Charlotte Commercial Real Estate Wrap-Up – March 2020
- Mar 27, 2020
Charlotte’s commercial real estate sector began the month on a strong footing. Two deals crossed the $100 million threshold, and construction activity kept its strong pace, with a notable South End project landing a major financing package from PCCP. However, the second half of the month was notably slower, following the metro’s first confirmed cases of COVID-19. On March 26, Mecklenburg County issued a three-week order for all residents to stay at home. Although the order specifically exempts construction work as a critical trade, it will nonetheless have a chilling effect on the market’s overall activity in the short-term.
1. DEAL – Armada Hoffler to sell $106.5 million retail portfolio.
Slate Retail REIT agreed to buy the Renaissance Square and Alexander Pointe shopping centers, as part of a seven-property portfolio sale. Both assets—the first located at 11040 Renaissance Drive in Kannapolis, the other at 850 Jake Alexander Blvd. W. in Salisbury—are anchored by Harris Teeter grocery stores. The full transaction includes 630,000 square feet in Maryland, North Carolina and Virginia and will close in the second quarter.
2. PEOPLE – Extended Stay America names chief investment officer.
Judi Bikulege brings more than 28 years of experience to the newly created role, where she will oversee new construction and renovation activity and manage ongoing capital investments. Prior to her promotion, she served as the hospitality firm’s senior managing director of real estate. Bikulege also previously held senior positions with a wide variety of other hospitality firms including Gencom, Morgans Hotel Group and Patriot American.
3. DEAL – Dalfen Industrial acquires warehouse near Charlotte International Airport.
CLT Freight Carrier sold its 58,160-square-foot facility for $5.3 million, according to public records. The seller signed a three-year leaseback deal which allows for one three-year extension option. Built in 2001, the building is located on 6 acres at 4325 Beam Road, 5 miles from the intersection of interstates 77 and 485. The purchase brings Dalfen’s North Carolina portfolio to approximately 2.5 million square feet.
4. DEAL – South Street Partners pays $102 million for three Class A office assets.
Brookfield provided the buyer with a four-year, floating-rate $79.4 million acquisition loan. America’s Capital Partners sold Coliseum III, V and VI which total 511,344 square feet. Completed between 1996 and 1998, the six-story buildings are located at 2550 W. Tyvola Road and 2810 and 2815 Coliseum Centre Drive. JLL Capital Markets assisted the seller, procured the buyer and arranged the financing.
5. SUSTAINABILITY – Albemarle Corp. awarded LEED Gold certification for headquarters expansion.
The 141,000-square-foot addition, completed in January 2019 at the northern structure within Lincoln Harris’ Capitol Towers at 4250 Congress St., received the certification due to its wide range of sustainable features. The project, spread across six of the building’s 10 stories, targeted improvements in water efficiency, energy use and indoor environmental quality, among others.
6. DEVELOPMENT – South End office project gets $95.6 million construction loan.
PCCP provided the senior note for Portman Holdings’ 2151 Hawkins, according to Charlotte Business Journal. The 280,000-square-foot, 16-story office development broke ground earlier in the year and is slated to deliver in September 2021. While the project has not yet secured any office tenants, Sycamore Brewing will move from its location next door to anchor the building’s retail component.