Thursday, April 18, 2024
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DevelopmentMultifamilyNorth CarolinaSoutheast

Woodfield, American Asset Corp. to Open 264-Unit Apartment Community in Raleigh

by John Nelson

RALEIGH, N.C. — A joint venture between Woodfield Development and American Asset Corp. plans to soon open The Keaton at Brier Creek, a 264-unit apartment community located at 3920 Macaw St. in Raleigh. The property will serve as the multifamily component of Brier Creek Town Center, which features an 800,000-square-foot shopping center called Brier Creek Commons Shopping Center. Woodfield and American Asset Corp. have begun leasing The Keaton, which will include studio, one-, two- and three-bedroom apartments commanding monthly rental rates starting at $1,414, according to the property website. Shelton Taylor + Associates designed the unit interiors. Amenities will include an 8,000-square-foot clubhouse, resort-style pool, fitness center, rooftop sky lounge, courtyards, dog park and spa, car wash station and detached garages. Move-ins are slated to begin later this month.

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Market ReportsNorth CarolinaRestaurantRetailSoutheastSoutheast Market Reports

Raleigh-Durham Offers Great Opportunities for Retail Owners and Investors

by John Nelson

By Tom Kolarczyk of JLL The overall U.S. economic slowdown, rising interest rates and the looming threat of inflation had a negative effect on all segments of Raleigh-Durham’s commercial real estate market last year — and retail was no exception. According to JLL research, there were just 11 retail trades over $5 million between January and December, totaling some $131 million in value. This is a notable drop from the 33 transactions recorded in 2022 valued at $582 million.  On the flipside, however, fundamentals remained incredibly strong with occupancies ending out the year at the near record-setting level of 98 percent. This led to leasing spreads of anywhere between 20 and 40 percent on new leases and helped flip the tables to favor landlords for the first time in decades, where getting space back is generally a positive.  Rents grew 3 to 6 percent in 2023, with an average year-end asking rate of $24.93 per square foot. This represents a year-over-year increase of 6.45 percent from 2022. While about 80 percent of all retail trades last year were acquired through private capital, an increasing number of REITs are becoming more active via mergers and acquisitions and strategic one-off acquisitions and …

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AcquisitionsNorth CarolinaRetailSoutheast

Yale Realty Services Acquires Target-Anchored Shopping Center in Metro Charlotte for $49.2M

by John Nelson

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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DevelopmentLoansNorth CarolinaRetailSoutheast

BWE Arranges $24.3M Construction Loan for Retail Development in Southern Pines, North Carolina

by John Nelson

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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Leasing ActivityNorth CarolinaSoutheast

Cushman & Wakefield Arranges 69,271 SF Lease at 550 South Office Tower in Uptown Charlotte

by John Nelson

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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DevelopmentIndustrialNorth CarolinaSoutheast

Crescent Communities Begins 175,000 SF AXIAL Midway 321 Industrial Project in Metro Charlotte

by John Nelson

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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Market ReportsMultifamilyNorth CarolinaSoutheastSoutheast Market Reports

Raleigh-Durham Multifamily Market to See Rent, Occupancy Growth in 2024

by John Nelson

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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Build-to-RentDevelopmentMultifamilyNorth CarolinaSingle-Family RentalSoutheast

Trilogy Investment  to Develop Three Rental Townhome Communities in Metro Asheville

by John Nelson

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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IndustrialMarket ReportsNorth CarolinaSoutheastSoutheast Market Reports

Raleigh-Durham’s Industrial Market Continues Ascent Into 2024

by John Nelson

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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DevelopmentLoansMultifamilyNorth CarolinaSoutheast

Madison Communities Obtains $80M Construction Loan for Charlotte Multifamily Development

by John Nelson

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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