs, the region’s largest mixed-use community. Existing and planned amenities at Kingsley include hotels, restaurants and a mix of service providers, as well as the nearby 2,100-acre Anne Spring Close Greenway, ideal for health, wellness and corporate events.

Another company that just announced it will establish a presence in Kingsley is LPL Financial LLC, a subsidiary of LPL Financial Holdings Inc. The largest independent broker/dealer in the U.S is set to break ground in 2015 on a new regional headquarters that will complete by fall 2016. The new corporate office will include amenities such as a health and fitness center, onsite eatery and environmentally conscious features.

LPL will invest $150 million in the new facility through 2022 and create 3,000 jobs, having designated the greater Charlotte region as its primary job growth destination in the following five years.

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Images courtesy of South Carolina Governor Nikki Haley via Facebook

East Charlotte Could See Development of $65M Sports Complex

13 Jun 2014, 10:37 pm

By Eliza Theiss, Associate Editor

Bojangles Coliseum

Bojangles Coliseum and its surrounding area could be redeveloped into a $65 million amateur sports complex, pending city council approval, reported wcnc.com.

If approved, the developer GoodSports would break ground to build a big field house, a 150-key hotel and a renovation of Bojangles Coliseum before the year is out and finish by 2016.

GoodSports would invest $40 million, while $25 million would be covered by the City of Charlotte, a significant portion of which would fund the construction of the field house and parking. Around $12 million, sourced from hospitality taxes, would be used to renovate Bonjangles Stadium, including new seating, scoreboard, electrical systems and roof repairs.

The redevelopment of Bojangles into an indoor amateur sports complex was approved by Charlotte City Council a year ago, with $25 million being the reported cost. According to wsoctv.com’s coverage at the time, planned work on Bojangles included scaling back seating from 11,000 to 7,000 spots, which would be enough to cater to graduation and various entertainment events, as well as sports such as volleyball, basketball and indoor track. The $25 million project was reported to incorporate adjacent Ovens Auditorium, which would also be renovated and would include banquet halls and a smaller auditorium.

According to a recent report by The Charlotte Observer, the city could provide the project with $18 million in upfront money, a sum that was included in 2013’s $816 million capital spending program. The city could also lease a parking lot adjacent to Ovens Audtorium to GoodSports for nominal fee of $1 per year.  The city recently also purchased the Econo Lodge hotel adjacent to Ovens Auditorium for $3.5 million. Although not considered a problem-property, the hotel is slated for demolition to make way for parking for GoodSport’s future hotel.

According to The Charlotte Observer, Sarasota, Fla.-based GoodSports, whose parent company is hotel developer Focus, is pursuing similar projects in Columbus, Ohio, St. Louis, Missouri and Wichita, Kansas, where it will also benefit from city funding.

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Image courtesy of James Willamor via Wikimedia Commons


Vyne on Central Completes Second Phase; Creekside Apartments Refinanced

13 Jun 2014, 10:25 pm

By Eliza Theiss, Associate Editor

Vyne on Central

759 Ventures has completed the 65-unit second phase of Vyne on Central, a condo-turned-apartment project in Charlotte’s Plaza-Midwood neighborhood, reports the Charlotte Business Journal.

The company, which consist of the Mizzi family from Toronto and a team of real estate and investment professionals from across the U.S., purchased the formerly 33-unit project for $2.37 million in 2012 and bought out the 10 units that had sold as condos and proceeded to convert the entire asset to apartment, according to previous coverage by the Charlotte Business Journal. 759 Ventures broke ground on the two-building, 65-unit expansion in 2013. To date over a third of the new units have been leased.

The Central Avenue apartment community offers amenities such as a tropical pool, community garden, grilling stations, fire pit, outdoor lounge, grassy pet area and the TreeHouse community room boasting a kitchen, lounge areas, wide screen TV, WiFi and the onsite leasing center.  Vyne on Central comprises one- and two-bedroom apartments ranging between 650 and 1,040 square feet in size. Rents start at $900 and go over $1,395. Apartment features include Energy Star appliances, energy-efficient windows and spacious balconies. The community is located three miles from Uptown Charlotte.

Creekside Apartments

In other multifamily news, Brett Mason, vice president of NorthMarq Capital’s Raleigh regional office, arranged a $6.1 million financing for the 118-unit Creekside Apartments in Hickory, N.C. NorthMarq arranged financing for the borrower through its Fannie Mae DUS platform. The loan is structured on a 10-year term and 30-year amortization schedule.

Creekside Apartments features one-, two- and three-bedroom apartments ranging between 780 and 1,200 square feet, renting between $613 and over $858 per month. Community amenities include a fitness center, resort-style pool and gazebo, picnic and grill areas, lighted sports court, and mature landscaping throughout the community’s 10-acre site.

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Image credits Vyne on Central via Facebook and NorthMarq

Ferncroft Capital Pays $45M for SouthPark Retail Asset

30 May 2014, 8:56 pm

By Eliza Theiss, Associated Editor

Charlotte-headquartered private real estate firm Ferncroft Capital recently acquired the 131,000-square-foot Morrison retail property in Charlotte’s affluent SouthPark submarket for $44.9 million.

Located at the intersection of Sharon Road and Colony Road, a significant commercial artery of SouthPark and overall Charlotte and the Southeast, the property boasts a 100 percent occupancy rate. Its tenants include organic grocer Earth Fare, Capitol, Barnes and Noble, Firebirds, TrySports and many more high-end retail and restaurant outlets.  The retail asset is part of the Morrison mixed-use development which features a 314-luxury apartment component and a 119-unit condo component.

Berkley Capital represented the seller, identified by the Charlotte Business Journal as Washington, D.C.-based real estate firm Madison Marquette and Ohio-based real estate firm Casto. The latter co-developed the 2006-opened asset with Grubb Properties.  Medalist Capital’s Bryan Brooks arranged debt for the purchase. According to the new owners, Madison Marquette will continue to handle management and leasing at Morrison.

The acquisition of Morrison is consistent with Ferncroft’s approach of targeting quality assets in infill locations with attractive yields,” commented Jeff Thomas, a principal at Ferncroft Capital. “We are excited to establish a solid footprint in the SouthPark retail market during this period of retail and office growth,” he added.

Ferncroft Capital acquires, sources and manages commercial real estate asset in the Southeastern US, with a special focus on the Carolinas. The company usually targets assets located in superior long-term locations, in medium to large markets that are fairly-valued on a risk-adjusted basis in deals ranging between $10 million and $100 million. It usually holds assets for three to seven years. The firm has been one of the top buyers in the Southeast, purchasing over one million square feet of real estate worth over $175 million in the past six years.

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Image via Facebook

Spectrum Properties to Build LEED Gold Office Tower in Uptown Charlotte

23 May 2014, 8:20 pm

By Eliza Theiss, Associate Editor

Charlotte’s Uptown is getting a new office high-rise, announced Cornerstone Real Estate Advisers.  The new structure will rise 25-stories high at the corner of Tryon and Third Street and bear the name 300 South Tryon Street. Designed by LS3P, the Class A office tower is set to break ground in the fall of 2014 and complete in the spring of 2017.

The office tower will feature about 620,000 rentable square feet of Class A office space on floors two through 25 with 25,000-square-foot average floor plates. Amenities will include a two-story lobby on the corner of Third and  Tryon streets; Club 300, a 10,000-square foot fitness center; street-level commercial space including a coffee shop just off the lobby; a tavern restaurant facing the adjacent Romare Bearden linear park; and an upscale two-story restaurant with terrace seating overlooking Tryon Street. Primary parking will be provided in 408-space four-level underground parking facility. A 320-car above-ground deck owned by the building across Third Street will provide additional parking.

Developer Spectrum Properties is targeting a LEED Gold certification. In order to achieve the coveted certification, features such as a state-of-the-art water-management system and an energy-efficient use of natural daylight will be implemented. Further sustainable features include expansive use of sustainable materials during construction, preferred parking and charging stations for low emission vehicles, secure bicycle racks and recycling areas within the building.

The office high-rise will benefit from excellent location, sitting between the Duke Energy, Wells Fargo and Bank of America campuses as well as adjacent to the new BB&T Ballpark.

Babson Capital Management has been announced as the anchor tenant of the property, leasing 200,000 square feet of the building’s overall total of 632,385 square feet, reported the Charlotte Business Journal. According to the same source, the 1.6-acre building site is owned by a Cornerstone Real Estate Advisers affiliate.  Spectrum Properties is also planning to develop a 208-key upscale boutique hotel at the corner of Third and Church streets, adjacent to the office high-rise. The future hotel will reportedly be connected to the office building via escalators from the main lobby.

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Image credits: Spectrum Properties 

Vision Ventures, Mount Vernon Sells EpiCentre to CIM Group for $130.5M

16 May 2014, 9:29 pm

By Eliza Theiss, Associate Editor

HFF announced closing the sale of The EpiCenter a 305,147-square-foot mixed-use entertainment center in Charlotte.

The transit-oriented urban infill project sold for $130.5 million to CIM Group, the owner of the 22-story BB&T Center Class B office tower, reported the Charlotte Business Journal.

According to information released by HFF, the company marketed EpiCentre on behalf of a joint venture led by Vision Ventures and Mount Vernon Asset Management LLC, along with an institutional capital partner identified as The Baupost Group by the Charlotte Business Journal. The joint venture took control of the distressed property in 2012, after purchasing its debt in late 2010. Following the purchase, the partnership worked to stabilize the property, which now boasts a 94 percent rent roll and a highly successful outdoor media program.

Located in Uptown Charlotte, EpiCentre is the Queen City’s premier restaurant and entertainment retail venue. It benefits from a very advantageous location: right across from the Time Warner Cable Arena, on South College Street. The EpiCentre is also part of Charlotte’s Overstreet Mall which connects it to seven office buildings, among them the iconic the Bank of America and the Wells Fargo Headquarters.  Built in 2008, the center is comprised of 255,512 square feet of retail/entertainment space and 49,336 square feet of office space.  Boasting a 94 percent occupancy rate, EpiCentre’s tenant roster includes CVS, Studio Movie Grill, Blackfinn American Saloon, Gold’s Gym and 16 additional restaurants.

Founded in 1998, Vision Ventures is a well-capitalized acquisition, brokerage, construction and development company. Mount Vernon Asset Management is an institutional investor servicer, providing asset management services and strategies for turning ill-performing assets into high-level performers.

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Image courtesy of EpiCentre via Facebook

NorthMarq Brokers $2.7M Acquisition Financing; HFF Arranges Infill Retail Asset Sales

9 May 2014, 9:48 pm

By Eliza Theiss, Associate Editor

Northlake Plaza

NorthMarq Capital’s Charlotte-based regional office vice president, Kevin Jenkins, has arranged $2.17 million for the acquisition of Northlake Plaza, the company announced.

The deal is structured with a 15-year term and a 25-year amortization schedule and has been set up by NorthMarq for the borrower through its relationship with a correspondent life company. Northlake Plaza features 9,600 square feet of retail space.

This isn’t the only deal NorthMarq recently handled in the Charlotte region.  Jenkins also arranged the $2.85 million refinance of the 31,500-square-foot Mallard Professional Center office building. The transaction was arranged by NorthMarq through its relationship with credit Union and was structured with a five-year term and 20-year amortization.

Northmarq also arranged the recent refinance the 208-unit Woodview Apartments in Charlotte. Senior Vice-President/Managing Director of NorthMarq Capital’s Charlotte office Bill Matone structured the $4.128 million refinance with a 10-year term and 30-year amortization schedule. Financing was arranged with Fannie Mae DUS lender.

In other retail news, HFF recently closed on the sale of the 64,901 Specialty Shops on the Park urban infill retail center in Charlotte. A joint venture between a Hill Partners Inc. affiliate and an institutional partner picked up the property for an undisclosed amount free and clear of existing debt, from the previous owner, a family office advised by Aston Properties of Charlotte. Managing director Richard Reid and Jim Hamilton led the HFF sales team representing the seller.

Located in the affluent SouthPark suburb of Charlotte, the 6401 Morrsion Boulevard retail center is located across the street from popular shopping destination SouthPark Mall. Specialty shops tenant roster includes Bricktop’s, Williams-Sonoma and Talbots.

Image via Northmarq

Welcome Hotels Purchases Comfort Inn for $3.35M from Chapter 11 Trustee

2 May 2014, 9:41 pm

By Eliza Theiss, Associate Editor

MBA Hotel Brokers Inc. has announced the sale of the 153-key Comfort Inn Carowinds, located within the Charlotte, N.C. metro area in Fort Mill, S.C. Buyer Welcome Hotels of Fort Mill Inc. paid $3.35 million for the asset.

MBA Hotel Brokers entered a co-brokerage agreement with South Carolina brokers Hunter Realty Associates Inc. to exclusively represent the seller, a court-appointed Chapter 11 trustee, identified as David Kalik of True Blue Hospitality. The seller received legal counsel from Harrison Penn of McCarthy Law Firm. The hotel was put in receivership by the lender in February 2013. After the borrower filed for bankruptcy, the court-appointed trustee arranged for the sale of the property.

“This transaction required extra effort by MBA Hotel Brokers due to the transitions with the receiver and then the trustee of bankruptcy court. We basically had to sell the hotel twice. Our marketing clearly created competition and drove maximum value for the asset,” Charlie Fritsch, president of MBA Hotel Brokers said.

Located at 3725 Avenue of the Carolinas, less than 12 miles from downtown Charlotte, the four-story hotel benefits from high visibility and easy accessibility from I-77. The property is adjacent to Carowinds Amusement Park, which provides a steady stream of guests throughout the summer months.

Built in 1986, the property underwent renovations while under the management of the receiver. Amenities include an outdoor pool, fitness center, high-speed Wi-Fi and onsite parking, including truck and bus parking.

Maryland-based MBA Hotel Brokers is a member of Hotel Brokers International (HBI), a leader in hotel real estate sales. Founded in 1959, HBI has brokered in excess of 10,000 hotel real estate sales and as of late has been responsible for 48 percent of all select-service and economy hotel sales in the U.S.

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Image courtesy of MBA Hotel Brokers

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