MIAMI—In a move that aims to let each company maximize growth opportunities, CNL Commercial Real Estate is partnering with Crescent Communities. The alliance is dubbed CNL Crescent Commercial Real Estate.
Here’s how the relationship works: CNL will assume responsibility for Crescent’s commercial services business. Crescent will focus on its core strategy of site selection, design, and construction for a portfolio of mixed- and multi-use commercial projects.
Both companies expect clear benefits. The relationship, for example, will deepen CNL’s current services capabilities and broaden its geographic presence, adding 1.5 million square feet of office, industrial, and retail assignments in Orlando, Charlotte, Nashville, and Atlanta. Once finalized, CNL expects the alliance to build on its expansion across the Southeast under the leadership of recently hired president of real estate services Ken Loeber.
“This move positions us to better serve our customers in more of our target markets,” says Loeber. “The synergies we expect to create with this transaction are considerable and will have a meaningful impact on our respective companies, clients, and people moving forward.”
Crescent and CNL share a similar footprint in the Southeast. More and more, Crescent is pursuing community development opportunities including commercial, mixed- and multiple-use projects. The company also has several development projects currently underway, including two mixed-use communities in Charlotte and Gateway, an 80-acre mixed-use community in Altamonte Springs, a suburb of Orlando.
“This strategic alliance will provide us with the opportunity to dedicate our commercial team’s resources to our next wave of commercial development, while entrusting a proven partner and industry leader with the asset management of our current commercial clients and our talented staff who manage those properties,” says Todd Mansfield, president and CEO of Crescent. Crescent owns more than 1,400 acres of entitled commercial land in the Southeast.
Whit Duncan, president of Crescent’s commercial group, expects an uptrend in demand for innovative, thoughtfully-design mixed-and multi-use commercial development: “We’re being very intentional with design to create commercial spaces that are consistent with people’s lives. Public spaces where people can gather and work are a critical element, and we are committed to developing communities that transform landscapes, resonate with tenants and engage the people who live, work and visit there.”
CNL has proven it can manage real estate assets well. The company leases and manages more than 15 million square feet of commercial space.