Archive for North Carolina News

Feb
25

1.33 Million SF Industrial Portfolio Sold in NC

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sold signsSparrowHawk Holdings-PowerOne LP is pleased to announce the acquisition of a three building, 1.33 million square foot portfolio in North Carolina from an entity controlled by GE. The portfolio is comprised of Class A bulk warehouse and distribution facilities and is 100% leased to strong credit tenants listed on the NYSE, including Proctor & Gamble, Sonoco Display and Packaging and MWI Veterinary Supply, Inc. (soon to be acquired by AmerisourceBergen).

The properties are strategically located in North Carolina’s Piedmont Triad (Greensboro, Winston-Salem and High-Point), a region well known for its pro-business fundamentals and strong growth, and are within one mile of Proctor & Gamble’s manufacturing facility at Browns Summit, slated for a $100 million expansion.

The acquisition was completed in partnership with Pure Industrial Real Estate Investment Trust, an unincorporated, open-ended investment trust that owns and operates a diversified portfolio of income-producing industrial properties in leading markets and trades on the TSX.

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Feb
23

Sales Volume Up 153% at C&W | Thalhimer

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sales up graphCushman & Wakefield | Thalhimer is pleased to announce robust activity in the first month of 2015. The firm’s ten Virginia, North Carolina and South Carolina offices completed 132 lease transactions totaling over 1,019,000 square feet and a transactional value of over $87,196,000 during the month of January – a 174% increase in lease volume over January 2014 performance.

In addition, Thalhimer executed 20 sale transactions in the month of January totaling over 1,892,000 square feet and over $136,116,000 in sales volume – a 153% increase in sales volume over January 2014 performance.

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Feb
11

NC 2nd Most Active State for Net Leased Properties

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Calkain logoAccording to Calkain Companies, 2014 ended with a flurry of activity as people rushed to close deals by year end. Overall we saw cap rates slide downward from 6.78% in November to 6.51% in December. The second half of 2014 overall, saw cap rates decrease month after month and we expect this trend to continue into the start of 2015. However, this may change before the summer due to a rise in interest rates. Investors will continue to look at secondary and tertiary markets more for net lease properties due to the lack of current supply in core markets. Investors will also continue to increase their risk to achieve higher yields. The first month of 2015 saw another drop in net lease cap rates from 6.51% in December to 6.33% in January.

The most active states for net lease activity from the past month was California (1st), North Carolina (2nd) and Florida and Arizona (joint 3rd). On January 22nd, 2015, Family Dollar shareholders voted to approve the retailer’s $8.5 billion merger with Dollar Tree, leaving the company’s unwanted suitor, Dollar General, on the losing side. The deal could close in March of this year. There will be a number of store closings from the merger, but new dollar stores will open at the same time.

SOURCE

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Dec
29

North Carolina Grocery Store Trends

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groceries2There is a fresh food movement underway and the competition is getting tasty! One of the most dominant and well-known fresh food grocery store brands in the country is Whole Foods.  It’s in the middle of building 1,000 new stores. But it’s not the only trendy grocery store snapping up real estate in the Triangle.

Steve Schemm enjoys showing off The Fresh Market that opened just this month on University Drive in Durham, from the poinsettias near the front door to the meat market. “The back wall really sets us apart from a lot of our competition. We’ve got great seafood offerings, great meat offerings,” said Schemm. Schemm is Regional Director of Operations for Greensboro-based Fresh Market. On the same day he was opening the Durham store, a colleague was opening a store in Plantation, Florida. Schemm says soon, the grocer will be opening another store in Charlotte and a first one in Fayetteville. “We’re expanding across our entire footprint right now,” said Schemm.

The Fresh Market plans to open up to 25 stores this fiscal year, mostly in the southeast United States. Opening day at The Fresh Market was busy, as expected. A year ago, Food Lion, North Carolina’s largest grocery store chain sat in that exact spot. Food Lion’s lease reportedly ran out. But two years ago, the Salisbury-based company announced it was closing more than 100 underperforming stores.

READ MORE HERE

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Sep
19

Thirty Eastern NC Burger Kings Sold

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Carrols Restaurant Group, Inc. today announced that on September 18, 2014 it exercised its right of first refusal to purchase 30 BURGER KING® restaurants in eastern North Carolina under the same terms and conditions of an existing purchase and sale agreement between the sellers and an unrelated third party. The total purchase price is approximately $20 million payable in cash at closing, and the assets to be purchased include 12 fee-owned properties. The Company anticipates that subsequent to closing it will market and enter into sale/leaseback transactions for 10 of the fee-owned properties for total estimated proceeds of $13 million to $14 million.

READ MORE HERE

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Aug
17

Lowe’s Foods Closing Four NC Stores

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Lowes Foods is closing four North Carolina stores this fall, the grocer announced Tuesday.

The decision to close four “under-performing” locations is part of Winston-Salem-based Lowes’ “broader growth strategy for investing in new stores and major store remodels,” according to the announcement.

The following stores will close by Sept. 19:

  • 247 Mount Jefforson State Park Road in West Jefferson,
  • 3480 Kildaire Farm Road in Cary,
  • 1145 East Marion St. in Shelby, and
  • 401 Cox Road in Gastonia.

Team members will be offered positions at other Lowes Foods and JustSave locations where possible, the grocer said. “If geographically impractical, we will provide financial assistance to help them,” Lowes said. Lowes Foods LLC is a wholly owned subsidiary of Hickory-based Alex Lee Inc.

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Jul
29

NC Hotel Room Demand Up Substantially

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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.

READ MORE HERE

LINK TO PDF REPORT HERE

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Jul
16

Where is the New Construction Happening in the Carolinas?

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The Expansion Index from Reed Construction Data is a 12 to 18 month “look ahead” at the construction marketplace. It indicates whether a location’s construction volume is expected to expand or shrink in the upcoming 12 months. The data is all commercial, non residential data, with vertical markets such as retail, medical, government, education, etc. included. A value of 1.0 or better indicates an expanding market. A value of 1.0 or less indicates a contracting market. The Expansion Index is updated monthly, with the chart below representing data from July 2014 by MSA in the Carolinas. I will try to post this data monthly going forward.

Be sure to e-mail this post and chart to your contacts or co-workers that would find it useful by clicking on the red e-mail button at the bottom of this post.

 

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Jul
01

Family Dollar to Close 30 Stores in the Carolinas

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Family Dollar Stores Inc. will close 30 stores in the Carolinas as part of a companywide effort to improve financial performance.

The Matthews-based discount retailer has seen its earnings falter during the last 18 months. It announced in April that it would close 370 underperforming stores, slow new-store growth and take other strategic actions, including job cuts.

That list of underperforming stores includes 19 in North Carolina and 11 in South Carolina. Three Charlotte region stores in Concord, Bessemer City and Oakboro will close.

Each Family Dollar store employs eight to 10 workers. That means as many as 3,700 employees companywide could be affected by the closings. Family Dollar “will do our best to place impacted Team Members at nearby stores,” spokeswoman Bryn Winburn writes in an email.

READ MORE HERE

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May
21

Cushman & Wakefield | Thalhimer Announces 1Q Transactions

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Cushman & Wakefield | Thalhimer is pleased to announce the firm’s ten Virginia, North Carolina and South Carolina offices completed 419 lease transactions totaling over 3,134,000 square feet and a transactional value of over $111,659,000 during the first quarter of 2014.   Industrial building transactions of 1,975,927 square feet accounted for the largest amount of space leased.  Office and retail leases amounted to 673,423 and 485,644 square feet respectively.

In addition, Thalhimer reported 59 sale transactions in the first quarter totaling over $294,873,000 in sales volume and over 4,300,000 square feet.  The sales included industrial, office and retail buildings and land transactions.  Overall, year-to-date volume exceeds $406,530,000.

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Apr
30

Outer Banks Real Estate Market Report Released

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Leading Northeastern North Carolina real estate firm, Coldwell Banker Seaside Realty, is pleased to announce that their 2014 first quarter Outer Banks Real Estate Market Report is now available for download on their website.

The Market Report compiles real estate sales information for the Outer Banks and Northeastern NC including Corolla, Duck, Kitty Hawk, Nags Head, Manteo, and Hatteras Island.

The data contained on the report is broken down by area and recaps the number of homes sold, the average days a listing was on the market, along with the average sales price. Some of the figures contained on the report are based on information obtained from the Outer Banks Association of REALTORS® MLS.

“The first quarter was off to a sluggish start,” said Pamela Kulsa Smith, Vice President of Sales and Relocation at Coldwell Banker Seaside Realty. “However, with the snow and cold now behind us, business is picking up and we are anticipating a strong second quarter.”

READ MORE HERE

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Mar
17

Sbarro to Close Four Stores in the Carolinas

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Still unable to generate enough dough, pizza chain Sbarro LLC is back in bankruptcy court protection looking to cut more costs. The Italian quick service and casual table dining restaurant chain operates 217 company-owned restaurants nationally and 582 franchised restaurants globally with annual revenues over $38 million.

As part of its latest restructuring efforts, Sbarro is looking to reject 183 store leases and has already moved out of the properties. Forty-six of the stores are leased to General Growth Properties; 27 to Simon Property Group, 20 to CBL & Associates, and 13 to Rouse Properties, with the remainder to various other landlords.

According to Fitch Ratings, the Sbarro bankruptcy does not portend a widespread increase in bankruptcies of U.S. restaurants, but rather is more an isolated example of a brand that had lost its competitive position and relevancy with consumers.

REVIEW LIST OF LOCATIONS HERE

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Mar
04

Landlords – Who Has a Copy of Your Rent Roll?

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I received a call last week from an acquaintance who knew that I am in the appraisal business. He owns a multi-tenant industrial building, and he told me a story that I thought some of you might be interested in.

He said that he re-financed the 90+% leased industrial building  last summer. The regional bank that did the loan had one of the National Multi-Service Firms (brokerage, leasing, management & valuation) do the appraisal. My friend gave the appraiser the typical information, including a detailed rent roll. Within six months of closing the loan, a month-to-month tenant, and another tenant whose lease expired in November, vacated their space. Both of the vacating tenants relocated to buildings managed and leased by the same National Multi-Service Firm that did the appraisal. Coincidence? Perhaps, but my friend (who now has a 71% leased building) doesn’t think so. He is convinced that leasing agents had access to the rent roll that was provided to the appraiser in confidence. He called the appraiser a “lead generator” for the leasing division, and has made his banker aware of his concerns.

So, I ask again….do you know who has a copy of your rent roll?

If you have had a similar experience, I would like to hear about it. E-mail me or call me at 803-772-8282 ext 110.

Michael Dodds, MAI, CCIM

 

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Dec
30

Elon Student Housing Complex Sold

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Crest at Elon, a student housing facility in Elon, NC, has traded for $4 million. The student housing community caters to the students of Elon University, a private liberal arts school.

The 42-unit, 168-bed student housing facility is located at 756 E Haggard Ave. on the Elon University campus. The university is master leasing the 50,400-square-foot facility. The sales price represents an 8.81% year one cap rate based upon the Loopnet listing.  The property offers a clubhouse lounge with a computer lab, meeting rooms and fitness center. Unit amenities include a bedroom furniture package with built-in desk in every bedroom, private bathrooms in each bedroom, full size washer/dryer, and eat in kitchen fully applianced including dishwasher and microwave. All utilities are included in rent.

A California-based private investment group purchased the student housing facility. The buyer elected to keep Priess as the management company for the property, in order to maintain a strong relationship with the university.

 

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Nov
25

Carolinas Continue Rebound from Great Recession

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Charleston has significantly improved its gross domestic product from the depths of the Great Recession, according to recent data from the Brookings Institution.

In its Metro Monitor for September, Brookings examines the 100 largest U.S. metro areas for four key metrics:

  • gross product
  • home prices
  • jobs
  • unemployment

Those indicators are studied at the depths of the recession, during the recovery, and where they stand currently. Brookings then ranked the cities based on improvement in each of those categories.

When it comes to rebounding from its lowest point, Charleston ranked No. 9 in GDP improvement, gaining 17 percent from the third quarter of 2009 to Q3 2013. It ranked 12th in job creation, gaining 9 percent from Q4 2009.

READ MORE HERE

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