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Trinity Capital Advisors and DRA Advisors JV Acquires 584 KSF 400 South Tryon

17 Oct 2014, 10:20 pm

By Eliza Theiss, Associate Editor

400 South Tryon

Trinity Capital Advisors has been heating up the Charlotte commercial real estate market of late.  The company recently announced the sale of the 313,000-square-foot Permiter Woods Business Park and the development of 1000 South Tryon, a new 300,000-sq.-ft. Class A office building set to rise in Charlotte’s South End. In the latest news, it now purchases 400 South Tryon Street for an undisclosed amount.

The 584,315-square-foot office tower was bought in a joint venture with DRA Advisors, LLC. According to the Charlotte Business Journal, the partnership acquired the 33-story tower from an affiliate of UBS Realty Investors. The seller was represented by Cassidy Turley.

A prized skyscraper of Charlotte’s downtown core, 400 South Tryon is located between the city center and downtown Charlotte’s popular cultural district, offering swift access to the BB&T Ballpark, Bank of America Stadium and the Romare Bearden Park.  The Class B office building is 92 percent occupied, with Duke Energus as anchor tenant. Trinity partners has been contracted to handle leasing and property management.  400 South Tryon features an attached 526-car attached garage and a full-service restaurant.

The acquisition is in line with DRA’s office asset investment criteria that targets Class A and B properties with over 70 percent occupancy rates. It is also in line with Trinity;s investment strategy that focuses on acquiring and developing office, industrial and mixed-use assets in the Southeastern U.S. Trinity’s recent activity also includes rounding out its ownership of the 517,392-sq.-ft., six-building Toringdon office park. It snapped up the last two properties, and announced the development of Toringdon Way, a new 175,000-square-foot office property in the park.

Click here for further Charlotte market data

Image courtesy of Trinity Capital Advisors

108KSF Northlake Commons Fetches $31.5M, While 65KSF Terraces at University Place Sells for $8.2M

11 Oct 2014, 2:26 am

By Eliza Theiss, Associate Editor

Northlake Commons

Charlotte’s retail market continues to be red-hot. Most recently an affiliate of Lincoln Property Co. picked up the Northlake Commons retail center for $31.5 million, reported the Charlotte Business Journal.  The seller, a joint venture comprised of Ferncroft Capital and a fund advised by Crow Holdings Capital, was represented by Berkeley Capital Advisors.  The partnership had owned the 108,000-square-foot retail center since June 2011, when it picked it up for $22 million.

Located off I-77 at West WT Harris Boulevard and Reames Road in Charlotte, the grocery-anchored Class A retail was built in 2006. It consists of 80,000 square feet of gross leasable area and five outparcels.  Anchor tenants include Dillard’s, Belk, AMC Theater, Macy’s and Dick’s Sporting Goods. Other tenants include Panera Bread, Olive Garden, Red Robin, Men’s Warehouse and FedEx Kiko’s. Northlake Commons houses over 150 shops and restaurants. Its 10-mile catchment area has a population of 465,680 with average household incomes of $72,837. Northlake Commons is located in the vicinity of highly popular Northlake Mall. It’s also only 10 minutes away from Charlotte’s downtown.

Terraces at University Place

In other retail news, Mount Pleasant, South Carolina-based Ziff Properties acquired the 64,960-square-foot Terraces at University Place from an unidentified seller. According to The Charlotte Observer, Ziff dropped $8.2 million on the property, less than half of the $15.7 million it fetched at its last sale in 2005. The Providence Group represented Ziff Properties in the sale.

The 64,960-square-foot retail center is located on North Tryon Street, across from the UNC Charlotte campus and within walking distance of multiple light rail stops. Major tenants of the 1999-built retail center include Smoothie King and Flying Saucer. Terraces at University Place’s five mile catchment area has a population of 161,074 with an average household income of $68,113.

Click here for additional Charlotte market data

Images courtesy of New South Properties of the Carolinas and Ziff Properties

Q&A: Ken Loughran, Westwood Financial

6 Oct 2014, 3:59 am

By Eliza Theiss, Associate Editor

Westwood Financial Corp. is one of the largest privately held owner-operators of retail properties in the U.S., currently holding more than 115 shopping center and retail properties in 26 metropolitan markets. Based in Los Angeles, the 44-year-old company boasts satellite offices in Atlanta, Dallas and Scottsdale, Ariz.

Kenneth Loughran, senior vice president of asset management, has been with Westwood Financial  since 1999. He oversees the leasing and property management departments, as well as redevelopment projects. Loughran also serves on the company’s executive committee. Prior to joining Westwood Financial, he was with Auburndale Properties in Los Angeles from 1988 to 1999.

Loughran graduated from the University of California, Berkeley, with an A.B. in political science and received a Juris Doctorate from Santa Clara University. He is a member of the International Council of Shopping Centers.

He offers his views on the Charlotte, N.C., market, where Westwood Financial has been investing for the past three years. It currently owns four grocery-anchored shopping centers there totaling 315,000 square feet: Cherry Road Crossing, Johnston Road Plaza, Steele Creek Crossing and Steelecroft Shopping Center.

Q: Why did you decide to invest in Charlotte?

A: It’s a major city in the south, with solid employment and overall low vacancy rates. It’s also easy to access, thanks to Charlotte Douglas International Airport, with direct flights from LAX.

Q: How has the Charlotte retail market been performing, and how has that impacted your management and leasing strategy there?

A: Charlotte’s performance is excellent. The local retail market has an overall vacancy rate below 2 percent and expected to further improve! Low vacancy means we can be more selective in which tenants we lease to.

Q: WFC recently signed Publix as the anchor tenant to Cherry Road Crossing. What determined the selection of Publix?

A: Bi Lo, which was the previous anchor tenant, sold a number of its stores to Publix. So the selection of Publix as the new anchor was a collaborative effort to help reinforce the assignment from Bi Lo to Publix, and furthered the already outstanding Publix/WFC relationship that was established by the operations team over a 10-year period.

Q: How does Charlotte’s current retail market compare to the national retail performance?

A: Net absorption of retail/commercial real estate continues to be positive nationally, as well as in the Charlotte MSA.  The Charlotte retail market, with 62.3 million square feet of retail space, hovers at 7 percent vacancy with new product delivered in the second quarter of 2014. This is the 39th lowest vacancy rate of all U.S. major cities. Comparably, the national vacancy rate is 6.5 percent. With interest rates remaining low, Charlotte has multiple new developments in the development pipeline in both the multi-family and retail sectors. Although new retail projects are underway, the annual delivery of square footage has been outpaced by absorption.

Grocery-anchored centers as well as single-tenant properties continue to be in strong demand, as Charlotte ranks in the top 10 fastest-growing cities in the U.S. Cap rates remain steady for Class A properties, ranging from 5.25 to sub-7 percent. Furthermore, the grocery wars that rage on nationally appear with focused intensity in the Charlotte MSA, with Kroger’s purchase of Harris Teeter, Publix’s entry into North Carolina, multiple new Walmart Neighborhood Markets and Whole Foods’ expansion from one store to three and the potential entry of Sprouts.

Q: What is the outlook for Charlotte’s retail market?

A: Positive. The unemployment rate is 6 percent, and consumer spending is improving moderately.  National home builders have restarted lot contracting and expanding entitled subdivisions, thus driving retail development. Charlotte Premium Outlets, a joint venture between Simon Property and Tanger Factory Outlets, opened in summer 2014 (details here). New restaurant concepts — including national brands, regional concepts and mom-and-pop startups — are emerging in burger, chicken, BBQ and bakery categories. With over 700,000 square feet of new retail projected, the growth has eclipsed annual deliveries over the past four years and is expected to continue. In addition, investors are jockeying for shopping center offerings in the Charlotte MSA.

Q: What are your future investment plans for the Charlotte area?

A:  If the right opportunity presents itself, Westwood Financial Corp. will definitely be a buyer.

Trinity Capital Advisors Announced 300KSF Office Tower, Sells 313KSF Perimeter Woods Business Park

3 Oct 2014, 11:44 pm

By Eliza Theiss, Associate Editor

Trinity Capital Advisors has announced plans to develop a new 300,000-square-foot office tower in Charlotte’s South End submarket. The 14-story office tower will be located on the gateway corner of Morehead and Tryon streets, offering sweeping views of the CBD skyline. Named 1000 South Tryon Street, the project will be a joint venture between Trinity Capital Advisors and Honey Properties Inc., the site’s longtime owner.

The Class A office building will feature 22,500-square-foot floorplates, street-level retail and a 900-car parking deck. The latter will feature a multifamily façade fronting Morehead Street.  The project’s design is signed by Atlanta-based Smallwood Reynolds Architects. Development is estimated to take 15 months. Construction will commence as soon as an anchor tenant is signed. Trinity Capital Advisors affiliate Trinity Partners is marketing 1000 South Tryon Street.

‘The existing product in SouthEnd/Midtown cannot keep up with the current tenant demand,” said Trinity Partners’ Rhea Greene. “With a Class A vacancy rate of 5 percent, the timing could not be better for a new building. The broker feedback is consistent about the need for product.”

Perimeter Woods Business Park

Trinity Capital Advisors has recently ramped up activity in Charlotte.  In early September, the company sold the 313,407-square-foot Perimeter Woods Business Park to Stockbridge Capital Group. The 81 percent-leased business park was Trinity’s last remaining asset in the Perimeter Woods mixed-use development, which also included the 300,000-square foot Perimeter Woods retail corridor and the 125,000-square-foot Class A Linville Building office development. Nineteen acres of the Perimeter Woods mixed-use project were purchased by Wood Partners 2009 and 2013 to develop the 246-unit Perimeter Lofts and 203-unit Perimeter Station luxury apartment projects.

As previously reported, Trinity Capital Advisors also purchased the Toringdon 4 and Toringdon 6 office buildings, attaining ownership of the entire six-building, 517,392-square-foot Toringdon Office Park.

Click here for further Charlotte market data

Image courtesy of Trinity Capital Advisors

Hines Puts 625KSF Charlotte Plaza on the Market

26 Sep 2014, 8:10 pm

By Eliza Theiss, Associate Editor

Charlotte Plaza

The Charlotte Plaza office high-rise is up for sale, making it the third uptown office tower to hit the market this year, reports the Charlotte Business Journal. Charlotte Plaza’s owner, Hines, has listed the asset with Cushman & Wakefield.

Located at 201 South Colle Street, the 27-story tower features 625,026 square feet of space. Floor plates average 23,038 square feet. Amenities include an eight-level 814-space parking facility, a landscaped reflective pool, a fountain, outdoor artwork and fine dining restaurant on the top floor, which offers sweeping views of the Queen City.  The property is also LEED registered.

Major tenants include Capgemini, Citco, Grant Thornton, Robert Half International and Charlotte School of Law. The latter occupies 250,000 square feet, which it leased in 2012, according to the Charlotte Business Journal. According to the same source, occupancy is at 91 percent. The property is connected to Charlotte’s Overstreet Mall, which offers a bevy of retail and restaurant options.

Charlotte Plaza is owned by Hines Charlotte Plaza L.P., a subsidiary of Hines. It was acquired by Hines in 2007 on behalf of its U.S. Core Office Fund L.P. Hines is also the property manager. The downtown office tower was built in 1981 and designed by HLM Design and JPJ Architects Inc. with construction by McDevitt & Street. It underwent renovation in 1994 by Metric Constructors. According to the Charlotte Business Journal, Charlotte Plaza’s parking facility can support a three-level, 357-parking space expansion.

Two other Uptown office towers have been sold this year. Fifth Third Center was picked up by Cousins Properties for $215 million, while Epic UK has secured the 15-story Ally Center for $109 million.

Click here for additional Charlotte market data

Image courtesy of Hines

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