North Carolina

Triangle’s Retail Market Turns New Page Led by Openings of Mixed-Use Developments

by John Nelson January 31, 2023

The retail market across the Raleigh-Durham region, also known as the Triangle, soared to new heights in 2022 despite significant global economic headwinds. Spurred by population growth and major economic development announcements, 2022 was filled with the groundbreaking and opening of new retail and mixed-use projects across the region. For the second consecutive year, North Carolina witnessed record-breaking economic development activity. New and expanding companies announced more than 12,700 jobs and more than $11 billion in new investments in the Triangle region alone. While the urban sectors lagged through 2020 and 2021, they saw a resurgence in 2022 with major tenant announcements for Smoky Hollow (Kane Realty Corp.) such as Midwood Smokehouse, The Crunkleton, Madre, Dose and New Anthem Beer Project. Downtown Raleigh also featured the delivery of 301 Hillsborough at Raleigh Crossing (Barings), Tower Two of Bloc 83 (City Office REIT) and construction of Seaboard Station (Hoffman & Associates). Downtown Durham boasted major groundbreaking, retailer and restaurant announcements as well, including the groundbreaking of Novus (Austin Lawrence Partners), encompassing 23,000 square feet of ground-floor retail space and 27 floors of high-end residential. American Tobacco Campus reimagined its restaurant mix to announce Five Star, Press, Queen Burger and the soon-to-open …

January 31, 2023

Acquisitions Multifamily North Carolina Southeast

MEAG Acquires 247-Unit Liberty Warehouse Apartments in Downtown Durham

by John Nelson January 27, 2023

DURHAM, N.C. — MEAG, in cooperation with CBRE Investment Management, has acquired Liberty Warehouse, a 247-unit residential community in downtown Durham, on behalf of Munich Re Group. Located at 530 Foster St., the property features 20,700 square feet of ground-floor retail space that was fully leased at the time of sale. Amenities at the community include a 24-hour fitness center, saltwater pool, tenant lounge and club room, pet run and pet spa, electric vehicle charging stations and 376 parking spaces. Charleston-based Greystar manages the property. The investment is part of a separate account mandate that MEAG recently signed with CBRE Investment Management to invest in the U.S. residential market. The seller and sales price were not disclosed.

January 27, 2023

Development Industrial Life Sciences North Carolina Southeast

Eli Lilly to Invest $450M at Research Triangle Park Campus in Durham

by John Nelson January 25, 2023

DURHAM, N.C. — Eli Lilly and Co., a pharmaceutical giant based in Indianapolis, plans to invest $450 million to expand its campus within Research Triangle Park (RTP) in Durham. The expansion includes additional parenteral filling, device assembly and packaging capacity to support an increased demand for the company’s incretin products that treat diabetes. The move is expected to create at least 100 new jobs, primarily comprising manufacturing personnel who will produce incretin treatments and medical devices. Eli Lilly expects the new facility to come on line in 2027. Since 2020, the company has committed roughly $4 billion to new manufacturing facilities in North Carolina, including $1.7 billion for the development and expansion of its RTP base.

January 25, 2023

Market Reports North Carolina Office Southeast Southeast Market Reports

Raleigh-Durham Office Market is Facing Even Stronger Headwinds at Start of 2023

by John Nelson January 25, 2023

Talk to any commercial broker across the Raleigh-Durham market and you will hear much of the same feedback. In answer to the basic questions, one hears, “The in-office work week is now three days, primarily Tuesday through Thursday.” This trend, which was slowly becoming more evident over the last 20 years with the growth of the digital economy, was accelerated by the pandemic. And further aided by the wider availability of high-speed internet, the demands of the digital workforce are taking people out of their offices and, in some cases, around the world. Companies that value their digital workers are letting them make business decisions that affect the office building markets around the world. It is fascinating to watch. Recent data published by Kastle Systems (a keycard and security supplier for commercial buildings) shows that based on keycard swipes across the 10 largest cities in the United States, we are witnessing structural change in both the traditional work week and employee work hours, in degrees that are directly impacting the need for office space. As a result, employers are downsizing their leased footprints, opting for less square footage and/or shorter leases. Those companies with large numbers of digital workers are …

January 25, 2023

Acquisitions North Carolina Retail Southeast

SRS Brokers $2.2M Sale of Grocery-Anchored Shopping Center in Albemarle, North Carolina

by John Nelson January 24, 2023

ALBEMARLE, N.C. — SRS Real Estate Partners’ National Net Lease Group has brokered the $2.2 million sale of First Street Station, a 52,230-square-foot, grocery-anchored shopping center located at 801-819 N. First St. in Albemarle, about 40 miles east of Charlotte. Ed Laycox of SRS represented the seller, a North Carolina-based private investor, in the transaction. The buyer was a Charlotte-based private investor who was in a 1031 exchange and paid all-cash. Built in 1989 on a six-acre site, First Street Station was 91 percent leased at the time of sale to tenants including Harris Teeter, Roma Pizza and Napa Auto Parts, among others.

January 24, 2023

Affordable Housing Development Loans Multifamily North Carolina Southeast

Urban Atlantic, Inlivian Secure $84M in Debt and Public Financing for Mixed-Income Project in Uptown Charlotte

by John Nelson January 19, 2023

CHARLOTTE, N.C. — Urban Atlantic, in partnership with Inlivian and its nonprofit development subsidiary, Horizon Development Properties (HDP), has secured $84 million in debt and public financing for the construction of Trella Uptown, a mixed-income apartment community to be built at 426 North Tryon Street in uptown Charlotte. Inlivian is the City of Charlotte’s housing authority. Totaling 353 units and 330,000 square feet, the community will feature 106 affordable housing units. Of these, 35 will be reserved for residents earning 80 percent of area median income (AMI); two will be for residents earning 60 percent of AMI; 37 will be for residents earning 50 percent of AMI; and 32 will be for residents earning 30 percent or less of AMI. C.O.R.E. Programs Inc. will provide supportive services to residents in the latter category. Chase Bank provided two separate loans, including $50.6 million for the construction of Trella Uptown’s market-rate units and $16.3 million for the construction of the property’s affordable units. HDP will also provide a $7.8 million construction loan. The City of Charlotte is providing $3.2 million from its Housing Trust Fund, and Mecklenburg County is providing $6 million in the form of an affordable housing grant. Other capital …

January 19, 2023

Development Hospitality Loans North Carolina Southeast

Artemis Provides $74.7M in Financing for Dual-Branded Hotel Project at Reston Town Center in Metro D.C.

by John Nelson January 19, 2023

RESTON, VA. — Artemis has provided $74.7 million in financing for the construction of a dual-branded Marriott AC Hotel and Residence Inn at Reston Town Center in Reston, approximately 20 miles northwest of Washington, D.C. Jamie Leachman and Chris Hew of JLL arranged the financing on behalf of the borrow and developer, The Donohoe Cos. Totaling 267 guest rooms and designed by Atlanta-based Cooper Carry Architects, the project will include a 120-room extended-stay Residence Inn and a 147-room boutique AC Hotel. Additionally, the development will feature 34,000 square feet of restaurant and retail space. Amenities will include a shared lobby, 8,000 square feet of meeting space, an indoor pool and a fitness facility. Completion of the project, which is already under construction, is scheduled for late 2024. Donohoe Hospitality will operate the hotels, and Complete Building Services will provide facilities management services.

January 19, 2023

Acquisitions Multifamily North Carolina Southeast

Northmarq Arranges Sale of 33-Story Ascent Uptown Apartment Tower in Charlotte

by John Nelson January 19, 2023

CHARLOTTE, N.C. — Northmarq has arranged the sale of Ascent Uptown, a 33-story apartment community comprising 300 units in Uptown Charlotte. Located at 225 S. Poplar St., the property features a rooftop pool, sky lounge, penthouse lounge with bar, private massage room, fitness center and a pet spa and grooming salon. Allan Lynch, Andrea Howard, Caylor Mark, John Currin and Jeff Glenn of Northmarq arranged the sale on behalf of the seller, Charleston-based Greystar, which delivered the high-rise in 2017. Faron Thompson, David Vinson, Grant Harris and Jeff Erxleben of Northmarq secured acquisition financing for the property on behalf of the undisclosed borrower. The sales price and financing amount were not disclosed.

January 19, 2023

Development Hospitality North Carolina Retail Southeast

CBL Properties, Vision Hospitality to Develop Element by Westin Hotel in Wilmington, North Carolina

by John Nelson January 18, 2023

WILMINGTON, N.C. — CBL Properties and Vision Hospitality Group have partnered to develop a 139-room Element by Westin hotel in Wilmington. The hotel will be part of Mayfaire Town Center, a 610,000-square-foot power retail center that CBL owns and manages. The center’s anchors and junior anchors include Belk, a 16-screen Regal movie theater, The Fresh Market, World Market, Pottery Barn, Ulta Beauty and Michael’s. Situated on International Drive, the new hotel will accommodate both short- and long-term stays with guestrooms that include kitchens and spa-inspired bathrooms. CBL and Vision, which are both based in Chattanooga, plan to raze a restaurant on the site to make way for the hotel, which is expected to open in spring 2024.

January 18, 2023

Acquisitions Multifamily North Carolina Southeast

CBRE|Raleigh Negotiates $56.5M Sale of Apartment Community in Northwest Raleigh

by John Nelson January 17, 2023

RALEIGH, N.C. — CBRE|Raleigh has negotiated the $56.5 million sale of Edwards Mill Townhomes and Apartments, a 220-unit multifamily community located at 4428 Mill Village Road in northwest Raleigh. Howard Jenkins, Kevin Kempf, William Yowell and Drew Harney of CBRE’s Southeast Multifamily Investment Sales team represented the seller, California-based RK Properties, in the transaction. K.O. Kennedy and Scott Brady of CBRE’s Debt & Structured Finance division secured acquisition financing for the undisclosed buyer. Built in 1984, Edwards Mill is situated within walking distance to Crabtree Valley Mall and features an onsite 20-mile fitness trail, a 5,000-square-foot fenced dog park, car care center, fitness center, swimming pool with a sundeck, cyber café, full basketball court and a lighted tennis court.

January 17, 2023

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