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

Regency Buys Interest in Philips Place; 476-Unit Apartment Community Sold in $95M Portfolio

By Eliza Theiss, Associate Editor

Regency Centers, a national owner, operator and developer of grocery-anchored and community shopping centers, acquired four such complexes in November 2012 at a total purchase price of $188.5 million. Among the properties picked up is Charlotte’s Philips Plaza—a 133,059-square-foot upscale retail center located at the intersection of Fairview Road and Cameron Valley Parkway in the affluent SouthPark submarket.

Philips Place is 99 percent leased to clients that include Dean & Deluca, Brooks Brothers and Regal Cinemas. According to a press release, Regency purchased a 50 percent interest in the complex for $27.7 million.

The company also purchased Uptown District—a 148,638-square-foot urban center in San Diego—for $81.1 million, as well Sandy Springs Plaza—a 115,794-square-foot shopping center in Atlanta. The latter was picked up for $35.3 million.

Regency’s fourth purchase had a price tag of $16.7 million, yet the company only ended up paying $3.3 million. This is because only a share of Village Plaza—a neighborhood center located in Chapel Hill, N.C.—was bought. Regency also shed its interest in three properties for $49.7 million.

In other news, Elco Landmark Residential REIT, an owner and operator of multifamily properties located throughout the southeastern United States, announced entering a private label partnership with Timbercreek Asset Management. The partnership purchased a four-property multifamily portfolio from Colonial Properties Trust for $95.4 million. The 1,380-unit portfolio is collectively 95 percent occupied.

Among the purchased properties is the 476-unit Heatherwood Apartment Homes in Charlotte. Located at 5931 Providence Rd., the 1980-built apartment community boasts two pools, a 24-hour work-out facility, business center, children’s play area and two tennis courts.

According to a press release, Elco will renovate and re-brand the entire portfolio. Estimated to take about 10 months, the renovation will include upgrades such as adding dog parks, cafés, business centers and Wi-Fi technology. Clubhouses will be remodeled and interior lighting is set to be replaced, this along with cabinet doors, kitchen and bath floors, and carpeting. New appliances will also be added.

The portfolio’s other assets include the 229-unit Colonial Village at Canyon Hills in Austin, Texas, the 250-unit Colonial Village at Highland Hills in Chapel Hill, N.C., and the 425-unit Autumn Hill Apartments in Charlottesville, Va.

Photo courtesy of Heatherwood Apartment’s Google+ profile

Crescent Resources Announces $36M Student Housing Project

By Eliza Theiss, Associate Editor

Charlotte-based real estate development company Crescent Resources recently announced its new Circle University City project—a 546-bed student housing complex near the University of North Carolina (UNC) Charlotte campus. Construction on the $36 million community is set to start by December 23.

The ambitious project represents an emerging trend in student housing—communities that offer students upper-echelon amenities and green features. The 187-unit community will offer features such as a salt-water pool, tanning beds and outdoor fire pits.

The community’s design will draw on architectural elements from the UNC Charlotte campus. As such, residents will enjoy generous living areas and open floor plans. Recycled materials will be used in the development process. Solar power will also be implemented, along with other, yet-to-be-announced environmentally sustainable elements.

“Circle University City will offer a unique student living experience that isn’t typically found in campus housing. The community’s targeted amenities will provide a great environment for both study and recreation,” said Ben Collins, regional director for Crescent Resources, in a press release.

Financing for the project is being provided by equity from Crescent Resources and a construction loan from Regions Bank. Crescent also partnered up with Charlotte-based Carbon Properties LLC—a real estate development company specializing in providing integrated sustainable development initiatives to reduce a project’s carbon footprint.

Charlotte-based architecture firm BeachamBunce+Manley Architecture (BB+M) is also signed on to the project, as is local interior design firm Vignette Interior Design. LandDesign was selected as civil engineer and landscape architect for the project, while Adolfson & Peterson Construction was named general contractor. Greystar will handle property management.

The project was prompted by UNC Charlotte’s soaring enrollment, which is expected to continue in the next few years. Due to record number of students choosing the university, campus housing has become an issue. Circle University City will relieve some of the pressure on housing around the campus, as the wave of units will be available in time for the fall 2014 semester.

Photo courtesy of LandDesign

Chart courtesy of Marcus &Millichap

$34M Medical Facility Expansion Completed; Cole Corporate Purchases $42M Office Building

By Eliza Theiss, Associate Editor

The Catawba Valley Medical Center has announced the dedication of the new Pavilion at Catawba Valley Medical Center (CVMC) in Hickory, N.C.—marking the completion of a $34 million project. Located at 810 Fairgrove Church Rd., the 258-bed Catawba Valley Medical Center recently underwent a $34 million expansion and renovation, seeking to upgrade comfort, technology and cost-effectiveness.

The project included the renovation of surgical suites as well as the recently dedicated Pavilion, housing the Comprehensive Cancer Center and the Center for Women & Children.

The Comprehensive Cancer Center houses the Inpatient Oncology Unit and the relocated Infusion Center, now equipped with personal entertainment options and lounge chairs, while the Center for Women & Children houses the expanded 15,000-square-foot Level III Neonatal Intensive Care Unit (NICU) for critically ill infants.

The improved NICU, featuring private rooms, is the only such facility in the area. An upgraded Birthing Center with sizeable, up-to-date labor and delivery suites is also available onsite. $3.6 million of the necessary $34 million were covered by community donations.

Catawba Valley Medical Center in Hickory, N.C. is the region’s largest non-profit, public healthcare hospital. It provides both physical and mental health care services, while also serving as a center for health education, wellness services, preventive medicine and acute care, receiving no direct funding from taxes.

In other news, Charlotte Raleigh Citybizlist reports that Cole Corporate Income Trust Inc. is expected to purchase a 284,010-square-foot building in Charlotte for $42.171 million. Though the report does not specifically name the property, it is identified as the building leased by Compass Group North America—the food service management and support services company affiliated with the U.K.-based Compass Group PLC. Compass Group North America’s headquarters is listed at 2400 Yorkmont Rd. in the Coliseum Centre area.

Furthermore, in late 2011, Citybizlist reported Compass renewing and expanding a 12.5-year 214,507-square-foot lease at Coliseum Centre One and Two. It can be concluded that Cole Corporate is purchasing one of the Class A office buildings in the six-building, 979,000-square-foot Coliseum Centre, purchased earlier this year by Cargill affiliate CarVal Investors LLC and Vision Equities. The deal is expected to close by the end of December 2012.

Photo courtesy of Catawba Valley Medical

Chart courtesy of Colliers International

Crescent Develops $33M Luxury Apartment Community in Charlotte

By Eliza Theiss, Associate Editor

Crescent Resources is continuing its expansion in Charlotte’s multifamily market. For its newest project, the Charlotte-based developer has partnered up with Global Growth Trust Inc., a non-traded REIT focused on providing capital appreciation for investors. The result of this partnership will be Circle Alexander Village—a $33.6 million luxury apartment community that will rise on 18.6 acres in the northeastern part of Charlotte.

The 320-unit luxury garden-style community will feature one-, two- and three-bedroom apartments, the first of which will be available in fall of 2013. Units will be done in the style of vernacular classical revival architecture.

Circle Alexander Village will feature top community amenities—a pool plaza that will include a resort-style saltwater pool; a sundeck; lounging areas; bocci courts; an outdoor fireplace; and an outdoor kitchen. The community clubhouse will boast a business center, cyber café, gaming area, clubroom and a catering kitchen.  The apartment complex will encourage a healthy lifestyle with its state-of-the art gym, yoga lawn, dog park, walking trail and pond.

“The Circle brand represents upscale apartment living with environmentally sensitive attributes and social programming with the goal to build a strong community and enhance our residents’ lives,” declared Ben Collins, regional director for Crescent’s multifamily division, in a press release. And true to its eco-consciousness, Circle Alexander Village will pursue not only LEED certification, but an Audubon International Signature Sanctuary designation as well.

The Preston Partnership has been chosen as architect for the project, while LandDesign has been designated as landscaping architect and civil engineer. The construction lender is Regions Bank, while equity investments will be made by both parties of the partnership. Global Growth Trust will put forward 60 percent, and Crescent Resources will contribute the remaining 40 percent.

Circle Alexander Village is located within University Research Park near I-85, providing convenient access to both Downtown and the Greater Charlotte Area. The apartment community is only the first phase in a 62-acre mixed-use project Crescent Resources plans to develop.

Circle Alexander Village represents the second partnership between CNL Financial Group affiliate Global Growth Trust and Crescent Resources after partnering on Circle Crosstown—the $37 million apartment community in Tampa, Fla. currently under construction.

Crescent Resources’ 360-unit Circle at South End sold earlier this year for $74 million.

Photo courtesy of Circle at South End – Charlotte’s Facebook profile

Chart courtesy of Marcus & Millichap 

Hines Continues Green Streak in Charlotte with Carillon LEED Gold Certification

By Eliza Theiss, Associate Editor

International real estate firm Hines reiterated its commitment to sustainability, announcing the LEED Gold Certification of the 24-story Carillon office tower in downtown Charlotte. The announcement came hot on the heels of news that Hines was selected by the North Carolina Department of Transportation (NCDOT) as master developer for the $200 million Gateway Station—the multi-modal transit center anchoring the 20-acre transit-oriented and mixed-use development set to re-energize uptown Charlotte.

Purchased by Hines in 2007, the 24-story corporate office tower has since received the ENERGY STAR® energy performance label yearly. Its current ENERGY STAR® rating of 88 means that the property is 38 percent more energy-efficient than an average office building, generating a $0.66 per-square-foot energy cost saving. All in all, the Carillon’s energy efficiency saves greenhouse gases equivalent to the annual output of 554 passenger vehicles.

Among the green features and practices that earned Carillon Gold under the U.S. Green Building Council’s LEED for Existing Buildings Rating System are its energy-efficient lighting with reduced mercury content, low-flow water fixtures, an 84 percent waste diversion rate recycling program, the implementation of eco-friendly cleaning practices and products and the Hines signature Green Office for Tenants program, which assists tenants in reducing their environmental footprint.

“Energy savings, equipment efficiencies, water conservation and recycling programs directly benefit the tenants in terms of lower operating costs,” said Hines General Manager Michael Delev in a press release. “In addition, LEED certification strengthens the unique public-private collaborative efforts of the Envision Charlotte program, whose goal is to spur sustainable behaviors and reduce defined environmental resource use and related cost by up to 20 percent within five years in the Uptown Loop.”

Located at 227 W. Trade St. in Charlotte’s downtown submarket, Carillon offers 470,726 square feet of leasable area. Tenants include the U.S. Attorney’s Office, Crescent Resources, Greer & Walker and IBM, among others. Designed by Thompson, Ventulett, Stainback & Associates, the office tower features neo-Gothic architectural elements and was completed in 1989.

Photo courtesy of Uptown Charlotte’s Facebook page

Chart courtesy of Marcus & Millichap

Wesley Village Fetches $45.8M

By Eliza Theiss, Associate Editor

KBS Legacy Partners Apartment REIT has announced the purchase of Wesley Village for an estimated price of $45.8 million. “The KBS Legacy Partners team has identified and acquired several well-performing assets with solid growth potential, and Wesley Village is no exception,” declared chief executive officer of KBS Legacy Partners Apartment REIT, W. Dean Henry. “We are excited about the opportunity to own a quality asset in a city that continues to show strength and stability.”

Located at 2715 Wet Stone Way, Wesley Village sprawls on 14.8 acres near Highway 27 and Interstates 77 and 277, five miles west of Charlotte Douglas International Airport. The 301-unit high-end apartment community was constructed in 2009 and features 33 floor plans.

Community amenities include a 10,000-square-foot clubhouse, yoga studio, 24-hour club grade fitness center, resident gaming center equipped with Wii and Xbox 360, billiards room, Starbucks Java Bar and resident business center. The courtyard features a saltwater swimming pool with poolside cabanas, as well as a wet bar, custom grilling station, outdoor fireplace and conversation area.

The controlled access community has a valet trash service program and community recycling center, and ccess is provided to the Stewart Creek Greenway. Furthermore, the community offers a mountain bike check-out program and bark park. Elevators and WiFi access are also provided, as is an onsite guest suite.

The apartment complex features 33 unique floor plans, according to a press release. Apartments feature nine- to 20-foot ceilings, over-sized bedrooms, over-sized windows with plantation blinds, large walk-in closets, private terraces, sunroofs, European kitchens with stainless steel appliances, granite countertops/island kitchens, washers and dryers. Urban lofts and over-sized master suites can also be found, as well as garages and the possibility for extra storage.

The apartment complex was 93 percent occupied at the time of sale.  

Newport Beach, Calif.-based KBS Legacy Partners Apartment REIT is a joint venture sponsored by KBS Capital Advisors LLC (KBS-CA) and Legacy Partners Residential Realty LLC (LPRR) of Foster City, Calif. The purchase of Wesley Village brings the non-traded real estate investment trust’s portfolio to 1,752 units.

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Photo courtesy of Wesley Village Apartments’ Facebook page

Chart courtesy of Marcus & Millichap

Parkway Properties Picks Up NASCAR Plaza for $100M

By Eliza Theiss, Associate Editor

Orlando, Fla.-based Parkway Properties has announced entering a purchase and sale agreement for the acquisition of NASCAR Plaza, a 395,000-square-foot office tower in Charlotte’s central business district. Parkway Properties will be purchasing the marquee office tower from a joint venture between Trinity Capital Advisors and Rubenstein Partners for an estimated $100 million.

Located at 550 South Caldwell St., the 20-story, 395,000-square-foot Class A office tower is a landmark of Charlotte’s downtown area.  NASCAR Plaza opened in May 2009 next to the NASCAR Hall of Fame, developed by Indianapolis-based Lauth Group Inc. Among the tower’s amenities is a state-of-the-art fitness center featuring Cybex and Expresso Interactive Cardio equipment, as well as a full-service sundries shop offering Starbucks coffee, grab-and-go lunches and dry cleaning.

One of the most attractive features of NASCAR Plaza is its LEED Silver certification. One-third of the office tower was manufactured using recycled materials and is equipped with energy-efficient air conditioning that does not employ CFC refrigerants or any other chemicals for cooling. Furthermore, during development, 75 percent of construction waste was diverted from landfills. NASCAR Plaza is also resource efficient: 35 percent of its electricity is provided by renewable resources, and it uses 30 percent less water than a conventional office building.

NASCAR Plaza was created by Pei Cobb Freed & Partners. The property is currently 88 percent leased, with an average rent of $25.61 per square foot. Its tenant roster includes Chiquita Brands International, while the NASCAR headquarters takes up 139,000 square feet leased through May 2012.

“The purchase of NASCAR Plaza represents another off-market transaction that enables us to expand in one of our key target submarkets with a high-quality asset,” declared Parkway Properties President and CEO James R. Heistand.  “NASCAR Plaza has a strong tenant base and is the headquarters for several well-known companies, and we expect to create additional value through leasing and rent growth in a submarket that we believe will outperform during a recovery.”

The office tower is expected to generate an estimated 7 percent cash net operating income yield in 2013. Taking full ownership of the property, Parkway will also assume the first mortgage by the estate with the intent of amending and restating the loan to current market rates from its current outstanding balance of $42.3 million, 4.7 percent interest rate and maturity date of March 30, 2016.

Parkway will fund its share of equity with excess cash and borrowings from its revolving credit facility. Closing is expected by the end of 2012.

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Photo courtesy of GoogleMaps

Chart courtesy of Marcus & Millichap

$25M Science Center Breaks Ground at Johnson C. Smith University

By Eliza Theiss, Associate Editor

As Charlotte continues to grow, so do its educational facilities. A prime example of this is Johnson C. Smith University, which has just broken ground on a new 62,000-square-foot science center. The project is funded by a $25 million Duke Endowment grant.

The new facility will be located on campus between the James B. Duke Memorial Library and the Jane M. Smith Memorial Church, and at three stories tall and 62,000 square feet in surface area, it will be the largest building on campus. The science center will house a 250-seat lecture hall/auditorium, a common atrium, teaching labs and offices. Gantt Huberman Architects are responsible for the design.

In a press release, Dr. Ronald L. Carter declared: “The JCSU leadership has worked for months with architects to create an optimal learning environment for interaction among students, faculty and visitors.”

Programs to be housed in the new teaching facility will be part of the College of Science, Technology, Engineering and Mathematics (STEM) and will include electronics, cyber security, robotics, medical and bioinformatics, renewable energy and homeland security, analytics, and bioinformatics.  Thanks to the facility’s size, the university will be able to increase admission numbers from 300 to 450 students by 2016.

Furthermore, the center will also be available for community uses such as STEM summer camps, think tanks, training and mentoring.

The Science Center is the university’s second major expansion project this month after the early October inauguration of the $25 million Mosaic Village student housing in Charlotte’s historic West End neighborhood.

Located at 1635 West Trade St., the 124,000-square-foot building contains 80 apartment-style units designed to house 300 students, as well 7,500 square-feet of street-level retail space and a parking garage. Units rage from two-bedroomers to four- and five-bedroom apartments and are fully furnished.

Some of the amenities available onsite include in-suite washer/dryers, in-suite kitchens, study rooms, gym facilities and sitting areas, as well as a rooftop garden with sweeping views of Uptown Charlotte. The retail space comprises a convenience store, an express restaurant and a barber shop.

Mosaic Village was funded by a public-private partnership between Johnson C. Smith University, the City of Charlotte and the Griffin Family of Griffin Brothers Tires Inc. Founded in 1867, Johnson C. Smith University integrates liberal arts with science, technology and business studies in 23 fields of studies offered to over 1,600 students.

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Photo credit:  Johnson C. Smith University’s Facebook page

Two Major Retail Projects in Works for Charlotte Metro

By Eliza Theiss, Associate Editor

It seems this was the week to announce significant retail development for greater Charlotte, with not one, but two important players of the retail industry expressing their intent to build in the Queen City. Tanger Factory Outlet Centers Inc. was the first to make its announcement, stating that it plans to construct a dynamic 90-store outlet center.

Tanger Outlet Center Charlotte will be located eight miles southwest of uptown Charlotte at the interchange of I-485 and Steele Creek Road (NC Highway 160). The outlet center will have a total surface area of 350,000 square feet, with plans of a 50,000-square-foot future expansion. The store will be home to over 90 designer and brand name stores, offering value priced merchandise directly from manufacturers.

“This project represents an approximately $80 million investment by Tanger in the growing Charlotte community and the great state of North Carolina,” declared Steven B. Tanger, president and CEO of Tanger Factory Outlet Centers Inc.

Tanger will be developing its newest project in partnership with Childress Klein Properties and Steele Creek Limited Partnershi. The latter is a long-time owner of land in Steele Creek and was founded by local Sarah Belk Gambrell, who will develop ancillary uses in the vicinity of the outlet center. The project will kick off upon receiving the necessary governmental approval and is slated to finish in 2014.

Tanger Outlet Center Charlotte will be the company’s fourth development in North Carolina. The retail center is expected to generate $10 million in annual sales taxes for Mecklenburg County. It will also add 900 full- and part-time jobs upon completion, as well as 300 construction jobs during development. The chosen site for the project, between I-85 and I-77, is located near the Steele Creek community, one of Mecklenburg County’s most rapidly growing residential areas and one of the most highly employed.

The second retail project to be announced was Charlotte Premium Outlets, a development that is the result of a partnership between leading retail real estate company Simon Property Group Inc. and Baltimore-based commercial real estate development firm Paragon Outlet Partners.

The planned 400,000-square-foot project will be home to some 100 designer and brand name stores.  Charlotte Premium Outlets will be located at Interstate 485 and Idlewild Road in Stallings, N.C. The retail center will break ground in spring 2013 and is expected to open in 2014.

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Photo credit: Tanger Factory Outlet Centers, Inc. via PRNewswire

Chart courtesy of Marcus & Millichap

$36.8M Facility to Be Added to North Carolina Data Center Corridor

By Eliza Theiss, Associate Editor

Merely weeks after Apple Inc.’s purchase of 200 acres in Catawba County, N.C. to consolidate its data center operations comes the announcement of another major investment for North Carolina’s growing information technology sector. According to information released by the Catawba County Economic Development Corporation, international retail chain Bed Bath & Beyond Inc. has chosen to establish a data center in Claremont.

The Union, N.J.-headquartered domestics merchandise and home furnishings retailer will locate its data center in the Claremont International Business Park in the 48,000-square-foot Center Point shell building developed by Charlotte-based Niagara Ventures LLC.

“The shell building developed by Niagara Ventures provided a great building option for Bed Bath & Beyond,” said Scott Miller, president of the Catawba County Economic Development Corporation. “This is just another example of when our community has the right product, the business will come.”

Bed Bath & Beyond will invest at least $36.5 million to set up the data center and is expected to employ at least seven by the end of 2018, with salaries above the average annual income for Catawba County.

“The addition of another data center in Catawba County helps solidify our presence as the [North Carolina] Data Center Corridor,” declared Kitty Barnes, chair of the Catawba County Commissioners. “Data centers are attracted to our area for good reasons, such as low-cost electricity, abundant water and existing telecommunications. “

A performance-based grant that will be provided by both the city of Claremont and Catawba County might be another reason. Incentives will be equal to 50 percent of new net taxes received on real estate for 10 years and 60 percent of personal property new net taxes for 10 years, but not exceeding $955,722 when combined.

Founded in 1971, Bed Bath & Beyond Inc. is a publicly traded Fortune 500 and Forbes 2000 company.

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Photo credit: Google Maps