Adler Kawa Real Estate Buys 224KSF Office Space in Office Park
- Aug 08, 2014
By Eliza Theiss, Associate Editor
One year after purchasing the 223,850-square-foot Carmel Executive Park, Florida-based Adler Kawa Real Estate Advisors (AKREA) has made another acquisition in the Charlotte Metropolitan Area, picking up 249,000 square feet of office space at Oak Hill Business Park.
AKREA purchased the four-building portfolio through the Adler Kawa Real Estate Fund II from an undisclosed private equity group. The latter was represented by CBRE Miami’s First Vice President Patrick Gildea and Vice President Ralph Oldham, while financing for the acquisition was secured by Vice Chairman Charles J. Foschini and First Vice President Christopher A. Apone. According to the Charlotte Business Journal, the acquisition was made at a price of $16.6 million.
“AKREA’s acquisition of Oak Hill Business Park is a text book example of our approach to purchasing assets in growth markets at a favorable cost basis with an eye toward creating value,” said Matthew L. Adler, president and CEO of AKREA.
Located in Charlotte’s I-77 Corridor submarket, the 68 percent-occupied portfolio was in line with AKREA’s acquisition strategy that targets multi-tenant, management-intensive properties with an opportunity for value creation. A series of capital improvements and physical upgrades will follow at the property, such as renovation to building lobbies, the company announced. An aggressive leasing and management strategy will also be implemented, to which purpose AKREA will bring in Trinity Partners as third-party leasing agent. Adler Realty Services, an AKREA affiliate specialized in managing and leasing multi-tenant office and industrial assets, has been appointed onsite property manager.
Initially developed in 1989, the 67-acre Oak Hill Business Park has since emerged as one of the most attractive business parks in Metrolina. Its location in the I-77 submarket offers direct access to Charlotte Douglas International Airport, I-77 and I-485. Average suites at the Class B properties do not exceed 5,000 square feet. The portfolio houses a varied mix of over 30 national and regional tenants, such as Walmart, Paychex and Canon, with no one tenant leasing more than 7.5 percent of the space.
Adler Kawa Real Estate Fund II is focused on purchasing multi-tenant office and industrial assets in the southern and eastern U.S. Since its early 2013 launch, 55 percent of the funds’ $56 million in capital has been deployed, purchasing six properties comprising 950,000 square feet of office and industrial space, valued at nearly $100 million.
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Image courtesy of Adler Kawa Real Estate Advisors