As the first quarter of 2014 comes to a close, the biggest question mark facing the Charlotte market is whether or not it can handle the historically high supply levels. Despite nearly 3,500 units delivered over the past 12 months, vacancy has held steady, and rents have continued to grow by 2 to 3 percent. But with another 10,000 units under construction, Charlotte is at a critical juncture. With the pipeline at an all-time high and new projects being announced seemingly every week, will there be enough continued demand to absorb the next wave of deliveries? The ability to absorb the pending supply is largely based on the area’s favorable demographic trends and potential job growth. Between 2000 and 2010, Mecklenburg County’s population grew by 32 percent, over three times the national average, and that trend has continued with more than 7 percent growth since 2010, including the second-highest growth rate in the state from 2012 to 2013. Moreover, since 2010, Mecklenburg and Wake (Raleigh/Durham) counties have accounted for nearly half of the state’s overall population increase. That pattern mirrors a national trend of a growing desire to live in an urban environment. That paradigm shift is largely based on …
Southeast
MIAMI — Fundrise, a real estate crowdfunding platform, plans to raise capital for a 13,000-square-foot, mixed-use development in Miami’s Wynwood Arts District in conjunction with Atlas Real Estate Partners. The project, located at 2301 N. Miami Ave., is a recently renovated property that is 50 percent leased, with the remaining two leases out for signature, which will bring the building to full occupancy. On why Atlas Real Estate Partners decided to crowdfund a portion of the project’s funding, Arvind Chary, managing principal of Atlas Real Estate Partners, said, “We’re excited to allow retail investors to play a role in and benefit from the growth of Wynwood. Atlas prides itself on creating projects that spur community growth and the Fundrise model of crowdfunding investment, particularly for innovative projects, fits well with our mission.” Fundrise’s platform makes real estate investments available to both high net worth and small-scale investors.
JACKSON, MISS. — Holder Properties has begun constructing One Eastover Center, a 120,000-square-foot, Class A office building in Jackson. The property is located in the District at Eastover, a 21-acre mixed-use community. The law firm Baker Donelson will occupy the third, fourth and fifth floors of the five-story property. Holder expects to complete the project’s shell by summer 2015. The project team includes architect Nelson Partners, general contractor Roy Anderson Corp. and leasing brokerage firm Duckworth Realty.
CHARLOTTE, N.C. — J.McLaughlin, a sportswear and accessories retailer, is relocating its Charlotte store to Phillips Place, a mixed-use development in Charlotte featuring 133,059 square feet of retail space. Tenants at Phillips Place include Brooks Brothers and Dean & Deluca. The new J.McLaughlin store will open in the fall. Charlotte-based Lincoln Harris, owner of Phillips Place, inked the lease with J.McLaughlin.
WASHINGTON, D.C. — HFF has arranged the sale of The Woodley, a 212-unit multifamily high-rise building recently constructed in Washington, D.C.’s Woodley Park neighborhood. TIAA-CREF purchased the asset from The JBG Cos. and CIM Group for an undisclosed amount free and clear of existing debt. The property, located at 2700 Woodley Road N.W., has studio through three-bedroom units averaging 1,119 square feet each. The property’s amenity package includes a courtyard with reflecting pool, infinity edge swimming pool, rooftop lounge and clubroom with catering kitchen, library and fitness center. Dave Nachison, Alan Davis, Brenden Flood and Bret Thompson of HFF represented the sellers in the transaction.
PENSACOLA, FLA. — HFF has arranged an $11.4 million loan for Village Oaks, a 165,851-square-foot shopping center at 6241-6251 N. Davis Highway in Pensacola. The shopping center is 95.4 percent leased to Bealls, PetSmart, Planet Fitness, Party City, Cato and Plato’s Closet. Chris Drew, Whitaker Leonhardt and Cecily Nazario of HFF arranged the 10-year loan through Prudential Mortgage Capital Co. on behalf of the borrower, RCG Ventures LLC. Greg Krafcik of Prudential Mortgage Capital led the transaction.
TALLASSEE, ALA. — Westwood Net Lease Advisor represented Buckingham Properties REIT, a private trust based in Rochester, N.Y., in its $7.4 million purchase of an automotive parts manufacturing facility in Tallassee. Jason Benton, a local business owner, sold the 100,000-square-foot property, which is located at 50 Hanil Drive. The facility is currently leased to Hanil USA Inc., a brake, fuel and power steering tube supplier. Vince Vatterott of Westwood Net Lease Advisor represented Buckingham Properties REIT in the transaction.
LARGO, FLA. — Franklin Street Real Estate Services has arranged the approximately $3 million sale of East Bay Plaza at 5395 E. Bay Drive in Largo. The unanchored, 10,401-square-foot strip center is fully leased to Einstein Bros. Bagels, Anytime Fitness, Liberty Tax Service, Radio Shack and Zoom Tan. Jonathan Graber and Rafeal Wright of Franklin Street represented the seller, East Bay Plaza Integra LLC, in the transaction. Warner Enterprises LLC purchased the asset in a 1031 tax-deferred exchange.
NORTH CHARLESTON, S.C. — CBRE Hotels has brokered the sale of the 166-room Crowne Plaza in North Charleston. Arpit Shah of CBRE Hotels’ Charlotte office represented the seller, Inland American Lodging Management LLC, in the transaction. This is the 10th hotel in the Carolinas that CBRE Hotels has brokered on behalf of Inland since 2010. Atlanta-based Peachtree Hotel Group purchased the asset for an undisclosed amount.
POMPANO BEACH, FLA. — TM Windows LLC has leased an entire 124,894-square-foot industrial facility in Pompano Beach for warehouse, manufacturing and showroom space. The property is located at 1543 N. Powerline Road in the three-building Superior Commerce Park development. Michael Crissy of Stiles Realty represented the aluminum window and door manufacturer in its 10-year lease transaction. Michael Scarpino and Jennifer Scarpino of NAI Rauch Weaver Norfleet Kurtz & Co. represented the unnamed landlord.