The momentum of the Charlotte office market continued in the first quarter of 2019, as office rents rose for an eighth consecutive quarter and the city notched a major economic development win with the announcement that BB&T and SunTrust would merge, creating a new bank that will be headquartered in Charlotte. The news came on the heels of announcements late last year that Honeywell plans to relocate its corporate headquarters to the city and that LendingTree would expand its headquarters, creating 436 jobs over five years. The city’s economic strength has been fueled by a growing labor market that was led by the tech sector in 2018. Last fall, CompTIA’s 2018 Tech Town Index found that Charlotte is the No. 1 city for information technology workers when it comes to job opportunity and cost of living. At the time of the report, more than 44,000 IT jobs had been posted in Charlotte over the previous 12 months. That number is projected to grow by 11 percent over the next five years as Bank of America Corp., Wells Fargo & Co. and Ally Financial look to fill IT jobs at all levels. Office rental rates in Charlotte increased by 6.5 percent …
Student loan figures indicate a growing affordability problem in higher education. The Federal Reserve reports that student loan debt in the United States is almost $1.6 trillion today, with 42 percent of people who attended college — which represents 30 percent of all adults — incurring at least some debt from their education. With a focus on technology-based degree programs, the cost to attend college is rising. But it’s not just tuition that’s going up. According to College Board, the cost of housing exceeds the cost of tuition at four-year, public universities. For the 2017-2018 academic year, students paid an average of $9,970 for in-state tuition while room and board ran $10,800. “There’s a real need to get to the middle of the market and to build quality housing that students can afford,” says Joe Coyle, president of Michaels Student Living. Michaels Student Living is a specialized area of expertise within The Michaels Organization, a leading affordable housing developer in the United States. “Housing is a big part of what contributes to the high cost of attending college. We have to work together to find ways to mitigate this. It’s going to become more and more important.” While the student …
NEW YORK CITY — Joseph Tsai, co-founder of Chinese e-commerce giant Alibaba, has agreed to purchase Barclays Center, a 670,000-square-foot sports and entertainment arena that sits at the crossroads of Atlantic and Flatbush avenues in Brooklyn. The multi-purpose stadium is the home of the Brooklyn Nets NBA franchise and the NHL’s New York Islanders. Previous owner Mikhail Prokhorov, through his company Oneexim Sports and Entertainment Holding USA Inc., sold the arena to an entity controlled by Tsai for approximately $700 million, according to the New York Post. In a separate deal, Prokorov sold his 51 percent ownership in the Brooklyn Nets to Tsai, who purchased a 49 percent stake in the NBA franchise back in 2018. Multiple media outlets report the combined Nets and Barclays Center transactions will total more than $2 billion, bringing Tsai’s total investment to more than $3 billion. The transaction requires the approval of the NBA Board of Governors. Tsai is set to become the sole governor of the Nets franchise and owner of Barclays Center once the deal closes, which is expected by the end of September. “We are committed to maintaining Barclays Center’s iconic status by bringing together culture, community and entertainment for our …
NEW YORK CITY — Madison Realty Capital, a New York-based lender, has provided an $83 million loan to recapitalize and rebrand a 230-room hotel in Manhattan. The loan proceeds allowed the borrower, Long Island-based McSam Hotel Group, to retire the existing debt on the property and transition the hotel to another brand. The hotel is located across from the Rockefeller Center.
CAMBRIDGE, MASS. — Bulfinch, a Boston-based investment firm, has acquired a 193,000-square-foot office building in Cambridge. The office is located within the 27-acre Cambridge Discovery Park (CDP) development, and is 100 percent leased to market research company Forrester Research. With the acquisition, Bulfinch now owns all of CDP’s lab, office research and development facilities. People’s United Bank provided long-term financing for the acquisition.
ASHEVILLE, N.C. — Cushman & Wakefield has arranged the $71.5 million sale of The District, a 309-unit multifamily complex in Asheville. The property is located at 100 District Drive, three miles south of downtown Asheville. The District offers one-, two- and three-bedroom floor plans ranging from $1,248 to $2,700. Communal amenities include a 2,300-square-foot clubhouse with a fitness center, game room, lounge, business center and cyber café, heated saltwater pool, fenced dog park, picnic area with six grills and a car care center. Jordan McCarley, Marc Robinson and Watson Bryant of Cushman & Wakefield represented the seller, Flournoy Development, in the transaction. The buyer was not disclosed.
BETHLEHEM, PA. — A partnership between Lehigh University and Greystar has opened SouthSide Commons, a 426-bed residence hall located on the university’s campus in Bethlehem, about 50 miles northwest of Trenton. The community offers fully furnished studio, two-, three- and four-bedroom units. Atkin Olshin Schade Architects designed the project, construction of which began in May 2018 and was completed July 2018.
CHARLOTTE, N.C. — CBRE has provided a $39.7 million Freddie Mac acquisition loan for Arbor Steele Creek, a 384-unit apartment community in southwest Charlotte. The borrower, a joint venture between Charleston, S.C.-based Blaze Partners and Acre Valley Real Estate Capital, plans to continue interior and exterior renovations. The previous owner, a joint venture between Blaze Partners and True North Management Group, acquired the property in 2017 and began renovations. The complex comprises 16 three-story buildings. Communal amenities include a swimming pool, fitness center, business center, picnic areas with grilling stations, pet park, playground and a clubhouse.
ATLANTA — Savlan Capital has acquired six office buildings totaling 289,433 square feet within Camp Creek Business Center, a 400-acre business park in south Atlanta. Hollywood, Fla.-based Savlan bought the property from Indianapolis-based Duke Realty for $111.25 per square foot. The office buildings are located at 1000, 1100, 1200, 1400, 1800 and 2000 Centre Parkway, five miles west of Hartsfield-Jackson Atlanta International Airport. Duke Realty is developing Camp Creek, which comprises 2.9 million square feet of existing industrial and office buildings with the capacity for an additional 2 million square feet of development. The six buildings were 79 percent leased at the time of sale to tenants including Sto Corp., DoverStaffing, Hopebridge, Jaguar Land Rover Automotive North America, Keller Williams and Primerica.
SOMERSET, N.J. — Cushman & Wakefield has negotiated two office leases totaling 4,920 square feet in Somerset, a city located about 40 miles east of New York City. The offices are situated within 200 Cottontail Lane, a 208,000-square-foot Class A office property. August eTech signed a 3,230-square-foot headquarters office lease, and Tekcon Construction signed a 1,800-square-foot regional office lease. Paul Giannone, Todd Elfand, Kevin Carton and Joe Vacca of Cushman & Wakefield represented the landlord, The Winter Organization, in both lease negotiations. Carolyn Sica of CBRE represented eTech.