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Adler Kawa Real Estate Buys 224KSF Office Space in Office Park

8 Aug 2014, 9:14 pm

By Eliza Theiss, Associate Editor

One year after purchasing the 223,850-square-foot Carmel Executive Park, Florida-based Adler Kawa Real Estate Advisors (AKREA) has made another acquisition in the Charlotte Metropolitan Area, picking up 249,000 square feet of office space at Oak Hill Business Park.

AKREA purchased the four-building portfolio through the Adler Kawa Real Estate Fund II from an undisclosed private equity group. The latter was represented by CBRE Miami’s First Vice President Patrick Gildea and Vice President Ralph Oldham, while financing for the acquisition was secured by Vice Chairman Charles J. Foschini and First Vice President Christopher A. Apone. According to the Charlotte Business Journal, the acquisition was made at a price of $16.6 million.

“AKREA’s acquisition of Oak Hill Business Park is a text book example of our approach to purchasing assets in growth markets at a favorable cost basis with an eye toward creating value,” said Matthew L. Adler, president and CEO of AKREA.

Located in Charlotte’s I-77 Corridor submarket, the 68 percent-occupied portfolio was in line with AKREA’s acquisition strategy that targets multi-tenant, management-intensive properties with an opportunity for value creation. A series of capital improvements and physical upgrades will follow at the property, such as renovation to building lobbies, the company announced. An aggressive leasing and management strategy will also be implemented, to which purpose AKREA will bring in Trinity Partners as third-party leasing agent. Adler Realty Services, an AKREA affiliate specialized in managing and leasing multi-tenant office and industrial assets, has been appointed onsite property manager.

Initially developed in 1989, the 67-acre Oak Hill Business Park has since emerged as one of the most attractive business parks in Metrolina. Its location in the I-77 submarket offers direct access to Charlotte Douglas International Airport, I-77 and I-485. Average suites at the Class B properties do not exceed 5,000 square feet. The portfolio houses a varied mix of over 30 national and regional tenants, such as Walmart, Paychex and Canon, with no one tenant leasing more than 7.5 percent of the space.

Adler Kawa Real Estate Fund II is focused on purchasing multi-tenant office and industrial assets in the southern and eastern U.S. Since its early 2013 launch, 55 percent of the funds’ $56 million in capital has been deployed, purchasing six properties comprising 950,000 square feet of office and industrial space, valued at nearly $100 million.

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Image courtesy of Adler Kawa Real Estate Advisors

Simon, Tanger Factory JV Opens $90M Outlet Mall, Charlotte’s First in 10 Years

1 Aug 2014, 7:01 pm

By Eliza Theiss, Associate Editor

Simon Property Group, a global leader in retail real estate ownership, has announced the grand opening of Charlotte Premium Outlets, a 398,421 square-foot upscale outlet shopping center.

The mall, located on I-485 in Steele Creek, N.C., in the Greater Charlotte Area, features 100 outlet stores. According to The Charlotte Observer, the Saks Fifth Avenue-anchored development is the city’s first mall in nearly 10 years.

Charlotte Premium Outlets is a joint venture between Indianapolis-based Simon and Greensboro-based Tanger Factory Outlet Centers Inc. According to the Charlotte Business Journal, the mall was developed on a 40-acre greenfield at a cost of around $90 million. The partners have a 50-50 stake in the development.

As previously reported, the two entities initially planned separate projects, which were announced within a week of each other. Tanger’s Tanger Outlet Center was planned at the interchange of I-485 and Steel Creek Road, where Charlotte Premium Outlets has now opened. Tanger Outlet Center Charlotte was imagined as a 90-store, 350,000-square-foot outlet center with a planned 50,000-square-foot second phase. That project was helmed by a joint venture comprised of Tanger Factory Outlet Centers, Childress Klein Properties and Steele Creek Limited Partnership, a long-time landowner in Steele Creek.  Simon initially planned a 400,000-square-foot high-end outlet store at I-485 and Idlewild Road in Staling, N.C under the name Charlotte Premium Outlets. That development would have seen Simon partner up with Paragon Outlet Partners.

The now-opened Charlotte Premium Outlets comprises 100 high-end outlet stores, such as Converse, Quiksilver, Steve Madden, Cole Haan, Ann Taylor Factory Store, Brooks Brothers Factory Store, J.Crew, Michael Kors, Reebok and Tommy Hilfiger. The development is part of the global Simon Premium Outlets portfolio.

The project has generated more than 900 full and part-time jobs. According to the Charlotte Business Journal, Charlotte Premium Outlets is expected to generate in excess of $140 million in annual retail sales, resulting in annual sales tax revenues of around $10 million.

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Image courtesy of Charlotte Premium Outlets via Facebook

Sealed Air and Spectra Group Bring 1,500 Jobs to Charlotte

25 Jul 2014, 11:02 pm

By Eliza Theiss, Associate Editor

Gov. Pat McCrory, NC Commerce Secretary Sharon Decker and Sealed Air Corporation officials

North Carolina Governor Pat McCrory and North Carolina Commerce Secretary Sharon Decker recently made two major announcements concerning Charlotte’s job market, which will grow by over 1,500 positions thanks to a corporate relocation and an expansion.

The biggest impact will be made by Sealed Air Corporation, a Fortune 500 company which will be relocating its corporate headquarters to Mecklenburg County in the Charlotte, N.C. area. The company, which boasted $7.7 billion revenues in 2013, will create 1,262 jobs in Charlotte by the end of 2017. Sealed Airs’ annual average salary will be $119,482, more than double the Mecklenburg County average salary, which currently stands at $59,046.

Sealed Air will relocate its Elmwood, N.J. corporate headquarters to Charlotte, as well as parts or the whole of its facilities in Saddle Brook, N.J., Danbury, Conn., Racine Wis. and Duncan and Greenville, S.C. Sealed Air will invest $58 million through a long-term lease with a third-party developer who will build a new headquarters tailored to company needs.

Sealed Air will benefit from several incentives, such as a state Job Development Investment Grant (JDIG) program award that could add up to $36.7 million in tax rebates over the course of 12 years. One North Carolina Fund is also granting a performance-based award of $2.5 million.

Although carrying a smaller economical footprint, Spectra Group Inc. is also making a splash in Charlotte’s job market with the addition of 250 new financial services jobs. Also hailing from New Jersey, Spectra Group’s first Charlotte location will add 250 jobs by the end of 2018 with above-average salaries of $84,996. The company will also benefit from a JDIG grant that could produce aggregate benefits of up to $2.9 million over the course of 12 years.

Charlotte will become Spectra’s financial services delivery center. No information has been released regarding where Spectra will locate its Charlotte operations.

Image courtesy of Gov. Pat McCrory via Facebook

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Jones Lang LaSalle Income Property Trust Pays $25.5M for Charlotte Distribution Center

11 Jul 2014, 9:01 pm

By Eliza Theiss, Associate Editor

LaSalle Investment Management announced that Jones Lang LaSalle Income Property Trust Inc. has purchased the 346,500-square-foot Charlotte Distribution Center in Charlotte, N.C. for $25.5 million.

The REIT estimates a 6 percent capitalization rate based on the purchase price. The property is fully leased to Greenville, S.C.-based Michelin North America on 14-year term featuring 2.25 percent annual rental increased.  According to the Charlotte Business Journal, Michelin signed the lease for the Twin Lakes Business Park property in September 2013, meaning that there’s still over 13 years left on its term. The warehouse was previously leased by Ingersoll Rand, which vacated in spring 2013. The property was previously owned by Beacon Partners who purchased it from California-based LLC Kendall-Charlotte for $11.4 million, as reported by the Charlotte Business Journal.

This newest purchase offers the Jones Lang LaSalle Income Property Trust stable cash flow, geographic diversification of the portfolio and increased exposure on the eastern seaboard. “Our strategy remains to further grow and diversify the portfolio in terms of tenant mix, property type and geographic location,” said President and CEO of Jones Lang LaSalle Income Property Trust Allan Swaringen.” The purchase of Charlotte Distribution Center has brought the REIT’s total portfolio value to over the $900 million benchmark. Of this, five high-quality core properties worth in excess of $135 million were acquired in first six months of 2014.

Jones Lang LaSalle Income Property Trust is an institutionally-managed, non-listed, daily valuated REIT.

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Image courtesy of Beacon Partners

Crescent Communities Launches 320-Unit Luxury Apartments in 63-Acre Mixed-Use Development

27 Jun 2014, 9:50 pm

By Eliza Theiss, Associate Editor

Crescent Alexander Village, Crescent Communities’ 320-unit luxury apartment complex has opened in Charlotte, announced the developer.

The company’s latest project to complete in the Charlotte Metropolitan Area represents phase one of an ambitious 63-acre mixed-use development currently in the works at University Research Park. As previously reported, further phases will include 250,000 square feet of office space, a hotel and up to 75,000 square feet of retail.

The now completed Senator Royall Drive community is the work of architects The Preston Partnership. LandDesign is contracted as civil engineer and landscape architect. Construction loans issued by Regions Bank financed the development, which is now managed by Riverstone.

Crescent Alexander Village is a registered member of the Audubon International Signature Program and is pursuing Certified Signature Sanctuary status. The community is also NGBS Green Registered, featuring an extensive array of sustainable features such as Energy Star kitchen appliances and windows, efficient water fixtures, low voltage exterior lighting, recycling valet service, water-preserving plants used in landscaping and complimentary bicycles. Sustainability was implemented at Crescent Alexander Village since development, extensively using locally sourced and recycled materials. Furthermore, Crescent Communities contracted Sawmills Ltd., a North Carolina century-designated farm to reclaim timber from the project site. Wood and materials sourced onsite were incorporated into the design and construction of indoor community areas and the dog park.

Community amenities include a resort-style saltwater pool with sundeck and lounge area, outdoor yoga lawn, outdoor kitchen and fire pit, fitness center with dedicated crossfit workout area,  Starbucks coffee bar, community house with business center, catering kitchen, gaming area and private clubroom, garages and storage units, car care center, large wooded dog park and a pond with walking trail.

Crescent Alexander Village comprises 320 one-, two- and three-bedroom units ranging between 781 and 1,399 square feet. Rents range between $890 and $1,390 per month. Units are outfitted with stainless steel appliances, chef-inspired kitchens, walk-in closets and soaking tubs. Among the units are also eight cottage residences that evoke the style of Crescent’s signature Palmetto Bluff resort.

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Image courtesy of Crescent Alexander Village via Facebook

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