Archive for Charlotte
Richmond, VA-based Landmark Apartment Trust of America, Inc. has acquired 100 percent of the membership interests in Riverview Partners SC, LLC, which owns Reserve at River Walk, a multifamily residential apartment project in Columbia, South Carolina.
The purchase price for the acquisition is approximately $15,254,800. The new first mortgage on the property is $10,789,678.
The River Walk Property is comprised of 201,724 rentable square feet and contains 220 units. As of April 30, 2013, the River Walk Property was 96.82% occupied.
The site is in the northwest corner of the intersection at Harding Place and East Morehead Street. The Charlotte real estate firm plans to assemble several properties at the location, which overlooks the Little Sugar Creek Greenway and is across Morehead from the Carolinas Medical Center campus.
Crescent plans to assemble about 2 acres for the complex, according to a person familiar with the plans. The company has not yet acquired the property for the project, which would feature underground parking. Several low-rise office buildings are currently located at the site.
According to the latest report by Real Data, nearly 7,500 new apartment units are under construction right now in the Charlotte metro area. More than 2,000 of these units are located in SouthEnd and Downtown. Developers have plans for more than 10,000 additional units throughout the area. Once again, the areas in and around Downtown including SouthEnd, Midtown, NoDa and Southpark lead.
Consumers continue to show a strong preference for apartments versus buying a home. Currently, the average vacancy rate at an apartment community in the Charlotte area is 6.2%. The average rental rate is $842 per month, which is considerably higher than the average of $708 per month reported just three years ago. Same-unit rent growth, which measures the growth in rents at existing communities, has grown at more than 4% annually for the last two years.
What makes an apartment market a “top” market?
Is it single-digit vacancy rates and double-digit rental rate growth? Can investors simply look at the most recent data from industry researcher Axiometrics Inc. and make their decisions based on numbers alone? If they do, they might end up investing in markets that are performing well today but lack any future growth prospects.
Or should investors take their cue from Wall Street and stick to the coastal markets—the so-called Sexy Six that regularly attract institutional investors? In doing so, investors might end up competing with every other investor and paying cap rates below 4 percent for assets that have little or no upside.
“You don’t want to confuse rent growth, occupancy or architectural attractiveness with the top markets for investments,” warns Jeffrey Friedman, chairman, president and CEO of Associated Estates Realty Corp., a Richmond Heights, Ohio–based apartment REIT with a portfolio of 52 properties containing 13,950 units in 10 states.
Two Charlotte-area real estate investors have teamed with outside investors to purchase the 44-unit Pines on Wendover apartment complex in Charlotte’s Cotswold area.
Eric Speckman, and Thomas Norman partnered late last month with investors based in Virginia, New Jersey, New York and Pennsylvania on the acquisition of the property, which is on North Wendover Road.
The new ownership entity is called The Pines on Wendover. The group’s members include Ed Peete, a developer based in Arlington, Va.; New Jersey-based Dearborn Holdings; New York-based Mascia Development; and JMJ Property Co. in Pennsylvania, as well as Speckman and Norman.
And while retail property owners face challenges, such as a still-wobbly economy, brokers and analysts say the sales show investors are bullish on the Charlotte area.
Last year, 433 retail properties sold for about $600 million in the Charlotte-Gastonia-Rock Hill metropolitan area, according to CoStar Group, a real estate analytics firm.
Many of the sellers were large investors that sold entire portfolios of properties. Local brokers say Charlotte saw some significant property deals starting in 2011. Both 2011 and 2012 were the strongest years since 2007, the CoStar data shows.
DDR Corp. has purchased two retail centers in North Carolina, totaling approximately 1.3 million square feet, for a combined purchase price of $151 million. The company bought the 852,000-square-foot Carolina Pavilion in Charlotte from Blackstone Real Estate Partners VII for $106 million. The center is 94 percent leased and anchors include Target, Kohl’s, Nordstrom Rack, Ross Dress for Less, Bed Bath & Beyond and AMC Theatres. Recent leases with PetSmart and Golfsmith will soon fill 85,000 square feet of currently vacant space at the center.
DDR Corp. also acquired Poyner Place, a 434,000-square-foot retail property in Raleigh, for $45 million. Tenants for the 96 percent leased center include Target, Ross Dress for Less, Old Navy, World Market, Shoe Carnival and Pier 1 Imports. Both transactions closed in late December 2012.
Beachwood, Ohio-based DDR Corp. is a self-managed REIT that owns and manages 459 centers totaling 116 million square feet in 39 states, Puerto Rico and Brazil.
Raleigh’s Paragon Commercial Bank has agreed to purchase the 16,427-square-foot Office on the Park building in Charlotte on Morrison Boulevard in SouthPark, according to real estate sources, and the bank has listed its current office space at Piedmont Town Center as available for sublease.
The two-story, Class-A building is at 6337 Morrison Blvd., next to the Specialty Shops on the Park. It is currently occupied by UBS Financial Services Inc., but UBS is slated to relocate its SouthPark branch to the SouthPark Towers on Fairview Road in January.
H.C. “Smoky” Bissell, chairman of The Bissell Cos., and Alice Harney own the property and listed it for sale with Cassidy Turley earlier this year. The asking price for the building is $5.75 million, according to listing materials.
Parkway Properties, Inc. has announced that it has entered into a purchase and sale agreement to acquire 525 North Tryon, a 406,000 square foot office tower located in the central business district (CBD) of Charlotte, North Carolina as part of a three-property transaction. All three acquisitions are subject to customary closing conditions and are expected to close by the end of the fourth quarter of 2012.
Parkway is under contract to acquire 525 North Tryon for a purchase price of $47.4 million, or $117 per square foot. 525 North Tryon was built in 1998 and is a 19-story, Class A office tower with an attached parking garage. The building is currently 69.8% leased with an average in place gross rent per square foot of $19.61. 525 North Tryon is expected to generate a 2013 estimated cash net operating income yield of approximately 4.7%. Parkway will own 100% of the asset and does not plan to place secured financing on the property at this time. Closing is expected to occur by the end of the fourth quarter 2012 and is subject to customary closing conditions.
Crescent Resources will break ground next month for a 320-unit apartment complex in Charlotte’s University Research Park called Circle Alexander Village.
The $33.6 million project is planned for a 27-acre site on Senator Royall Drive, just south of Mallard Creek Church Road. The complex will feature one-, two- and three-bedroom units, with the first units expected to be available in the fall.
With Circle Alexander village, Crescent has 2,300 multifamily units in projects valued at $340 million under construction in the Southeast, including Circle SouthPark in Charlotte.
“This is a very desirable location in close proximity to shopping and employment and is perfect for our next award-winning multifamily community,” Ben Collins, regional director for Crescent’s multifamily division, says in a release.
Liberty Property Trust has acquired three industrial properties in Shopton Ridge totaling 375,918 square feet for $16 million.
The newly acquired buildings are located at 4835, 4925 and 5033 Sirona Drive in Charlotte, with immediate access to I-485, I-85 and I-77, and are located within two miles of Charlotte Douglas International Airport. The industrial assets have 30-foot ceilings and Interstate access. Combined, the buildings are approximately 88 percent leased.
Liberty’s 375,918 square foot acquisition includes:
- 4835 Sirona Drive offering 127,759 square feet and is currently 78.1% leased. Tenants in the building include Sirona Dental and Nippon Express USA.
- 4925 Sirona Drive offering 128,159 square feet and is currently 100% leased. Tenants include Houston Wire & Cable and DHL Global.
- 5033 Sirona Drive offering 120,000 square feet and is currently 86.8% leased. Tenants include Cort Furniture, TricorBraun and AMT DataSouth.
KBS Legacy Partners Apartment REIT, Inc. has closed on its $45.8 million purchase of the 301-unit Wesley Village apartment complex.
The property, which is 93 percent occupied, is on nearly 15 acres in the Wesley Heights neighborhood, near the intersection of Freedom Drive and Thrift Road. The seller was an affiliate of Wood Partners.
“The KBS Legacy Partners team has identified and acquired several well-performing assets with solid growth potential, and Wesley Village is no exception,” W. Dean Henry, chief executive of KBS Legacy Partners Apartment REIT, says in a statement.
A limited liability company managed by Hadi Atri, chief executive of Re/Max Executive Realty, has purchased an 18,500-square-foot office building in SouthPark for $3.2 million.
The fully occupied multitenant building at 2901 Coltsgate Road is the home of Re/Max’s SouthPark office. Tiffany Slayden of Brackett Flagship Properties, represented the seller, T Hall Enterprises I, a limited liability company managed by Thomas J. Hall. The buyer was not represented. Brackett Flagship will continue to manage the property.
The previous sales price, in June 2007, was $3,954,000 ($207.60/SF). It was built in 1993 and sits on a 1.12 acre site. The tax map number is 183-132-10.
Parkway Properties has agreed to buy the 20-story NASCAR Plaza office building for approximately $100 million.
The Charlotte Business Journal reported earlier this month that the Orlando, Fla.-based real estate investment trust had made an unsolicited offer to buy the 390,000-square-foot uptown building as well as the 525 North Tryon building. Parkway acquired the Hearst Tower from Bank of America earlier this year for $250 million.
The NASCAR Plaza building, owned by Trinity Capital Advisors and Rubenstein Partners, is 88 percent leased, with an average in-place rent of $25.61 per square foot. NASCAR has a lease for 139,000 square feet that runs through May 2021, and Chiquita Brands International Inc. signed a lease for about 138,000 square feet this year after deciding to relocate its headquarters from Cincinnati.
Subsidiaries of KBS Legacy Partners Apartment REIT Inc have entered into an agreement to acquire Wesley Village, an apartment complex containing 301 apartment units on 14.8 acres of land in Charlotte, NC.
The purchase price of Wesley Village is approximately $45.8 million plus closing costs.
Wesley Village is adjacent to the Central Business District (CBD) and consists of 301 apartment units, encompassing 308,377 rentable square feet. Wesley Village was constructed in 2009 and is currently 92% occupied.
KBS intends to fund the purchase of Wesley Village with proceeds from a mortgage loan and proceeds from its ongoing initial public offering.