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Feb. 8, 2013

Mixed-use Midtown Asset Sold for $94M; Suburban Medical Facility Trades for $14M

By Eliza Theiss, Associate Editor

Birmingham, Ala.-based Colonial Properties Trust Inc. has announced the sale of Metropolitan Midtown in Charlotte, N.C. The mixed-use property developed in 2008 with Pappas Properties brought in sales proceeds of $94.4 million, which will be used to fund Colonial’s multifamily development endeavors, as well as to improve the company balance sheet.

The 1225 Baxter St. asset features 170,000 square feet of office space, 172,000 square feet of retail and 2,219 parking spaces. According to a company news release, the property was 93.5 percent occupied as of December 31, 2012. Metropolitan Midtown’s retail component boasts 27 stores and anchor tenants such as Target—with 137,000 square feet, Marshall’s—with a 32,967-square-foot lease, and a 30,000-square-foot Best Buy and Staples.

With the sale of Midtown, Colonial reached its goal of having at least 90 percent of the total net operating income generated by its multifamily assets.

According to the Charlotte Business Journal, the asset was purchased by institutional investors advised by a J.P. Morgan Investment Management Inc. company. CBRE represented seller Midtown Redevelopment Partners, a Colonial and Pappas-managed LLC.

In other news, Marcus & Millichap Real Estate Investment Services announced arranging the sale of the 42,300-square-foot Mint Hill Medical Commons medical care facility in Mint Hill, N.C. The fully leased property located at 11304 Hawthorne Dr. traded for $14.1 million, or about $334 per square foot.

The property’s anchor tenant is the Charlotte Mecklenburg Hospital Authority, operating as Mint Hill Primary Care through Carolinas HealthCare System. It leases 92 percent of the facility. The seller was a Charlotte-based developer, while the buyer is New York-based. The transaction was arranged via a 1031 exchange.

In further news, Crescent Resources LLC announced commencing construction on the Circle University City student housing project. As previously reported on this page, Circle University City is 546-bed luxury student residences projects set to open in summer 2014 right across from the UNC Charlotte campus’ main entry. The 187-unit project will feature one-, two- and three-bedroom units and amenities such as individual and group study areas, a media room, fitness center with yoga studio, game room, pool, tanning beds, rooftop deck, fire pits, grilling area and secure car park. Circle University City will be pursuing LEED certification.

Rendering courtesy of Crescent Resources

Chart courtesy of Marcus &Millichap

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