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Hartz Mountain Drops $55M on Charlotte Industrial Asset

23 Apr 2015, 6:25 pm

By Eliza Theiss, Associate Editor

RSI Distribution Center aerial view

New Jersey-based Hartz Mountain Industries Inc. has acquired the one-million-square-foot RSI Distribution Center in Metro Charlotte, paying $55.7 million. Cushman & Wakefield | Talhimer’s Capital Markets Group represented seller The Keith Corp. in the property’s sale, aided by the company’s Charlotte office.

The Class A industrial facility, located on 82 acres of the 680-acre Lincoln County Industrial Park, is fully leased to RSI Home Products, the world’s largest manufacturer of laminate kitchen and bath cabinetry. The tenant has a new 15-year triple-net lease on the property through August 2029.  The lease structure includes a 1.4 percent annual escalation between years one and five, followed by an annual increase of 1.5 percent through year 15. The property’s net operating income will clock in at $3,349,769 in commercial year 2015.

RSI Distribution Center ground view

The tenant’s revenues have more than quadrupled since 2004, when it opened its first location in Lincoln County Industrial Park, reaching $500 million in fiscal year 2013. As a result, RSI Distribution Center has expanded three times. The most recent expansion, executed in 2014, added 225,000 square feet. According to Cushman & Wakefield | Talhimer, RSI is considering an additional 100,000-square-foot expansion.

As a result of its multi-phase development, the distribution facility is suited for future multi-tenant use. Individual phases range between 200,000 square feet and 350,000 square feet.  Strategically located within the 4.4-million-square-foot Lincoln County Industrial Park, the facility has optimal access to I-85, the Southeast’s primary industrial route and I-40, the Southern United States’ most important east-west distribution corridor via the US Highway 321 Inter-Connector.

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Images courtesy of Cushman & Wakefield | Talhimer



Waitt Co. Drops $39.5M on Office Portfolio in Suburban Charlotte Market

14 Apr 2015, 3:00 pm

By Eliza Theiss, Associate Editor

Kingsley Park Four

Omaha, Neb.-based Waitt Co. has purchased a 178,317-square-foot suburban office portfolio in Fort Mill, S.C., for $39.5 million, or $222 per square-foot.

Waitt Co. acquired the three-building portfolio from a joint venture comprised of Childress Klein and The Spring Co. Commercial real estate services provider DTZ represented the seller via its Capital Markets team, which included Senior Managing Director Rob Cochran and Associate Vice President Jared Londry.

According to the Charlotte Business Journal, the sale included Kingsley Park Four, Five and Six, which are about 88-percent leased to tenants such as Romarco Minerals, Domtar and Mergent.

The three buildings, all Class A properties, are located in Kingsley Park, a corporate office campus in Fort Mill, S.C., in metro Charlotte. Kingsley Park is designed around a central water feature in a campus environment. It features shared common areas and scenic, pedestrian walking trails. Kingsley Park is located in close proximity to Anne Springs Close Greenway and the Baxter Village master-planned community. It also sits off I-77’s Exit 85, at the heart of Clear Springs, one of the largest master-planned communities in the region. The office park is also located across the street from the future new headquarters of LPL Financial and The Lash Group, which will bring 1 million square feet of new office space and about 5,000 jobs.

“Fort Mill has been strikingly successful in transforming itself from a suburban bedroom community into a thriving office submarket over a very short period of time,” said Jared Londry. “The boom in the Charlotte office market has expanded beyond the urban center, and investors are increasingly drawn to core offerings in high-growth secondary submarkets.

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Image credits: Childress Klein



Cushman & Wakefield | Thalhimer Completes Sale of 123KSF Industrial HQ

31 Mar 2015, 8:56 pm

By Eliza Theiss, Associate Editor

South Point Business Center

Cushman & Wakefield | Talhimer has announced completing the sale of South Point Business Center, a 123,200-square-foot single-tenant industrial headquarters facility in Charlotte’s Southwest submarket.

Buyer Founders Properties paid $9.25 million for the industrial warehouse and light manufacturing complex located on South Ridge Drive. The state-of-the-art facility serves as a mission-critical headquarters and manufacturing location for Specialty Manufacturing Inc., a top manufacturer of safety equipment and related products to the transportation industry.

Specialty Manufacturing has a new 10-year triple-net lease on the facility. South Point Business Center is located in Charlotte’s Southwest submarket, which boasts a 96 percent occupancy rate. According to Chris Norvell, SIOR of Thalhimer’s Capital Markets Group, there is “extremely strong demand for well-positioned industrial assets throughout the Carolinas.”

Buyer Founders Properties purchased South Point Business Center from Dalfen America Corp. The latter was represented by Cushman & Wakefield | Thalhimer’s Capital Markets Group. The sale was completed by Chris Norvell, SIOR and Bill Simerville of Cushman & Wakefield | Thalhimer’s Capital Markets Group, and aided by Eric Ridlehoover, Lane Holbert, CCIM, SIOR and Fermin DeOca of Cushman & Wakefield | Thalhimer’s Charlotte Office.

CBRE Capital Markets’ Debt & Structured Finance (DSF) team arranged a $5.5 million acquisition financing for the buyer earlier in March. Founders Properties was represented by Doug Seylar, Murray Kornberg, Scott Larson and Ben Bastian in the CBRE Debt & Structured Finance Minneapolis, and Steve Heffner and Nate Sittema of the CBRE Debt & Structured Finance Charlotte office.

Image courtesy of Cushman & Wakefield | Thalhimer

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Charlotte Ranks Among 20 Cities with Highest Rent Increases

23 Mar 2015, 9:57 pm

By Eliza Theiss, Associate Editor

Lofts at Music Factory location

The National Association of Realtors (NAR) has named Charlotte among the top-20 cities with the highest rent growth over the past five years, the Charlotte Business Journal reported.

According to the NAR , Charlotte’s apartment industry saw rents expand by 15.6 percent between 2009 and 2004, landing the Queen City on the 20th spot on the list.

As a result it should come as no surprise that Charlotte is experiencing a veritable apartment boom. One company that seems to be on a development roll is local developer DPJ Residential. The company, which is also developing the 77-unit Asbury Flats on Freedom Drive, has recently filed papers to rezone a 2-acre site on Central Avenue, the Charlotte Observer reported. DPJ plans to develop a boutique apartment community consisting of one three-story and one four-story structure as well as a swimming pool. DPJ is also developing Lofts at the Music Factory on a 1.29-acre parcel abutting the popular 175,000-square-foot entertainment and nightlife hub of the N.C. Music Factory. According to Charlotte Business Journal, the 100-unit Music Factory project might be followed by a 120-unit project in Wilmington, N.C.

Triange Town Place – Dominion Realty Partners, Raleigh,N.C.

Dominion Realty Partners LLC from neighboring Raleigh, N.C. is looking to get a piece of Charlotte’s apartment pie as well. According to the Charlotte Business Journal, the full-service real estate organization is under contract to acquire 3.3 acres in Uptown across Irwin Avenue from Gateway Village from Bank of America Corp. Dominion plans to start construction by mid-summer on the 300-unit project. The complex will consist of a parking deck bounded by a five-story structure.  The yet-to-be-named project will be Dominion’s first ground-up development in Charlotte. Dominion has been in active in the multifamily market of Southeastern cities such as Richmond, Virginia and Raleigh, N.C.

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Image credits: DPJ Residential and Dominion Realty Partners



Novanth Health Joins 90-acre Waverly as Medical Office Anchor

17 Mar 2015, 8:33 pm

By Eliza Theiss, Associate Editor

Peter B. Pappas, Crosland Southeast

Novant Health will be the anchor for developers Crosland Southeast and Childress Klein’s 90-acre mixed-use, master-planned development Waverly.

Novant Health, a regional medical provider, will relocate an existing facility from Providence Road to Waverly, expanding by 8,000 square feet. The healthcare provider will occupy 23,000 square feet of the first 33,000-square-foot building.

Set to open in fall 2015, Novant Health’s Waverly location will include urgent care, physical therapy, family healthcare, including pediatrics, as well as other services.

Novant Health was represented by Mike Wiles, CCIM of NAI Southern Real Estate. The owners were represented by Crosland Southeast and Childress Klein. Childress Klein is working on pre-leasing the remaining medical office space. CNL Commercial Real Estate has also been involved with the leasing process.

Waverly’s has also signed a number of retail tenants, among them Whole Foods, which will open a 40,000-square-foot location in mid-2016. Other tenants include a 6,073-square-foot Novanta Pizzeria Napoletana, a 4,300-square-foot Bad Daddy’s Burger Bar, a 2,500-square-foot Modern Salon & Spa, a 2,500-square-foot Polished Nail Bar, 1,498-square-foot Menchie’s Frozen Yogurt and a 938-square-foot Quail Dry Cleaners. Waverly’s leasing team is working on further additions and expects to make three additional announcements within a month, involving local and national sit-down restaurants.

“We put a great deal of time into hand selecting best-in-class restaurateurs and operators (…) at a variety of price points to join Waverly,” said Peter B. Pappas, lead developer from Crosland Southeast. “The next dimension is to design, along with Shook Kelley, a synergistic layout that intentionally organizes most of the restaurants around the primary public space, which we are calling The Terrace. These restaurants activate The Terrace, creating an environment where people want to come and stay.”

Waverly medical office

A joint venture between Childress Klein, Crosland Southeast and the Matthews family, Waverly will feature 250,000 square feet of retail space, anchored by Whole Foods, two five- to six-story Class A office buildings and medical office buildings. Waverly will also include 275-unit high-end Solis Waverly apartment project developed by Pappas Multifamily Partners, as well as 150 single family homes developed by David Weekley Homes.

Click here for further Charlotte market data

Images courtesy of Childress Klein and Crosland Southeast

 







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