Adler Kawa Real Estate Advisors (AKREA), a joint venture between Adler Group and Kawa Capital Management, has announced the acquisition of Carmel Executive Park. The master-planned office park was purchased for $25,459,000 or $113.69 per square foot.
The 223,850-square-foot Class B+ office park located at the intersection of Carmel Pineville-Matthews Roads comprises six buildings. AKREA purchased the South Charlotte asset from Pizzagalli Properties LLC, a Burlington, VT-based privately held, full-service real estate developer. Pizzagalli developed the property between 1981 and 1990 and was the owner until its current sale. CBRE Vice President Patrick Gildea and CBRE Executive Vice President Ryan Clutter marketed the business park on behalf of Pizzagalli.
Carmel Executive Park’s more than 100 tenants lease 95 percent of the property, with around 10,000 square feet vacant and awaiting tenants. The new owners plan on making capital improvements throughout the asset. AKREA will focus on renewing the property’s current tenants base, which includes Liberty Mutual Insurance, JP Morgan Chase Bank, Crump Life Insurance Services, Bank of North Carolina and Hanson Brick East. Leasing and marketing is handled by Colliers International broker Brad Grow. The property’s on-site management team will stay on with AKREA.
According to the Charlotte Business Journal, the sale was financed through Goldman Sachs. According to information released by AKREA, debt financing for the acquisition was secured in CBRE’s Debt & Equity Finance Group by Vice Chairman Charles J. Foschini, First Vice President Christopher A. Apone and Senior Vice President Compie Newman.
The purchase of Carmel represents the first acquisition of AKREA’s second fund, which has raised $50 million to date and has authorization to raise an additional $100 million. Adler Kawa Real Estate Fund II, a closed-end fully discretionary fund, is focused on purchasing multi-tenant office and industrial properties in the eastern and southern US. AKREA’s first fund transacted over 4.5 million square feet of assets valued at $460 million.
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Image courtesy of Adler Group’s Facebook page
Chart courtesy of Colliers International