(Save the date: RealShare Industrial 2012 comes to The Bankers Club, Miami, December 5 – 6.)
CHARLOTTE, NC—Vanguard Centre, a professional office park located in the I-77 Corridor submarket of Charlotte, has traded for $34.6 million. Vanguard Centre includes 13 office buildings spanning 531,004 square feet of space.
Patrick Gildea and Ryan Clutter of CBRE’s Investment Properties Group exclusively represented the seller, Intercontinental Real Estate Corporation in Boston. The buyer was an undisclosed opportunity fund out of New York.
“This was the first value-add, institutional-quality office park to be put on the market in a few years in Charlotte,” Gildea tells GlobeSt.com. “Institutional investors have been sitting on the sidelines for years raising money that is generating no return. This was an opportunity for an investor that is new to the market to obtain a critical mass in Charlotte quickly.”
Gildea says investments in gateway markets are becoming increasingly pricey. For that reason, he’s witnessing more interest in strong secondary markets like Charlotte and Raleigh.
The buildings in Vanguard Centre were constructed between 1975 and 1997, utilize 39 acres of land. The property sale included an additional 17 acres for future development. The park is about 50% occupied to the likes of SunGard, Ameresco, General Electric, M/I Homes, and Home Depot.
Gildea says Charlotte has weathered the storm better than most of its peer group. He reports rental rate growth in high quality assets in the strongest submarkets, such as the CBD and SouthPark.
“Slowly but surely, we are seeing vacancy rates tick downward in most submarkets,” Gildea says. “I spent the last two days in tenant interviews for an office park that we are selling in Charlotte, and the common trend in the interviews was that the majority of these companies are growing and will need to increase their space in the next 12-24 months.”