Charlotte Commercial Real Estate Wrap-Up – June 2020

CIP Real Estate picks up $76 million industrial portfolio. JLL inks two-floor office lease in downtown project. Catch up on our June list of Charlotte must-reads.
Charlotte. Image via Pixabay.com

Through June, the state of North Carolina was hit with a large spike of new coronavirus cases, leading Governor Cooper to prolong the second phase of its reopening plan by four weeks, adding an additional face mask requirement in public spaces. However, even with many restrictions in place, investors and developers remained active in Charlotte’s commercial real estate sectors. Read our June selection of Charlotte must-knows:

1. DEAL – CIP Real Estate acquires $75.5 million industrial portfolio.

Albany Road Real Estate Partners finalized its disposition of the 13 properties totaling 560,500 square feet in Charlotte, Concord, Mooresville and Rock Hill. At the time of the sale, the assets were 91 percent occupied. Albany acquired the buildings for $60.8 million in 2017. CBRE assisted the seller, and two of its brokers—Anne Johnson and Bryan Crutcher—will remain on to lease the properties.

2. FINANCING – MB Real Estate lands $207.5 million loan for office portfolio.

Capital One originated a four-year note for 14 properties in eight markets, according to Yardi Matrix data. Included in the portfolio is One SouthPark Center, a 144,185-square-foot office property in Charlotte. Located on a 4-acre parcel at 6060 Piedmont Row Drive, the 10-story building was completed in 1973. MB had acquired the property for $38.3 million from Continental Capital Partners in August 2019.

3. DEVELOPMENT – Gaston County breaks ground on 330-acre industrial campus.

County officials began site work at Apple Creek Corporate Center, a public-private industrial project, according to Charlotte Business Journal. Over the past six years the county acquired 15 parcels for a total of $29 million. Two unidentified companies will invest in properties at Apple Creek: A European firm will spend $30 million on a manufacturing facility dubbed “Project Raven” and a second company will invest $3 million in a 30,000-square-foot distribution center named “Project DUO”.

4. DEAL – Two grocery-anchored assets sell in $90 million portfolio deal.

Armada Hoffler Properties completed the sale of a seven-asset retail portfolio encompassing 623,766 square feet in North Carolina, Virginia and Maryland to Slate Retail REIT. Two of the properties are in Charlotte: the 57,710-square-foot Alexander Pointe and the 80,467-square-foot Renaissance Square. Located at 850 Jake Alexander Blvd. W. and 11124 Renaissance Drive, both assets are anchored by Harris Teeter. At the time of closing, the full portfolio was 92 percent leased.  

5. LEASING – JLL leases two floors in 18-story office tower.

The brokerage company signed a 41,000-square-foot lease in Lincoln Harris’ Legacy Union, a 370,240-square-foot office project. Located at 650 S. Tryon St., the building broke ground in late 2018 and is slated for delivery by year-end. At the start of 2021, JLL will consolidate its operations on the fifth and sixth floors, bringing 150 employees under the same roof.

6. DEVELOPMENT – ATCO Properties JV delivers creative office project.

The company partnered with Shorenstein Properties and finalized the development of The Gama Goat Building, a Class A, 140,000-square-foot office asset. Located at 1701 N. Graham St., the property is in Camp North End, a 1 million-square-foot adaptive reuse project. Cushman & Wakefield’s Jessica Brown, David Dorsch, Kris Westmoreland and Grant Keyes are the exclusive leasing agents.