Parmenter Realty Partners announced today that it is under contract to sell Fifth Third Center in Charlotte, North Carolina for $215 million to Cousins Properties, after purchasing the trophy office tower two years ago for $163 million. The 30-story, 697,817 square foot building is located at 201 North Tryon Street in Uptown Charlotte, and was purchased by Parmenter Realty Fund IV in 2012. Will Yowell, Jay O’Meara, and Patrick Gildea from CBRE represented Parmenter in the sale.
“Fifth Third Center is a premier and iconic asset and was a solid performer in Parmenter Fund IV,” said Darryl Parmenter, Chairman and Chief Executive Officer of Parmenter Realty Partners. “We accelerated our business plan at the property and felt the time was right to sell. This will be the second asset from Parmenter Realty Fund IV that we have sold.”
“Fifth Third Center is considered one of only a handful of AA quality buildings in Uptown Charlotte,” said John Davidson, Managing Principal Southeast Region. “During our ownership we restructured the Fifth Third Banklease and extended the McGuire Woods lease adding significant lease term and value to the property. We also leased approximately 40,000 square feet of new leases, to tenants including Winstead PC and Insight Global.”
The roughly 40,000-square-foot grocery store and pharmacy is expected to open early next year, Walmart spokesman Bill Wertz told GreenvilleOnline.com. The project includes a gas station, Wertz said. “It’s been a very popular format among our customers and it’s one that we expanding throughout the country pretty aggressively,” he said.
The project is on about 6.3 acres off State 14 near the State 417 intersection in Simpsonville and across the road from a BI-LO grocery store.
The new store is the third in Greenville County, with one in Greer and the other in the Eastside, both along Wade Hampton Boulevard. A Neighborhood Market also is in Myrtle Beach and another is under construction in Rock Hill, he said.
Industry thumb rules state that the “useful life” of a hotel ranges from 30 to 40 years. After that the building and its equipment are either too old to renovate, or the property is no longer situated in a prime location. However, for a few hotels in the United States that are 50 years old, or more, they are just hitting the prime of their life. These “grande dames” are achieving premium occupancy and ADR levels compared to comparable youngsters.
To check up on the health of these aging facilities, PKF Hospitality Research, LLC (PKF-HR) analyzed the performance of historic luxury and upper-upscale hotels that opened prior to 1960 (e.g. Waldorf Astoria and The Greenbrier). Comparisons were made to the performance of comparable luxury and upper-upscale properties built since 1960. Only hotels that provided data for PKF-HR’s Trends® in the Hotel Industry survey each year from 2007 through 2012 (most current annual data available) were included in the study sample.
The study sample consisted of 41 historic hotels with an average age of 94.2 years, and an average size of 388 rooms. Eleven of the 41 historic properties are resorts, with the remaining urban/suburban full-service hotels. The contemporary sample averaged 22.9 years in age, and averaged 417 rooms. Fifty-six of the newer hotels were resorts, while another 282 were full-service properties.
Columbia’s Vista is about to get its first boutique hotel. Developers plan to build a five-story, 108-room Aloft hotel at the corner of Lady and Lincoln streets connected to the Washington Street parking garage.
The Aloft hotel will feature hip, high-end contemporary furnishings and interior design, ground-floor retail space and a bar called WXYZ.
“It’s contemporary and artsy and interesting,” said Fred Delk, executive director of the Columbia Development Corp., which encourages and guides investment in the Vista and other areas of the city. “It will a great contributor to the market. It will be like nothing else we have in Columbia.”
Co-owner Raj Champaneri said the location – a block from Gervais Street hotspots and two blocks from the Columbia Metropolitan Convention Center – was ripe for fresh property.
Lodging in North Carolina has had its best half year on record in terms of total room demand and best since 2011 in terms of growth over previous year, according to recent lodging data. Demand growth is up more than five percent year-to-date over 2013, and June was up more than six percent from last year. North Carolina’s year-to-date demand growth leads both U.S. (+4.1 percent) and South Atlantic (+4.5 percent) growth. Since 2000, year-to-date demand through June in the state is up more than nineteen percent.
National forecasts for lodging are positive in terms of both demand and ADR. North Carolina is no exception. ADR increased more than four percent (+4.3 percent) during the first half of 2014, similar to the growth seen nationally and regionally (US, +4.1 percent, South Atlantic, +3.7 percent). Like demand, ADR in North Carolina is at record levels for both June ($94.34) and for the first half of the year ($88.83). The chart below shows January through June ADR statewide from 2000-2014. ADR for this time period has increased nearly forty percent.
Cushman & Wakefield | Thalhimer has announced the sale of 4695 Franchise Street in North Charleston, South Carolina. Kurts Investments, LLC purchased the 6,303 sq.ft. industrial property situated on 1.03 acres from Atlas SC I SPE, LLC for $320,000 ($50.75/SF) and will utilize the property for his business, King Bean Coffee. The asking price was $370,000. The building was built in 1985, has 14′ ceiling heights and four drive-in overhead doors.
Philip Owens and Mark Erickson of Cushman & Wakefield | Thalhimer handled the sale negotiations on behalf of the seller.
CBRE| Columbia has announced the sale of the Stoneridge Office Park, a three-building office park at 220, 240 and 246 Stoneridge Drive in Columbia, South Carolina. The Park is located in the St. Andrew submarket. The office team of CBRE|Columbia, working with the CBRE office in Charlotte represented the buildings’ seller.
The three Class-B four-story buildings collectively total 185,094 rentable square feet and are 76.5% occupied. They were constructed in 1974, 1980, and 1984 on four parcels totaling 14.98 acres. The Park features excellent visibility from I-126 and is easily accessible from Stoneridge Drive. Major tenants include Siemens, Eaton, CH Robinson and Fortis College. Rental Rates are generally in the range of $14.50 to $15.50/RSF.
The sales price was $8,550,000, or $46.19 per square foot. The capitalization rate was not reported.
Many times, tenants look to their brokers to help them quantify just how much office space they need. For this reason, LeaseMatrix developed an Office Space Calculator, which we have embedded in a page on this website. It is pretty slick. Be sure to check it out by clicking “Office Space Calculator” on the right end of the menu bar at the top of this page.
Be sure to forward it to any contacts that might find it useful by clicking on the red e-mail button below this post.
Mike Dodds, MAI, CCIM
Spartanburg, South Carolina (July 2014): John Gray, CCIM and Drew Stamm of NAI Earle Furman represented the seller of 578 North Church Street in the sale of a 23,000 SF motel. Property is to be redeveloped.
Landrum, South Carolina (July 2014): Andrew Babb of NAI Earle Furman represented Carolina Alliance Bank in selling a 5,250 SF retail building at 1506 E. Rutherford Street.
Simpsonville, South Carolina (July 2014) Peter Couchell, CCIM and Rob Schmidt of NAI Earle Furman represented the seller of a free-standing 5,920 SF retail building located at 3952 Grandview Drive. The current tenant is Arizona Steakhouse. Peter Couchell and Ken Anderson, also of NAI Earle Furman, represented the buyer.
Greenville, South Carolina (June 2014): Jimmy Wright, Ted Lyerly, CCIM, and Brendan Gower, CPM of NAI Earle Furman represented SBW Capital Partners, LLC in the sale of a 3,360 SF retail property at 3023 White Horse Road to Moneyline Properties, LLC.
Anderson, South Carolina (July 2014): John Powell, CCIM of NAI Earle Furman represented the seller of 2021 Cardinal Circle in the sale of a 4,000 SF office building to RFG Anderson, LLC.
Boiling Springs, South Carolina (July 2014): Peter Couchell, CCIM and Robert Schmidt of NAI Earle Furman represented the seller in the sale of the 80,435 SF Bi-Lo shopping center known as Cypress Shopping Center in Boiling Springs, SC.
Greenville, South Carolina (July 2014): John Gray, CCIM and Drew Stamm of NAI Earle Furman represented the buyer of 1036-1050 N. Pleasantburg Drive in the purchase of a 10,323 SF retail strip shopping center for investment purposes.
Greenville, South Carolina (July 2014): John Gray, CCIM and Drew Stamm of NAI Earle Furman represented Blandin Auto Clean-Up in the sale of 0.63 acres at 1027 S. Main Street in downtown’s West End. Property is to be redeveloped for an 18 unit townhome project.
Anderson, South Carolina (July 2014): Peter Couchell, CCIM and Robert Schmidt of NAI Earle Furman represented the seller and the buyer in the sale of a 7,254 SF retail strip mall at 1815 E. Greenville Street.
Target Corp. has pulled back the curtain on its new small-format store, TargetExpress, in the “Dinkeytown” section of Minneapolis. The 20,000-sq.-ft. store is just steps away from the University of Minnesota.
Target plans to open four TargetExpress stores in 2015, with three locations in the San Francisco Bay Area, and one in the Highland Park area of St. Paul.
TargetExpress features an edited assortment of merchandise, including fresh produce, grab-and-go food and snacks, pharmacy, home, seasonal, electronics, and beauty. Rather than traditional shopping carts, the store has hand-held baskets and two-tiered carts that are specially designed for quick-trip shopping.
The Minneapolis store is also testing the retailer’s new “In a Snap” app, which enables guests to scan a poster in store and immediately shop items from the page.
Nestled in the foothills of the Blue Ridge Mountains, the Tryon International Equestrian Center sits in the quiet and bucolic region of Mill Springs, North Carolina. Grooms lead exhausted horses to barns while smartly dressed riders in navy blue jackets sit astride their steeds, eyes focused on the show ring in front of them.
The hustle and bustle of the center is punctuated by trainers shouting to be heard as loudspeakers blare announcements and rumbling water trucks wet down competition rings. “It’s exciting to have a facility of this caliber,” show secretary Jen Hicks said. “It’s a big boost to the community.”
The economic boost from the $100 million center and resort when completed is expected to send economic ripples throughout the Upstate.
“(The) big impact will be the hospitality industry, and food is part of that,” said Dr. David Hughes, assistant director of Clemson University’s Institute for Economic & Community Development. “Then you get these specialized suppliers of equine goods and services, and so you might see some regrowth in the retail of those services.”
$221 million. That’s a really big number. But it’s only a fraction of the dollar investment on the 20 downtown projects Upstate Business Journal is highlighting for their midyear update. The total overall investment to Greenville will be much, much greater.
These multi-millions of dollars are a testimonial to how rapidly downtown Greenville is growing. Properties in Greenville’s Central Business District are reaping premium prices. Vacant land inventory is almost nonexistent and buildings that were once abandoned and in disrepair are enjoying a makeover and new life.
While local developers such as Hughes Corporation, Hughes Investments, The Croft Company, Davis Development and others have played a major role in the city’s transformation, Greenville is now attracting out-of-town developers from Atlanta, Charlotte, Charleston and beyond. As our market continues to evolve and grow, experts see the interest continuing as more companies learn of all that Greenville has to offer.
Keep in mind that Integra has an appraisal office in Greenville, and we just published our mid-year Viewpoint surveys for the Greenville retail, industrial, office, apartment and lodging sectors. Email me at firstname.lastname@example.org if you would like a copy of these.
Michael B. Dodds, MAI, CCIM
In a special called meeting Thursday morning, council gave third reading to an ordinance selling a 7.48-acre parcel for almost $1.3 million to Cypress Development for the purpose of building a Walmart Neighborhood Market. Now all that’s left is for both the city and Cypress to close the real estate transaction. A date has not been set for the closing.
City Administrator John Yow has said money from the sale will be spent on some downtown demolition efforts and other improvements within the city.
The parcel is located immediately behind CVS, with frontage on both U.S. Highway 301 and Stonewall Jackson Boulevard. Cypress plans to develop a 41,000-square-foot Neighborhood Market on the site. The markets are about one-quarter of the size of a typical Walmart Supercenter.
Strong competition among large-scale buyers has helped fuel double-digit increases in per-room selling prices for hotels. Lodging Econometrics reported last week that average selling price per room soared 28% year-over-year to $150,223 per room in the first half of 2014, compared to $117,300/room in 1H 13. Prices for the first half of this year were also up 17% over the year-end average of $128,352 for ‘13.
“A complete economic recovery, a forecast for continued steady economic growth, receptive capital markets and a docile pipeline make it an interesting time for investors,” according to Portmouth, NH-based LE’s mid-year forecast. “Based on the makeup of their portfolios, it could be an ideal time to be both a seller of hotels, or conversely, an acquirer of additional assets. It could also be opportune to be a holder of existing assets seeking additional operating improvement and asset appreciation too.”
Competition is especially strong for higher-end assets,, as REITs and private equity groups with similar investment objectives vie for larger properties in the CBDs of major cities. The competition has been similar for hotels in the top resort destinations, which have been a little slower to recover. “As a result, these assets still have considerable earnings and appreciation potential ahead,” according to LE.
Florence-based specialty retailer Tomlinson Stores plans to build a 20,000-square-foot store on a section of the former Corley Lumber Mill site that’s slated for development as a mixed-use commercial project, according to NAI Avant.
Tomlinson, which operates nine stores in the Carolinas, bought a 2.71-acre section of a 70-acre development site in the 4800 block of Sunset Boulevard on the east side of the town of Lexington.
The Tomlinson store is part of the first phase in the mixed-use project that won earlier approval from the Lexington Town Council. Plans call for a commercial center containing about 236,000 square feet of retail and office space as well as 10 additional outparcels.
Besides retail, a multiple-screen theater and a multifamily apartment complex consisting of 250 to 300 units are planned for the property, said Ben Kelly, NAI Avant senior broker. Kelly along with NAI Avant broker Patrick Chambers represented the sellers in the transaction.