North Carolina

CONCORD, N.C. — An affiliate of Yale Realty Services Corp., in partnership with an international family office, has acquired Afton Ridge, a 294,617-square-foot shopping center located in Concord, roughly 25 miles northeast of Charlotte. Mike Burkard and Steve Shields of CBRE represented the undisclosed seller in the $49.2 million sale. Robert Altman of Altman Warwick Inc. and Bat Barber of Medalist Capital arranged a $29.6 million acquisition loan through MetLife on behalf of the buyer. A Super Target anchors Afton Ridge, which was 97 percent leased at the time of sale. Other tenants at the center include HomeSense, Marshalls, Burlington, Haverty’s Furniture, PetSmart and a Dick’s Sporting Goods clearance store, operating under the Going Going Gone! brand.

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SOUTHERN PINES, N.C. — BWE has arranged a $24.3 million construction loan for Phase II of Morganton Park South, a retail development underway in Southern Pines. Situated near the Pinehurst Golf Resort, Phase II is fully preleased and will house the region’s first BJs Wholesale Club. Phase I of Morganton Park South includes tenants such as Target, Dick’s Sporting Goods/Golf Galaxy and HomeGoods. Daniel Rosenberg and Logan Petersmeyer of BWE originated the interest-only loan on behalf of the borrower, Midland Atlantic Properties. The loan was underwritten with a fixed interest rate and an 80 percent loan-to-cost ratio.

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CHARLOTTE, N.C. — Cushman & Wakefield has arranged a 69,271-square-foot lease at 550 South, a 394,000-square-foot office tower located in Uptown Charlotte. Truist Insurance Holdings, the fifth-largest insurance brokerage firm in the United States, will now occupy the 14th, 15th and 16th floors at the property. Cousin Properties is the landlord of 550 South. Keith Bell and Matt Bowen of Cushman & Wakefield represented Truist in the lease negotiations. Charlotte-based Truist Financial Corp. is the parent company of the tenant, but recently reached an agreement to sell its remaining stake in Truist Insurance Holdings.

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LINCOLNTON, N.C. — Crescent Communities is underway on the construction of AXIAL Midway 321, a new industrial project situated within Lincoln County Industrial Park in Lincolnton, approximately 35 miles northwest of Charlotte. Upon completion, the development will comprise a 175,000-square-foot rear-load building, as well as 133 car parking spaces and 17 trailer parking spaces on a 25-acre lot. The building will feature 32-foot clear heights, 50 dock-high doors, 2,800 square feet of speculative office space, LED warehouse lighting and multiple pit levelers. The project team includes general contractor Myers & Chapman, DMA Architecture, engineer Thomas & Hutton and Carter Bank. Matt Treble and Fermin Deoca of Cushman & Wakefield will manage leasing at the property. A timeline for construction was not disclosed.

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By Lisa Narducci-Nix of Drucker + Falk As a third-party manager of more than 7,000 multifamily units in the Raleigh-Durham metropolitan area, the question we’ve been asked the most lately is, “What do you see for 2024 in terms of rent growth and occupancy?” Alongside other concerning variables such as liability insurance and payroll, rent and occupancy performance seem to be front and center in most conversations.  Rents have notably cooled from the unprecedented growth enjoyed most of 2022. According to a multifamily market report on Raleigh by Yardi Matrix, rent growth was negative 0.2 percent in third-quarter 2023 compared to the second quarter and down 1.5 percent on a year-over-year basis.  We expect that those numbers represent a market correction of sorts from the unsustainable growth in 2022 as employment and population growth remain strong in the Raleigh-Durham market. In recent headlines, Apple is planning to begin its first phase of its 281-acre office campus, which will add 3,000 jobs at full build-out, and VinFast will begin developing its $4 billion electric vehicle plant in nearby Chatham County in 2025.  Additionally, the U.S. Census Bureau found that the population of the Raleigh-Durham MSA grew by 2 percent in 2021 …

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ARDEN AND ASHEVILLE, N.C. — Trilogy Investment Co. will develop three rental townhome communities in metro Asheville. Located in the city of Asheville and the unincorporated community of Arden, the Rêve Communities-branded properties will total 267 units across 35 acres. Amenities at each community will include 24-hour maintenance, valet trash, a clubhouse, pool, playground and a dog park. Construction is scheduled to begin in the third quarter of this year, with preleasing expected to begin in mid-2025.

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By Derek Jacobs of Avison Young Through the financial uncertainty and confusion of the past four years, Raleigh-Durham has stood out as an exemplary industrial market that has strengthened in economic diversity and stability despite greater national and global market trends and challenges.  The outlook for Raleigh-Durham is very positive thanks to local and state governments that support business, an excellent central East Coast location and a market environment where industrial demand heavily outweighs supply. Triple-net rents in Raleigh-Durham grew by nearly 39 percent since first-quarter 2020, while total vacancy has remained below 4 percent.  The most affordable Class C product has an exceptionally low vacancy rate of 2.7 percent due to lower rent costs outweighing the opportunity costs of moving into a nicer, newer building that will be more expensive in most cases.  The newest and most costly Class A industrial product in Raleigh-Durham has also shown strong demand, with a vacancy rate (5.7 percent) lower than the vacancy rate for all industrial product classes combined across the country (6.1 percent). Industrial occupiers and residents in Raleigh-Durham work, do business in various industries and provide services that supply further market growth. Around half of the industrial property in Raleigh-Durham …

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CHARLOTTE, N.C. — Madison Communities has obtained an $80 million loan for the construction of a multifamily community in the Lower South End (LoSo) neighborhood of Charlotte. Patterson Real Estate Advisory Group arranged the loan through META Real Estate Partners and Bank of America on behalf of Madison Communities. Situated adjacent to Olde Mecklenburg Brewery (OMB), the unnamed community will comprise 320 units and will include dedicated parking for brewery patrons. A timeline for the project was not disclosed. Additionally, parent company Madison Capital Group will relocate its corporate headquarters to a property directly next to OMB. 

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CHARLOTTE, N.C. — Alliance Residential Co. has opened Broadstone Craft, a 297-unit apartment community located at 1015 N. Alexander St. in Charlotte’s Optimist Park neighborhood. The property is situated adjacent to Birdsong Brewery and a stop on the Parkwood LYNX Blue Line. Cline Design Associates and interior designer LS3P designed the property with a 1980s aesthetic that incorporates elements of craft beer culture. The property’s public spaces include a two-tap kegerator system serving cold brew and kombucha for residents, a custom retro TV wall and beer barrel seating booths. Other amenities include a resort-style saltwater pool with two grilling stations and an exterior courtyard featuring a beer fermentation tank, as well as coworking and private focus rooms, a mailroom with 24-7 package access, bike storage, electric vehicle charging stations and a fenced pet park. Broadstone Craft offers a mix of studio, one- and two-bedroom apartments averaging 716 square feet in size. Monthly rental rates range from $1,471 to $2,866, according to the property website.

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CHARLOTTE, N.C. — CBRE has arranged the $11 million sale of Scarlet Oak, an office/industrial flex building located at 8700-8702 Red Oak Blvd. in southwest Charlotte. A joint venture between Somerset Properties and ABR Capital Partners acquired the property. Built in 1981 and renovated in 2022, the property comprises 81,118 square feet and was 84 percent leased at the time of sale. Part of Griffin Partners’ The Oaks, a four-building industrial portfolio, the building features 245 parking spaces and 17 dock-high, drive-in doors. Recent upgrades to the property include a new outdoor amenity space, exterior improvements, new paint, a new backflow preventer and a newly resealed and restriped parking lot. Patrick Gildea, Robert Hardaway and Matt Smith of CBRE represented the seller in the transaction. Prior to the sale, Alek Salfia, Joe Franco and Kris Westmoreland of CBRE managed leasing at the property on behalf of the seller.

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