Trinity Partners recently completed Charlotte’s first institutional sales of industrial property since 2009, representing an institutional owner in the sale of Woodland Business Park, Lakeview Business Center and Ridge Creek Business Park. In two separate transactions, a total of 1,371,249 SF of property sold for just over $65 million.

TRANSACTION DETAILS

Woodland Business Park

• 944,339 SF 12-building industrial park (including a nine acre developmental parcel) sold to an affiliate of Dallas-based Crow Holdings
• The park boasts an 85% occupancy rate, strong rent roll and long-term, recognizable tenants (AT&T, Essex Group, Goodyear Tire & Rubber, Sherwin Williams)
• Widely considered one of the most desirable business parks in the region due to its premier location at the I-85 and I-77 junction

Lakeview Business Center & Ridge Creek Business Park

• Both highly functional, Class A bulk distribution centers, Lakeview Business Center (126,910 SF) and Ridge Creek Business Park (300,000 SF) sold to EastGroup Properties, a leading industrial REIT with significant Charlotte presence
• Lakeview Business Center is 100% occupied and is centrally located off of Harris Boulevard, minutes from I-85 and I-77
• Ridge Creek Business Park is also 100% occupied and located in Charlotte’s Southwest submarket, the city’s largest industrial submarket

Trinity Partners’ David Allen (Partner) and Dunn Mileham (Director, Investment Sales) represented the seller in the two transactions. Trinity Partners also handled the leasing and property management for all three properties.

“The process was extremely competitive and very well received by the national investor community,” noted Mr. Allen. “These recent transactions, coupled with stabilizing occupancy rates and several quarters of positive net absorption are key indicators of the strength of Charlotte’s industrial market.”

Trinity Partners expects that these transactions will serve as positive indicators of property value and investor interest in the marketplace, especially given Charlotte’s lack of significant industrial property sales since 2009. The transactions point to the burgeoning interest in second tier markets like Charlotte as the demand for well-leased, properly managed assets expands beyond active primary markets like Chicago, New Jersey, and Southern California.

“Because of the strong pricing and level of investor interest we experienced while managing these transactions, we expect to see other owners follow suit,” said Mr. Mileham. “Primary markets have already seen dramatic price increases, and secondary markets like Charlotte are becoming attractive to investors who need to deploy capital through investments that offer attractive, risk-adjusted returns.”