JV Lands $25M Loan for Charlotte Office Campus
- May 23, 2019
A joint venture between Childress Klein and Gottesman Real Estate Partners has received $24.5 million in financing to acquire, renovate and re-lease Rexford Park I and II, two office buildings totaling 136,812 square feet in Charlotte, N.C. Cory Fowler, HFF senior director, led the debt placement team on secured the six-year, floating-rate first-lien loan through Atlantic Union Bank. The joint venture will use part of the money to add interior common spaces and renovate the exterior facade and building systems.
Located at 2100 and 2115 Rexford Road within Charlotte’s SouthPark submarket, the campus is situated in one of the city’s most affluent areas, with prominent neighborhoods of Barclay Downs, Myers Park, Foxcroft and Quail Hollow nearby. The buildings offer direct access to Interstate 77 and are close to numerous restaurants and retail opportunities. Close by are The Specialty Shoppes at SouthPark, SouthPark Mall and the retail and dining offerings of Morrison.
In May, a joint venture of Childress Klein and WHI Real Estate Partners LP sold Galleria 100, an 18-story, 414,000-square-foot office building in The Galleria master-planned, mixed-use development in northwest Atlanta, for $95.1 million.
A growing metro
There’s been a lot of activity in the Charlotte office market this year. In March, Hamilton EQ acquired Gateway Center, a 310,745-square-foot office building, from GEM Realty Capital for $40.5 million. A month earlier, Ferncroft Capital acquired Chamber Building, a 65,444-square-foot office property, from Grubb Properties for $30 million.
The latest Yardi Matrix Charlotte office report revealed that tight market conditions have been fostering a healthy demand for office space in Charlotte. Moreover, a favorable business climate and quality of life, solid population gains and a young workforce have all helped the metro grow rapidly during this economic cycle.
Cushman & Wakefield’s first-quarter 2019 office report for Charlotte noted that 2018 was a strong year for the city, and the first few months of this year are following that upward trend. In the first quarter, Charlotte absorbed 343,000 square feet of office space, on pace to surpass its five-year annual average of 813,000 square feet of net absorption.