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