CHARLOTTE, N.C. — Colonial Properties Trust (NYSE: CLP) has sold the 272,000-square-foot Metropolitan Midtown, a mixed-use property located in the heart of Charlotte, for $94 million in cash. The buyer was an institutional investor advised by JP Morgan Asset Management.
The mixed-use asset includes 170,000 square feet of office space and 172,000 square feet of retail. Metropolitan Midtown was 93.5 percent occupied as of Dec. 31, 2012. Office tenants include the Charlotte Mecklenburg Hospital, New Dominion Bank and Pappas Properties. The retail portion features anchor tenants Marshalls, Best Buy and Trader Joe’s.
According to the Charlotte Observer, Metropolitan Midtown is the redevelopment of Charlotte’s oldest enclosed mall, Midtown Square. Pappas Properties, Collet & Associates and Colonial Properties Trust developed the property.
Ryan Clutter, Chris Decoufle, Mike Burkard and Patrick Gildea of CBRE's Charlotte office represented the seller in the transaction.
“For core property acquisitions such as Metropolitan the buyer pool is extremely well-capitalized and typically will close all cash,” says Burkard. “Post-acquisition they may or may not place debt on the asset. Their ability to close without the need for financing helps streamline the acquisition process”
Charlotte-based Colonial Properties Trust is a real estate investment trust that owns a portfolio of multifamily, office and retail properties in the Sunbelt region. The company’s stock price closed at $21.65 per share on Thursday, up from trading at $20.91 per share a year ago.
— Brittany Biddy