Patriot Equities Sheds 1.5MSF Charlotte Industrial Complex for $50M
- Dec 13, 2013
A joint venture formed by New York-based LRC Properties LLC and New York Life have completed the purchase of a 1.5 million square-foot multi-tenant industrial complex in Charlotte for an acquisition price of $50,525,000, announced Cushman & Wakefield | Talhimer. The properties, 1800 and 1900 Continental Boulevard were acquired from Patriot Equities, represented by Cushman & Wakefield | Talhimer’s Capital Markets Group. Members of the commercial real estate firm’s North Carolina and Atlanta offices also handled the marketing of the property.
Strategically located at the interchange of I-77 and I-485 in Charlotte’s southwest industrial submarket, the 1.5 million square-foot industrial complex also features 25 acres of additional land, which could hold up to 270,000 square feet of warehouse space with direct I-485 frontage. According to a press release, LRC plans to build out the undeveloped land into big box warehouses.
Patriot Equities purchased the asset in 2007 from Continental Tire, redeveloping and repositioning the industrial hub into a multi-tenant distribution facility with Class A features. LRC will further enhance the property, rebranding and repositioning both 1800 and 1900 Continental Boulevard and add environmentally friendly features.
1900 Continental Boulevard’s four tenants bring the property up to a 98 percent occupancy rate. The asset featured a publicly traded rent roll anchored by Continental Tire. Snyder’s Lance and Snap AV also occupy space in 1900, while the latter leases space in 1800 Continental Boulevard as well. While 1800’s occupancy rate is currently 34 percent, the asset has outstanding leases that will elevate occupancy to 74 percent.
According to Cushman & Wakefield | Talhimer’s latest data Charlotte’s industrial market reflects a steadily growing economy with decreasing vacancies and growing rental rates. Year-over-year vacancies have decreased by 2.3 points to a current 10 percent, while rental rates have grown by 8.4 percent to an average asking rate of $4.11 per square foot. The Southwestern submarket, where the newly traded properties are located has an overall vacancy rate of 5.7 percent and asking rate of $3.98, the lowest within Charlotte. By comparison, Charlotte’s strongest industrial market boasts a rental rate of $4.50 per square foot and a 6.8 percent vacancy. According to Talhimer’s predictions vacancies are expected to decrease with the larger blocks of Class A and B industrial space to go off the market by the end of Q1 2014. Speculative developments are expected to be announced and buyers’ interest in the market to continue.
Click here for further Charlotte market data
Image courtesy of Cushman & Wakefield | Talhimer
Chart courtesy of Cushman & Wakefield | Talhimer