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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.

Click here for further Charlotte market data

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.

Click here for further Charlotte market data

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.

Click here for further Charlotte market data

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.

Click here for further Charlotte market data

Image courtesy of MBA Hotel Brokers

Metro Charlotte Sees Growth in Spec Developments

25 Apr 2014, 5:29 pm

By Eliza Theiss, Associate Editor

215 International Crossing

Metro Charlotte is experiencing a growing trend of speculative developments of late.  Trinity Capital Advisors recently broke ground on 215 International Crossing, a 277,253-square-foot speculative distribution/manufacturing facility in Concord, N.C. Set to complete in December 2014, the tilt-wall, rear-loading industrial building will feature abundant office space with natural light and expansive truck and auto parking. Located on the corner of International Drive and Poplar Tent Road, minutes away from two I-85 exits as well as Highway 73, the facility boasts both accessibility and exposure. High profile corporate users located in the International Drive area are also expected to be a draw for future clients.

215 International Crossing was designed by Merriman Schmitt Architects and is being built by general contractors Myers & Chapman.  Terry Brennan of Trinity Partners is marketing the property on behalf of the developer.

The development is expected to bring further economic growth to the area. According to Cabarrus Regional Chamber and Economic Development Senior Vice President Margie Bukowski, the project “offers us a unique distribution/manufacturing space that we did not have before to show to potential companies looking at our county.” She adds: “The location of the building is perfect for the demand we are seeing for industrial buildings close to Interstate 85.”

Claremont speculative building groundbreaking

Claremont, N.C. is also getting a new spec building. A public-private partnership comprised of Catawba County, the City of Claremont, Matthews Construction, the Economic Development Corporation (EDC) and Innovate Catawba has recently broken ground on a 51,200-square-foot pre-cast concrete speculative building. The structure is being developed on 9.31 acres owned by the Matthews family and will complete in July 2014. It will feature 28- to 32-foot clear ceiling heights and will be able to be fully built out according to customer specifications within 120 days. If necessary, the structure can be expanded to128,000 square feet.

The City of Claremont, Catawba County and the EDC’s Committee of 100 will market the building both national and internationally and cover its carrying cost for up to three years. The structure is the first development in Building for Jobs, Innovate Catawba’s project aiming to create partnerships between the government and local developers and contractors at costs that will be inviting towards clients.

Click here for further Charlotte market data

Images via Trinity Capital Advisors and Catawba County Economic Development Corporation

Terwilliger Pappas Breaks Ground on 184-Unit Solis Dilworth

18 Apr 2014, 4:05 pm

By Eliza Theiss, Associate Editor

Terwilliger Pappas Multifamily Partners has broken ground on Charlotte’s newest apartment community, the 184-unit Solis Dilworth.

Located on a 2.2-acre lot in Charlotte’s Uptown, Solis Dilworth will feature craftsman style architecture that will harmonize with the neighborhood’s look and feel, while also setting the community apart from other infill projects. The five-story luxury apartment complex will comprise studio, one- and two-bedroom units set around a central courtyard featuring a resort-style saltwater pool and cabana.  Further community amenities include a fitness center with yoga studio, game rooms, lounge and pet grooming and exercise facilities.

Aside from its luxury amenities and finishes, Solis Dilworth’s other major draw is its venue. Located at Morehead Street at Kenilworth Avenue, the community is adjacent to Carolina Medical Center, the largest medical complex in the Carolinas, and is conveniently located to Uptown Charlotte’s major employers, the Little Sugar Creek Greenway and a bevy of retail and entertainment options that will appeal toresidents looking to be close to both work and entertainment.

According to Terwilliger Pappas COO Alan Dean, the neighborhood’s walkability and overall charm is also expected to be a draw.

“Dilworth is a nationally recognized neighborhood with a great blend of amenities including streets lined by large oak trees and the many cafes, shops and recreational amenities that are within walking distance,” he says.

General contractor Adolfson and Peterson, architecture firm Rule Joy Trammell + Rubio and landscape architecture and engineering firm Cole Jenest Stone are part of the Solis Dilworth project team.

Other apartment projects by Terwilliger Pappas Multifamily Partners include the currently leasing 239-unit Solis Sharon Square in South Charlotte and the 280-unit Solis Downwood in Atlanta’s Buckhead District, which recently broke ground (details here).

Click here for further Charlotte market data

Image courtesy of Terwilliger Pappas Multifamily Partners

FelCors Sells Charlotte Hotel for $37M

4 Apr 2014, 5:52 pm

By Eliza Theiss, Associate Editor

FelCor Lodging Trust Incorporated has announced entering into a $37 million sales agreement with an undisclosed buyer for the 208-key Doubletree Suites Hotel Charlotte – SouthPark as part of its portfolio repositioning plan.  The deal is expected to close in May and the buyer has put down a $900,000 non-refundable deposit.

FelCor has sold 26 non-strategic hotels as part of its portfolio repositioning plan and has signed or is currently in negotiations to shed four additional properties for aggregate proceeds of about $80 million, which will be used to refund outstanding debt.

Located in Charlotte’s affluent SouthPark neighborhood, Doubletree Suites Hotel Charlotte is in close proximity to some of Metrolina’s finest shopping, dining and entertainment, such as the SouthPark Mall, Symphony Park, Mint Museum, Carowinds Theme Park and Boomerang Bay Waterpark, as well as the Queen City’s business center and major employers, such as Bank of America, Coca-Cola and Nucor. Amenities include 12,000 square feet of flexible meeting and event space, golf course, pool, fitness center, business center, The Market Café hotel restaurant and the Banker’s Lounge. The hotel offers one- and two-bedroom suites ranging between 700 and 1,000 square feet.

In other news, another Charlotte Hotel traded recently. The 163-key Hyatt House Charlotte / Center City was purchased in March 2014 by affiliates of RLJ Lodging Trust as part of a ten-hotel portfolio acquisition. RLJ paid a total of $313 million for the just-closed acquisition and announced it will engage in $25 million worth of capital expenditures mostly over the next 25 months.  The 1,560-key portfolio will be managed by Hyatt affiliates.

Image courtesy of DoubleTree Suites by Hilton Charlotte-SouthPark

1,200-acre Berewick Expands with Single Family and Retail

1 Apr 2014, 4:02 pm

By Eliza Theiss, Associate Editor

Pappas Properties, the company behind the 1,200-acre master-planned Berewick community has teamed up with Lennar Corporation for a 68-acre expansion to the Southwest Charlotte community. Per the terms of the agreement, Lennar will build single-family homes in the Village of Aberdeen component of Berewick as well as a pool, open for all Berewick residents. Lennar’s homes, priced from the low $200,000s, will range between 2,200 and 3,500 square feet and feature four to six bedrooms.  Lennar homes developed in the Village of Abernathy neighborhood of Berewick featured lofts, bonus rooms, and designer upgrades such as granite countertops, ceramic tile, hardwood floors and staggered cabinetry.

Pappas Properties VP, Marketing, Brian Roth managed the marketing of the site acquired by Lennar. According to The Charlotte Business Journal, a Pappas affiliate acquired the site from a partnership controlled by Sarah Belk Gambrell, one of the largest Metrolina landowners, paying $2.4 million in February 2014. The targeted groundbreaking at the moment was touted as the third quarter of 2014.

Berewick Town Center

Lennar’s single family homes aren’t the only new development kicking off at Berewick. Developer Pappas Properties intends to break ground by the end of the year on Berewick Town Center, a Harris Teeter-anchored shopping complex also featuring neighborhood shops, restaurants, services and on-street parking. Located at the corner of Steel Creek and Shopton West roads, the development will feature a design reminiscent of the area’s Scottish heritage. Town Center’s future phases also include townhomes, apartments and professional and medical office space.

Upon completion, pedestrian- and bike-friendly Berewick will comprise multiple single family neighborhoods, an employment campus with an office and business park, a town center with retail and multifamily housing, over 300 acres of green space , Mecklenburg County’s largest district park, offering 195 acres of sports fields and trails and the 6-acre, 5,200 Manor House containing community amenities such as a fitness room, swimming pools and meeting space.

Image courtesy of Pappas properties via Berewick.com

Crescent Communities HQ Goes LEED Silver ; Cassidy Turley Brokers Office Lease and M-U Sale

24 Mar 2014, 5:33 am

By Eliza Theiss, Associate Editor

Crescent Communities CEO Todd Mansfield receives USGBC LEED Silver certification plaque

Crescent Communities, a diversified real estate investment, development and operating company focused on creating sustainable communities has announced the LEED Silver certification for its renovated corporate headquarters in Charlotte.  The certification was awarded for the implementation of water and energy efficiency, use of recycled content and materials, indoor environment quality, including focus on natural daylight and views with floor-to-ceiling windows. The new corporate headquarters also includes an Innovations Lab, which encourages collaboration among employees.

Our new space reflects our commitment to innovation and place making, and inherent in that practice is environmental responsibility,” says Crescent CEO Todd Mansfield when accepting the USGBC plaque in a presentation ceremony at Crescent’s Charlotte office.

In other office news, leading commercial real estate services provider Cassidy Turley announced that Andritz Hydro Corp. renewed its 17,135-square-foot lease in University Research Park. Andritz Hydro, a global supplier of electro-mechanical systems and services for hydropower plants and a major player in the global hydraulic power generation market occupies more than half of the fifth floor of the 151,916-square-foot Class A Four Resource Square office building.  While the lender was represented in-house, Cassidy Turley represented landlord RAIT Financial Trust, an internally managed real estate investment trust.

Cassidy Turley also announced the sale of Edison Square, a 36,433 square foot mixed-use retail and office development in Concord, NC. TCA Edison, LLC, an ownership group lead by Trinity Capital Advisors and represented by Cassidy Turley in the transaction, sold Edison Square to Florida-based HCC-Edison Square, LLC for $8.65 million.

Located on 9.1 acres at Harris Road and Edison Square Drive NW, the 94 percent-leased asset consists of three buildings and additional land for further office and retail development.

Image courtesy of Crescent Communities

Canyon and NRP Partner Up for 298-Unit Apartment Project in South End

24 Mar 2014, 4:51 am

By Eliza Theiss, Associate Editor


Canyon Capital Realty Advisors LLC (Canyon Realty), the real estate direct investing arm of Canyon Partners LLC, has teamed up with NRP Group LLC in the development of a 298-unit apartment project in Charlotte’s South End, providing $12 million in preferred equity for the project.

The Class A mid-rise apartment project, dubbed Presidio, is set to break ground in the first quarter of 2014 on a 2.4-acre site at the corner of South Church Street and West Morehead Street. The location puts Presidio within the South End/Uptown submarket, the fastest growing apartment submarket within the city. Moreover, South End/Uptown experienced a five percent year-over-year rent increase in mid-rise apartments and closed 2013’s fourth quarter with a 95 percent occupancy rate. Presidio’s location also means swift access to Uptown’s employment and entertainment opportunities, thus promoting the live-work-play lifestyle that appeals to young professionals.

Presidio will start delivering units in the fourth quarter of 2015, all of which will feature high-end finishes such as granite and quartz countertops, top-of-the-line appliances, ten-foot ceilings and full walk-out balconies. Apartments will have one to three bedrooms, comprised in five residential stories atop a structured parking deck. Community amenities will include a fitness center, club lounge, swimming pool, garden courtyard and landscaped outdoor areas. It

Presidio represents the second partnership between Canyon Realty and NRP. Canyon provided NRP preferred equity in late 2012 for the development of the 326-unit Beacon430, a Class A multifamily project in downtown St. Petersburg, Fl.

NRP Group is a fully integrated multifamily developer, general contractor and full-service property management company It has developed and constructed over 28,000 residential units and currently manages over 15,000 units in more than 100 properties. Presidio will be its first Charlotte apartment community.

Image courtesy of Beacon430    

Liberty Property Trust Renews 196KSF Industrial Leases in Charlotte

7 Mar 2014, 7:13 pm

By Eliza Theiss, Associate Editor

Crosspoint V

Liberty Property Trust, an $8.4 billion office and industrial property REIT, has announced renewing multiple leases across its Charlotte portfolio, keeping its occupancy steady 99 percent. The four renewals total 195,800 square feet and regard spaces in the Crosspoint Center and Perimeter West industrial parks. Bryan Blythe, senior leasing representative, Carolinas Office, Liberty Property Trust represented the REIT in all four deals.

Rooms to Go Inc., a Florida-based furniture store chain, signed the largest lease, renewing for 117,000 square feet at the Crosspoint Center – Crosspoint III building at 3000 Crosspoint Center Lane. The retailer was represented by Warren Snowdon of Cushman & Wakefield | Thalhimer. Snowdon also represented Novitex Enterprise Solutions Inc. in its lease renewal for 16,000 square feet at 2701 Hutchinson McDonald Road, at a building known as Crosspoint V. According to Liberty Property Trust’s website, the 81.3 percent occupied Crosspoint V rents for an annual fee of $4.5 per square foot.

Clark Tire & Auto Inc., d/b/a Tires Now also renewed at the Crosspoint Center business park. Represented by Lester Osborn of Piedmont Properties, the auto parts retailer signed 38,400 square feet in the Crosspoint II building. Wheel Pros was also represented by Lester Osborn of Piedmont Properties in its 24,000-square-foot lease renewal in the Perimeter West business park, in Charlotte’s Airport/West industrial submarket.

According to Colliers International, the Airport/West industrial submarket ended the fourth quarter of 2013 with a $4.36 average rental rate and a 6.07 percent vacancy rate, experiencing a 1.25 percent quarter-to-quarter vacancy drop. The North industrial submarket, where the Crosspoint Center is located, had an average rental rate of $5.25. Vacancy was at 5.62 percents, boasting a 162 basis point decrease compared to the third quarter.

Image via Google Maps

Chart courtesy of Colliers International

Publix, Whole Foods Expanding in Metro Charlotte

5 Mar 2014, 1:14 am

By Eliza Theiss, Associate Editor

Publix at Ballantyne Town Center

Publix has officially broken into the North Carolina retail market with the opening of Publix at Ballantyne Town Center, its first location in the state. However, the 56,445-square-foot store at West Providence and Johnston roads, isn’t the retailer’s first location in the Charlotte Metropolitan Area. Publix already has two stores in greater Charlotte, both of which are located in the South Carolina. Publix on Gold Hill in Fort Mill and Publix at Cross Creek in Indian Land have been open since late 2012.

Publix at Ballantyne Town Center features a pharmacy, bakery, deli as well as produce, seafood, meat and floral departments. A drive-thru pharmacy and event planning services are also available at the location.

Publix is currently pursuing a rapid expansion in North Carolina, focusing on the greater Charlotte region. The Florida-based retailer will open locations in Charlotte at Shops at Southline and on York Road by late 2014 and on South Tryon by mid-2015. Additionally, by late 2014 it will open stores in Metro Charlotte communities like Cornelius, Mint Hill and Matthews adding further location Huntersville, Lake Wylie and Concord by the end of 2015. Metro Charlotte will also gain two additional stores in Rock Hill, S.C.: Publix at the Villages at Cherry Road Shopping Center set to open in March 2014 and a yet to be named store on Heckle Boulevard, which will open in 2015.

In other retail news, Whole Foods Market recently announced its third Charlotte location. The natural and organic foods retailer has signed a 40,000-square-foot lease in South Charlotte, in the Waverly mixed-use development at Providence and Ardrey Kell Roads. The supermarket should open in late 2016. Whole Foods currently has one operational location in Charlotte’s SouthPark and will be inaugurating its second in Huntersville, N.C.

Image courtesy of Publix via Facebook

Balfour Beatty to Renovate Student Housing High-rise at UNC Charlotte

26 Feb 2014, 4:11 pm

By Eliza Theiss, Associate Editor

Holshouser Hall current look

Balfour Beatty Construction has landed yet another contract at the University of North Carolina at Charlotte (UNC Charlotte), recently announcing being appointed construction manager at-risk for renovations at the university’s 202-bed Holshauer Hall, located in  the South Village area of the campus.   This the company’s third major contract at UNC Charlotte, following the successful completion of the university’s Student Union in 2009 and landing the contract for a newly-built 400-bed freshmen residence hall in 2013 in a joint venture partnership with Metcon Inc.

Balfour Beatty is set to execute renovations throughout the 100,135-square-foot 11-story residence hall, including replacing the mechanical, electrical and plumbing systems, as well as all the windows. A significant component of the renovation will include asbestos abatement at the 1973-built student housing. The elevator system will undergo a major upgrade, as will the building’s façade, which will be clad in brick. Some demolition work is also expected to take place. Upon completion the high-rise dorm will feature single and double rooms, lounge areas, meeting rooms, new patios, walkways and two resident advisor apartments.

Holshouser Hall Rendering

Stewart Engineering, another company with a successful track record at UNC Charlotte, will provide civil engineering services. Award-winning architecture and engineering firm Clark, Nexsen, Owen, Barbieri & Gibson, P.C., also known as Clark Nexsen, PC is another participant in the project.

Construction is set to kick off in May 2014 with a targeted completion for the summer of 2015, in time for the new college semester. The cost of the renovation project has yet to be disclosed.

Rendering courtesy of Balfour Beatty

Photo courtesy of UNC Charlotte 


Beacon Partners Taking Over East Morehead Street; LP Financial Scouting the Suburbs

12 Feb 2014, 7:30 pm

By Eliza Theiss, Associate Editor

1228 East Morehead

Charlotte-based full-service real estate company Beacon Partners has just increased its East Morehead portfolio, buying its fourth office asset on the Midtown street. The property, located at 801 East Morehead, was recently picked up for $2.85 million and is undergoing renovations set to complete by spring, the Charlotte Business Journal reports.

The building has around 7,000 square feet of vacant space leasing at $21.5 per square foot. Leasing will be handled by Beacon Partners. The property was acquired from a limited liability company managed by Jill Newton. According to real estate website PropertyShark.com, the office building was previously owned by 801 East Morehead LLC, an entity featuring a single family residential property address owned by Jill S. Newton.  According to the same source, the 31,545-square-foot, two-story Class B office asset had an estimated market value of $4,389,000.

Beacon Partners’ other East Morehead Street office assets include 500 East Morehead, a 43,904 -square-foot, three-story Class B property with onsite free parking, onsite property management, located within walking distance of a LYNX light rail station and 1228 East Morehead, a 14,000-square-foot, two-story Class B property, renovated in 2013. PropertyShark.com estimated the market values of these properties at $4,979,500 and $1,981,000, respectively. Beacon Partners owns, manages and leases five buildings in Midtown, totaling 185,000 square feet.

In other news, LPL Financial, the largest independent broker-dealer is the U.S. is shifting its focus from Uptown Charlotte to the suburb, the Charlotte Business Journal reported. The company, which already has a 150,000-square-foot at the Coliseum Centre, has been scouting the Queen City for a location that would provide it with an initial 400,000 square feet of office space, as well as the option to expand in the future. An expansion site adjacent to the Coliseum Centre, which could provide 400,000 square feet, Childress Klein Properties’ Lakepointe Corporate Center site as well as proposed built-to-suit facility in Ballantyne Corporate Park courtesy of the Bissell Cos. are reportedly now being considered.

Image courtesy of Beacon Partners

Investors Add New Charlotte Apartment Projects Amid Rising Rents

3 Feb 2014, 9:29 am

By Eliza Theiss, Associate Editor

The Mint

Spectrum Properties is kicking off construction on its newest Charlotte project, a 177-unit luxury apartment complex in Uptown, reports the Charlotte Business Journal, after it purchased a 1.4-acre site in January for $6 million. Dubbed The Mint, due to its proximity to a site that once held a U.S. Mint branch, the development is expected to complete in April 2015. Initially slated to break ground before the end of 2013, The Mint boasts Balfour Beatty as general contractor and Charlotte-based Housing Studio as architect.

According to previous coverage by the Charlotte Business Journal,  the seven-story development will comprise five residential floors featuring studio, one- and two-bedroom apartments atop two parking levels and amenities such as a pool, fitness center, sky terrace, luxury community lounge, multiple  courtyards, dog park, pet elevator and bikes for resident use. Rents are predicted to be lower than Uptown’s average due to The Mint’s wood frame structure and midrise design.

2014 Forecast by Marcus&Millichap

In other multifamily news, Atlanta-based Tivoli Properties Inc. is also eyeing Uptown for apartment development. According to Charlotte Business Journal, Tivoli plans to develop a 30 to 35 story high-rise at the corner of east Sixth and North College Streets that could feature as many as 330 units and street-level retail space.

The Charlotte apartment market continues to be an attractive location for investors, with Marcus&Millichap predicting a 3.5 percent rent increase in 2014,to an average of $911 per month,  after a 6 percent increase experienced in 2013. Although vacancies will rise for the first time in 2014 to 5.6 percent due to 5,500 units coming online, which will outpace absorption, the demand and supply ratio will remain in a healthy balance.

Rendering courtesy of Housing Studio

Chart courtesy of Marcus&Millichap

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

24 Jan 2014, 8:58 pm

By Eliza Theiss, Associate Editor

Woodlands Apartments

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

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

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

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

Image courtesy of Northmarq Capital

Luxury Apartments Sell for $59M in Charlotte

13 Jan 2014, 8:18 pm

By Eliza Theiss, Associate Editor

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

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

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

The community is managed by Greystar.

Image courtesy of Junction 1504 via Facebook

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

13 Dec 2013, 9:57 pm

By Eliza Theiss, Associate Editor

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

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

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

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

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

Click here for further Charlotte market data

Image courtesy of Cushman & Wakefield | Talhimer

Chart courtesy of Cushman & Wakefield | Talhimer

Cushman & Wakefield | Talhimer Lands 325KSF Leasing Assignment

9 Dec 2013, 7:04 pm

By Eliza Theiss, Associate Editor

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

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

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

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

Click here for further Charlotte market data

Image courtesy of Cushman & Wakefield |Talhimer

Chart courtesy of CBRE


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