CHICAGO — Chicago-based Brennan Investment Group LLC, in a joint venture with Arch Street Capital Advisors LLC, has acquired a 2.3 million-square-foot industrial portfolio located throughout four states in a sale-leaseback transaction. The sales price was not disclosed. The four buildings were net-leased back to the seller, BlueLinx Corp., a building and industrial product distributor. The buildings are located in Boston, Raleigh-Durham, Atlanta and Washington, D.C. Since 2011, Brennan and Arch Street have acquired more than $1 billion of single-tenant, net-leased industrial assets.
WAKE FOREST, N.C. — Charlotte-based Moseley Real Estate Advisors is underway on 981 Crossing, a 20,494-square-foot retail development in Wake Forest, roughly 18 miles northeast of Raleigh. The project is located off of Capital Boulevard, at the Target entrance. The center will house tenants such as Starbucks Coffee, Chipotle Mexican Grill, Kay Jewelers, Firehouse Subs, Mattress Warehouse and Freddy’s Frozen Custard & Steakburgers. John Lambert of Moseley Real Estate Advisors is handling leasing for the remaining 2,000-square-foot parcel. The center is slated for completion in June, with tenants expected to open in September.
Eight years into the recovery, Raleigh-Durham’s office market conditions remain decidedly in favor of landlords, but increased construction following years of limited development activity is at last providing much needed new leasing opportunities for tenants. While a combination of factors, including new construction, drove office vacancy higher by the second half of 2017, the market began the year with the tightest Class A leasing market witnessed since the dot-com boom. Class A vacancy bottomed out in the first quarter of 2017 at 9.1 percent, down from a cyclical peak of 17.6 percent in the third quarter of 2009, and the lowest level since fourth-quarter 2000. Class A vacancy rose to 11 percent in the third quarter of 2017 as a wave of new deliveries hit the market. Total vacancy ended the third quarter at 13.5 percent, up 70 basis points year-over-year. It is worth noting that this figure includes a handful of large, formerly corporate-owned facilities in the Interstate 40/Research Triangle Park (RTP) submarket. Originally constructed for single tenants such as GlaxoSmithKline, Dupont and Reichold, these facilities are likely to need substantial retrofitting to achieve lease-up. While they are certainly a factor in the market, they are not an option …
CHARLOTTE, N.C. — Childress Klein, in partnership with Crosland Southeast and the B. Frank Matthews II Family, will break ground next month on The Nexus, a 154,000-square-foot, creative office building in south Charlotte. The six-story building will be the second creative office building at Waverly, the joint venture’s master-planned mixed-use development. The Remi Group, an equipment maintenance management provider, has preleased 31,000 square feet at The Nexus for its new corporate headquarters. Ben Speir of Cherry & Associates represented The Remi Group in the lease negotiations, while Travis Hart and Jenny Fowler represented Childress Klein internally. The Nexus will feature exposed ceilings, collaborative office space, a covered parking deck, bike storage, outdoor Wi-Fi-enabled meeting space and a connection to The Yard, Waverly’s master-planned park. In addition, the developers are seeking LEED certification. Wells Fargo will provide construction financing for the project. The design team includes general contractor Shelco and architect Rule Joy Trammell Rubio. The first creative office building at Waverly, The Hub, was delivered in August 2017. NN Inc., an industrial company, plans to relocate its global corporate headquarters to The Hub. Childress Klein has also signed leases with tenants including Esri, Horizon Investments, Axene and Tokai Carbon GE LLC. …
CHARLOTTE, N.C. — Capstone Apartment Partners has arranged the $24.3 million sale of Arcadian Village, a 348-unit apartment community in Charlotte. Lerner & Co. Real Estate sold the property to an investment group with offices in New York and Miami. Brian Ford, Alex McDermott, Ron Corrao and Austin Green of Capstone brokered the transaction. The new owner plans to improve the community with added amenities and interior renovations. Constructed in 1970, Arcadian Village features two laundry facilities, a playground and an onsite leasing office.
SAN DIEGO — CBRE has arranged $56.9 million in acquisition financing for three apartment communities located in South Carolina, North Carolina and Kentucky. Bill Chiles, Scott Peterson and Brian Cruz of CBRE’s San Diego office secured the floating-rate loans through Freddie Mac on behalf of the buyer, San Diego-based Strata Equity Group. The properties included in the transaction are the 183-unit Veridian Spartanburg in Spartanburg, S.C.; the 180-unit Icon on the Greenway in Gastonia, N.C.; and The Racquet Club, a 474-unit community in Lexington, Ky. All three properties were renovated in the last two years and feature granite countertops, stainless steel appliances, fireplaces, plank or hardwood-style flooring, walk-in closets and vaulted ceilings. Community amenities include resort-style swimming pools, fitness centers, pet parks and playgrounds. The Racquet Club features a massage therapist on-site, restaurant, cyber café and a private lake and gazebo.
CHARLOTTE, N.C. — Rockford Capital Partners, in partnership with Blue Vista Capital Management, has acquired Four Resource Square, a 153,000-square-foot office building in Charlotte’s University submarket. Rob Cochran and Jared Londry of Cushman & Wakefield arranged the transaction on behalf of the undisclosed seller. The sales price was not disclosed. Medical technology provider Allscripts anchors Four Resource Square. Rockford and Blue Vista plan to invest in capital improvements to upgrade the building and available suites. Joe Franco and Katherine Richey of CBRE will handle the building’s leasing assignment on behalf of the new ownership.
MORRISVILLE, N.C. — CBRE has arranged a $42.2 million Fannie Mae loan for the acquisition of The Reserve at Park Place, a 312-unit apartment community located at 4531 Langdon Drive in Morrisville. Steve Heffner, Nate Sittema and Kristen Reilley of CBRE arranged the loan on behalf of the buyer, Centennial Holding Co. Watson Bryant, Jordan McCarley and Marc Robinson of Cushman & Wakefield arranged the sale on behalf of the seller, Park Place Members LLC. Constructed in 2017, the property features a saltwater pool, entertainment pavilion, car wash facility, dog park and spa, billiards table and a fitness center.
The Raleigh-Durham industrial and flex market, totaling approximately 129 million square feet, continues to be strong with overall positive absorption. Vacancy is trending lower, making the region a landlord and seller’s market. With increasing construction costs, lower vacancy and solid demand, the rental rates and sales prices are now the highest of any city in North Carolina. Available industrial land is diminishing for development in high-demand areas, and that typically signifies a significant barrier to entry for developers helping keep supply in check. The rental rate for new industrial product is currently in the mid-$5.00 per square foot range and trending higher. Some developers and brokers speculate the Triangle may become a $6.00-plus per square foot market for institutional-grade warehouse space. However, when comparing rental rates to markets like Austin and Boston, Raleigh-Durham is still a very competitive option. Ground zero for the region’s warehouse market is in the general vicinity of Raleigh-Durham International Airport. Most of these distributors are delivering to the local market and need the central location and access to Interstate 40. The highest rates and prices can be found in this submarket and then start to decrease further out. Due to the lack of available land …
CHARLOTTE, N.C. — CBRE Capital Markets has arranged the sale of a 491,025-square-foot distribution center located at 10701 Nations Ford Road in Charlotte. The building is situated at the intersection of Interstates 77 and 485, roughly 13 miles south of Charlotte Douglas International Airport. Patrick Gildea, Anne Johnson, Bryan Crutcher and Matt Smith of CBRE arranged the transaction on behalf of the seller, an affiliate of Boston-based STAG Industrial Inc. Other terms of the deal and the buyer were not disclosed. Constructed in 1975 and renovated in 1999, the facility features 20- and 30-foot clear heights, 74 dock-high doors, three drive-in doors, trailer parking, office space and an ESFR sprinkler system.