Property Type: Retail
Status: In Contract
Address: 1001 East W.T. Harris Blvd.
Charlotte, NC 28213
|CAP Rate: 8.43%|
Square Feet: 40,098
Tenancy Type: Mixed
Lease Type: NNN
The Cooper Commercial Investment Group has been exclusively retained by ownership to sell the 100% fee simple interest in the 40,061 S.F., Charlotte Town Business Center located in the University neighborhood of Charlotte, North Carolina. The property is being offered for $6,900,000, representing an attractive 8.43% CAP and high 12.51% projected year-1 cash-on cash return.
The current tenant roster offers below market rental rates creating significant upside potential as well as an “in demand” location offering some of the most attractive rental opportunities in the immediate vicinity surrounding the university. All but one of the tenants are on Triple Net (NNN) lease structures and over 70% of the center’s leases include rental increases during the current term creating future upside for an investor. With this property’s position less than 1-mile from the University of North Carolina at Charlotte, an investor has the opportunity to acquire a 100% occupied asset centered in a growing residential community with great population density and demand for the tenants and services in the business center. Between 2004 and 2014, Charlotte was ranked as the country's fastest growing metro area, with 888,000 new residents.
The center is home to a diverse mix of national, regional and local tenants. Anchor tenants Monterrey Mexican Restaurant and Kabuto Japanese Steak House and Sushi Bar have been in place since 1990 and 2000 respectively and have shown their commitment to the center and market by renewing their lease for many terms. Additionally, the center is home to a number of new tenants creating long-term stability to the rent roll. In fact, over the last 6 months, 8 new leases have been executed at the center proving high demand for this market. With the fast growth of the area and tremendous growth of the University of North Carolina at Charlotte, the development of apartments in the immediate vicinity is growing very rapidly. Population and household growth have both exceeded 20% growth rates since 2010 and the growth is expected to continue well into the future. Charlotte Town Business Center is positioned adjacent to Heather Ridge Apartments (304 apartment unit complex), Piedmont at Ivy Meadow and directly across from Magnolia Terrace Apartments and Colonial Village at Chancellor Park. The Charlotte Business Journal states “The University City area has seen a host of development and redevelopment in recent years, and developers see plenty more growth in the offing.”
The center has welcoming curb appeal and has recently undergone significant parking lot major repairs and landscaping upgrades/alterations. Positioned between I-85, which runs from the South Carolina border to the Virginia border, and the University of North Carolina at Charlotte with many complimentary surrounding retailers, the area is positioned for high success. Additionally, the center benefits from being positioned directly south of Town Center Plaza with a shared driveway. The retail center anchors Harris Teeter, Dunkin Donuts, Lifetime Fitness and Rite Aid. The center is also less than 2-miles to IKEA, Walmart Supercenter and many more national retailers.
The densely populated University City neighborhood offers an abundance of rooftops with nearly 77,000 people within 3-miles plus the additional student population of 29,000 not included in Census Demographics. The center is positioned near the corner of East W.T. Harris Blvd. and University City Blvd. with extremely high traffic counts at the intersection of 104,000+ VPD. Along East W.T. Harris Blvd., the center entertains traffic counts of 50,000 VPD. The attributes of the center are endless, but being positioned between Downtown Charlotte (10 miles) and the University of North Carolina at Charlotte, the diverse mix of uses and services and staggered lease terms; the asset is well insulated for possible shifts in consumer retail demands and trends.
Full Offering Memorandum