By Chase Monroe, Carolinas Market Director and Charlotte Brokerage Lead, and Chris Schaaf, Executive Managing Director of Tenant Representation, JLL Nearly two years after the onset of the pandemic, Charlotte’s office market is showing strong signs of recovery as economic momentum builds. Last year, the Queen City set the stage for growth with 4.9 million square feet of office space delivered from pre-pandemic projects, boasting over 1 million square feet more than any other metro for deliveries that occurred in 2021. Market-wide preleasing also exceeded 60 percent and nearly 2.1 million square feet of office space was under construction. Entering 2022, the market continued to forge ahead as large occupiers started their return to the office, and leasing activity began to surge throughout the region. And long-anticipated projects, such as Legacy Union, 110 East and The Station broke ground. According to Urban Land Institute’s 2021 annual report, Charlotte ranked No. 6 among the hottest real estate markets in the United States, with developers and investors betting big on Sun Belt cities. Deemed an 18-hour magnet city by the Emerging Trends in Real Estate survey, people and businesses alike are flocking to Charlotte, the so-called “migration destination.” Thanks to strong economic …
Southeast
Adam America, Stellar Communities to Develop 275-Unit Apartment Community in Broward County
by John Nelson
DANIA BEACH, FLA. — An affiliate of Adam America Real Estate and Stellar Communities plan to develop a six-story, 275-unit apartment community in South Florida’s Broward County. The developers recently purchased 7.2 acres of fully entitled land at 4200 SW 54 Court in Dania Beach for the development near the new Seminole Hard Rock Hotel & Casino. Designed by CFE Architects, the unnamed apartment community will feature a 450-space parking garage, nature preserve, parks, resort-style pool, fitness center, clubroom, coworking space and electric vehicle charging stations. Units will come in studio, one-, two- and three-bedroom floor plans. Adam America and Stellar plan to deliver the community by the fourth quarter of 2024. The duo are also co-developing build-to-rent communities around Florida and a high-rise multifamily project in Miami suburb Aventura.
TUSKEGEE, ALA. — Farpoint Development has broken ground on a 169,000-square-foot spec industrial facility located in Tuskegee, a city about 15 miles from Auburn via I-85. The $20 million facility represents Phase I of the Regional East Alabama Logistics (REAL) Park, a 683-acre development that is slated to house up to 13 buildings spanning 5 million square feet at full buildout. The overall development is estimated to generate $386 million in new capital investment, according to a study conducted by the University of Alabama’s Center for Business and Economic Research. Farpoint estimates the campus will support 1,000 new jobs directly and 863 jobs indirectly. REAL Park is a partnership between Farpoint, the Bassett family and the Macon County Economic Development Authority. Opportunity Alabama’s OPAL Fund is the lead equity investor for REAL Park. Doster Construction is the general contractor for the first facility, which is slated to deliver in early 2023. The property will be the only Class A warehouse or manufacturing facility in a 40-mile radius, according to Farpoint.
Crosland, Harbour Retail to Develop 78-Acre Mixed-Use Wallbrook Project in Rolesville, North Carolina
by John Nelson
ROLESVILLE, N.C. — Crosland Southeast and Harbour Retail Partners are co-developing Wallbrook, a 78-acre mixed-use development in the Raleigh suburb of Rolesville. The property is expected to comprise 140 residential units and 265,000 square feet of commercial space, including a 50,000-square-foot Publix grocery store. Phase I will include 80,000 square feet of space, including the Publix. The developers have tapped Charlie Coyne and Matt Larson of CBRE|Raleigh to oversee leasing for the retail component. No construction timeline was given.
TAMPA, FLA. — Northmarq’s Tampa office has arranged four loans totaling approximately $16.7 million for the refinancing of a retail portfolio in the metro Tampa area. The four assets include Carrollwood Regency Plaza and The Pointe at Tampa Palms in Tampa, North Tampa Shores in Oldsmar and Triple Crown Plaza in Ocala. Together the centers span 115,309 square feet of retail space. Robert Hernandez of Northmarq arranged the loans, each of which were underwritten with 10-year terms and 30-year amortization schedules. An unnamed life insurance company provided the loans on behalf of the undisclosed borrower.
Lument Provides $11M Agency Loan for Refinancing of Abby Glen Apartments in Madison, Alabama
by John Nelson
MADISON, ALA. — Lument has provided an $11 million Fannie Mae loan for the refinancing of Abby Glen Apartments, a 120-unit multifamily community in the Huntsville suburb of Madison. Built in 2001, the property comprises nine one-story buildings, a rental office and a single-family home, with units available furnished or unfurnished. Amenities include a laundry facility, swimming pool, fire pit/grilling area, fitness center, dog park and a bocce ball court. Bryan Cullen of Lument originated the 10-year loan, which features six years of interest-only payments, a fixed interest rate, cash-out proceeds and a 30-year amortization schedule. The sponsor was multifamily investor Steven Gouletas. Cullen says the loan refinances a Fannie Mae acquisition loan originated in 2008.
One Year Later: Surfside Collapse Inspires Newly Passed Florida Legislation Addressing Structural Integrity
by John Nelson
By Jim Prichard of Ball Janik LLP The 13-story, L-shaped Champlain Towers decorated the Surfside coastline. In the early morning of June 24, 2021, the pool deck suffered a partial collapse, triggering more destruction in the structure’s central section and eastern wing. In less than 30 seconds, approximately half of the 136 units in the building were destroyed, leaving 98 residents dead and establishing a horrific legacy as one of the deadliest structural engineering failures in U.S. history. In the wake of the tragedy, Miami-Dade County Mayor Daniella Levine Cava ordered an immediate audit of all high-rise buildings that were more than 40 years old and five stories tall constructed by the developer. The attention to South Florida development prompted a review of hundreds of older buildings. There was also an onslaught of editorial investigations, including features by The New York Times, The Wall Street Journal and the Miami Herald. Florida International University conducted its satellite analysis of the site as well. All investigations, first-hand experiences, and post-collapse engineering findings reported that there had been concerns about the structural integrity of the building and that the collapse was based on faulty construction and deterioration. As a law firm, our biggest …
Toro Development to Redevelop Office Campus in Metro Atlanta for Mixed-Use Destination
by John Nelson
JOHNS CREEK, GA. — Toro Development Co. plans to redevelop a former State Farm Insurance corporate campus in the northeast Atlanta suburb of Johns Creek to make way for a mixed-use destination. The project will be part of Johns Creek’s future 192-acre Town Center, which will feature a City Hall, housing, shops, restaurants, offices and parks. The newly launched Toro Development purchased 43 acres of the 54-acre site from a fund sponsored by U.S. Realty Advisors, a New York-based firm that has owned the campus since 2013. Situated at the intersection of Johns Creek Parkway and McGinnis Ferry Road, the site currently houses two mid-rise office buildings that once were leased to State Farm before moving to its regional headquarters in nearby Dunwoody. Toro Development, whose principal and chief vision officer Mark Toro oversaw the development of Avalon in Alpharetta and the redevelopment of Colony Square in Midtown Atlanta during his time with North American Properties, plans to redevelop the site with ground-level stores and restaurants set below housing. The campus will also include a high-end concierge program. In the coming months, Toro Development will meet with the community to learn about the types of experiences they are seeking at …
CHARLOTTE, N.C. — The Kirkland Co. has brokered the $90.9 million sale of Amaze @ NoDa, a 298-unit apartment community in Charlotte. Built in 2020, the gated property is situated in Charlotte’s NoDa (north of Davidson Street) district along the Lynx Blue Line rail. Dennis Harris, Austin Haney and Matt Behr of Kirkland represented the seller and developer, Neyland Apartment Associates, in the transaction. Stoneweg U.S. LLC, a multifamily investor and developer based in St. Petersburg, Fla., was the buyer. Amaze @ NoDa features studio, one- and two-bedroom units, as well as a pool, clubhouse, sky lounge with an outdoor bar, business center, bike storage, fitness center, dog park, firepits, courtyard and grills.
ATLANTA — Blue Vista Capital Management and StepStone Real Estate, the real estate arm of investment firm StepStone Group, have purchased Theory Interlock, a 240-unit student housing project underway near Georgia Tech in Atlanta’s West Midtown district. Blue Vista and PeakMade Real Estate are the developers behind the community, which is one of the anchors of the $450 million The Interlock mixed-use destination that SJC Ventures is developing. Theory Interlock, which will feature a unit mix ranging from studios to five-bedroom apartments, is slated to open ahead of the fall 2023 semester. The acquisition of Theory Interlock is the first investment for a $90 million co-investment partnership between Blue Vista and StepStone that is focused on student housing opportunities.