CHARLOTTE—Adler Kawa Real Estate Advisors (AKREA), a real estate investment firm created through a joint venture between Adler Group and Kawa Capital Management, just snapped up Carmel Executive Park. The asset is 95% leased.
AKREA purchased the six-building property from Pizzagalli Properties, which originally developed the business park in 1990. Patrick Gildea, vice president, and Ryan Clutter, executive vice president with CBRE, marketed the property on behalf of the seller.
“Carmel Executive Park offers strong in-place cash flow, a stable and diverse tenant roster, and a market with favorable demographics, making this a model investment for Adler Kawa Real Estate Fund II,” says Matthew L. Adler, president and CEO of AKREA. “Our plan is to focus on renewing the property’s existing tenant base while investing in capital improvements.”
The 225,000-square foot business park is home to more than 100 tenants, including Liberty Mutual Insurance, JP Morgan Chase Bank, Crump Life Insurance Services, Bank of North Carolina, and Hanson Brick East. Only about 10,000 square feet of space is available at the park, which is located at the intersection of Carmel and Pineville-Matthews Roads in Charlotte.
“With 30% population growth over the past decade and a resilient economy that has weathered the economic storm, Charlotte is indicative of the types of markets in which we plan to deploy capital for the acquisition of multi-tenant, management-intensive properties,” says Adler. The purchase of Carmel Executive Park marks the initial acquisition by the Adler Kawa Real Estate Fund II.
The Adler Kawa Real Estate Fund II’s emphasis is on multi-tenant office and industrial assets in the southern and eastern U.S. The Fund has raised about $50 million and is authorized to raise up to $100 million. The purchase of Carmel Executive Park follows the recent transactions in the AKREA management team’s previous fund, the Adler Real Estate Fund, which completed deals valued at more than $460 million and acquired assets totaling more than 4.5 million square feet.
Financial terms of the transaction were not disclosed. Debt financing for the acquisition was secured by Charles J. Foschini, vice chairman; Christopher A. Apone, first vice president; and Compie Newman, senior vice president in CBRE‘s Debt & Equity Finance Group. Local leasing and marketing will be managed by Brad Grow with Colliers International. The park’s existing team of on-site management professionals will remain in-place.