Like many Southeastern markets, the Charlotte industrial market largely hit the pause button from mid-March until June due to COVID-19. While the impacts of the health crisis remain fluid, the market is showing some signs of life, and trends that have long been at play are not likely to be reversed. For the past 90 days, the market has seen a significant drop in leasing and sales activity. The market was a bit sluggish in 2019, but experienced good activity in the first quarter prior to area shutdowns. Asking rents rose 5 percent year-over-year to $4.81 per square foot as new space is being added to the market at a higher price point. That rental rate is a record high for the Charlotte warehouse and distribution market. Most of the recent growth has occurred in the Cabarrus County, Stateline and Airport/West submarkets. Developers continue to fill demand for modern e-commerce, third-party logistics and general distribution space. Additional deliveries will keep upward pressure on vacancy in the near-term, but overall conditions should remain healthy thanks to strong economic tailwinds and Charlotte’s proximity to key East Coast transportation corridors and population centers. Absorption declined significantly over the past 12 months, from 5.3 …
CHARLOTTE, N.C. — Atco Properties & Management and Shorenstein Properties LLC have opened the Gama Goat Building, a 140,000-square-foot office building in Charlotte. The new building is situated at 1701 N. Graham St. within the 1 million-square-foot mixed-use development, Camp North End. The open-air property also features four food halls, including La Caseta, Bleu Barn Bistro and Saru by Bow Ramen, which were all unveiled during the grand opening ceremony held Wednesday. S9 Architecture served as the design architect, BB+M Architecture served as the local production architect and LandDesign served as the civil engineer and landscape architect for the Gama Goat Building. Jessica Brown, David Dorsch, Kris Westmoreland and Grant Keyes of Cushman & Wakefield will handle leasing efforts at the building. Approximately 3,000 square feet of retail space is available for lease, including the fourth food stall. Fitness concept bloc also leases space at the Gama Goat Building.
CONCORD, N.C. — TSCG has negotiated the $7.1 million sale of The Shops at Christenbury, an 11,350-square-foot retail property in Concord. The asset was fully leased at the time of sale to tenants including Aspen Dental, First Watch, Atrium Health and Brownlee Jewelers. A Kohl’s store, McDonald’s outparcel and an Andy’s Frozen Custard outparcel sit on the property but were not part of the sale. The seller, Thompson Thrift Development, delivered the property in 2019. The Shops at Christenbury is located at 8825 Christenbury Parkway, 15 miles north of downtown Charlotte. Anthony Blanco of TSCG represented the Indianapolis-based seller in the transaction. Erin Patton of Marcus & Millichap represented the buyer, an affiliate of Ohio-based Deville Developments.
FAYETTEVILLE, N.C. — Berkadia has provided a $17.9 million Fannie Mae acquisition loan for Ardmore Pointe, a 291-unit multifamily community in Fayetteville. The 10-year loan features a fixed 3.01 percent interest rate and a 65 percent loan-to-value ratio. The property offers one-, two- and three-bedroom floor plans averaging 1,051 square feet. Communal amenities include a clubhouse, pool, dog park, fitness center and a car wash area. The asset is situated at 3325 Oak Forest Drive, eight miles west of downtown Fayetteville. Mitch Sinberg and Brad Williamson of Berkadia originated the loan on behalf of the buyer, One Real Estate Investments. The seller and sales price were not disclosed.
CHARLOTTE, N.C. — White Lodging Services Corp. and Charlotte-based Crescent Communities have topped out the first JW Marriott in the Carolinas. The planned 381-room hotel is 22 stories and is located at 600 S. College St. in Uptown Charlotte. The hotel will be part of the Ally Charlotte Center a 742,000-square-foot mixed-use development featuring more than 30,000 square feet of retail space, a 12,000-square-foot public plaza and a 1,436-space parking garage. Ally Financial will occupy 400,000 square feet of office space and anchor the property, with move-in scheduled for second-quarter 2021. The hotel was first announced in November 2018, and the developers expect to deliver the JW Marriott in the first half of 2021. “The construction has remained on track as we adjusted to appropriately respond to the COVID-19 pandemic,” says Terry Dammeyer, president and CEO of investments and development at Merriville, Ind.-based White Lodging. The hotel will feature 34 suites, 15,000 square feet of event space, a pool, fitness center, spa, ballroom, rooftop terrace, Italian steakhouse and oyster bar. Guests rooms will include floor-to-ceiling windows, marble showers and 24-hour room service. In conjunction with the topping out, David Malmberg has been named general manager of the hotel upon opening. …
CHARLOTTE, N.C. — Third & Urban has partnered with Angelo Gordon to develop Lower Tuck, an $80 million, 260,000-square-foot mixed-use project in Charlotte’s west side. Atlanta-based Third & Urban will transform the existing four-building property into office, showroom and retail space. The property is located along Tuckaseegee Road (where the project named is derived) between Jay and Gesco streets, two miles west of downtown Charlotte. Cadence Bank has provided a $48 million construction loan to the developers. Charley Leavitt, Barry Fabyan and Alexandra Mann of JLL will handle leasing efforts for the space. The design team includes Smith Dalia Architects, civil engineer LandDesign and general contractor Gay Construction. The development team expects to begin construction this summer with initial units being delivered in summer 2021.
HICKORY, N.C. — Flagship Healthcare Properties has purchased three medical office buildings totaling 88,000 square feet in Hickory. The buildings were 96 percent leased at the time of sale to tenants including the Veteran’s Administration Hickory Outpatient Clinic (25,920 square feet), A Woman’s View (20,470 square feet) and practices associated with Frye Regional Medical Center (19,923 square feet). The VA is located at 2440 Century Place SE, 50 miles north of downtown Charlotte. A Woman’s View is located at 915 Tate Blvd. SE, and Frye Regional Medical Center is situated at 420 N. Center St. Flagship Healthcare will provide property management services at the Hickory portfolio. First Horizon Bank provided acquisition financing. The seller(s) and sales price were not disclosed.
RALEIGH, N.C. — Newmark Knight Frank (NKF) has negotiated the sale of Hawthorne at the Trace, a 250-unit multifamily community in Raleigh. The property was built in 1995 and offers one-, two- and three-bedroom floor plans. Communal amenities include a pool, playground, dog park, valet trash pickup, picnic area, grilling area, fitness center and a clubhouse. The asset is located at 8224 Green Lantern St., 10 miles northwest of downtown Raleigh. Sean Wood, John Heimburger, Dean Smith, Alex Okulski, John Munroe and Jason Kon of NKF represented the seller, Hawthorne Residential Partners, in the transaction. NKF’s Debt & Structured Finance team arranged financing on behalf of the buyer, KnightVest, which bought the community for an undisclosed price. The terms of the loan were also not disclosed.
CHARLOTTE, N.C. — Albany Road Real Estate Partners has sold an industrial portfolio comprising four properties in metro Charlotte for $75.5 million. The first property, Overlook 77, totals three buildings at 5521 Lakeview Road in Charlotte. The portfolio includes two parks on the north side: International Corporate Center, a five-building property located at 4601 Corporate Drive in Concord, and the three-building Lakefield Corporate Center located at 307 Oates Road in Mooresville. The final property is the two-building SouthCross Corporate Center in Rock Hill, S.C. The property is situated at 3042 SouthCross Blvd., 21 miles southwest of downtown Charlotte. Patrick Gildea, Matt Smith, Anne Johnson, Bryan Crutcher, and Grayson Hawkins of CBRE represented the seller in the transaction. The buyer, CIP Real Estate, retained Anne Johnson and Bryan Crutcher of CBRE to handle leasing efforts for the portfolio.
KANNAPOLIS, N.C. — Prime Beverage Group will invest $68 million in a manufacturing facility in Kannapolis that will create 231 jobs. The 300,000-square-foot property will include warehouse space and will have the capability of packing 1,500 cans per minute. The property will be located at 1858 Kannapolis Parkway, 21 miles northeast of downtown Charlotte. Among the positions Prime Beverage will add in the Cabarrus County facility are technicians, sales, operations and managerial personnel with an average annual salary of $65,900. According to North Carolina Gov. Roy Cooper’s office, the current average annual wage in Cabarrus County is $38,892. Funding for the project is coming in part from the state’s Economic Investment Committee, which approved a 12-year Job Development Investment Grant. The grant authorizes the potential reimbursement of up to $2.4 million if the company meets its hiring goal. Prime Beverage is a beverage co-packing company that will contract with brand name beverage companies to mix and package their canned drinks. A timeline for construction was not disclosed.