Two experts from commercial real estate firm Cassidy Turley say the ongoing negotiations to avoid the "fiscal cliff" are weighing on Charlotte's commercial real estate market.
U.S. lawmakers are trying to work out a compromise to avoid to so-called fiscal cliff, a term used to describe the automatic spending cuts and tax increases scheduled to take effect unless lawmakers reach a budget deal.
Sarah Godwin, a senior analyst in the firm's uptown office, said sales of commercial properties could be delayed until 2013 as buyers and sellers wait to see how their taxes could be impacted.
Uptown has seen a record year in terms of dollars for sales of uptown office buildings. Some more closings of major properties in or near uptown are pending, say brokers involved in the deals.
But "in the rush to the finish line by the end of 2012, deals that are held up for whatever reasons will likely have buyers and sellers that hold tight until Congress brings clarity to its fiscal cliff decisions," Godwin says. "This could delay some closings indefinitely and hamper local and national investment sales activity in the first half of 2013."
Also likely delayed - industrial relocations and expansions, she says. That's because manufacturing firms, particularly those that do business internationally, are especially sensitive to tax rates.
In general, companies and investors have been postponing decisions recently as they watch various events unfold -- such as the U.S. Presidential election or the European economic crisis. The fiscal cliff is just one more issue that will postpone decisions, says Steve Gassaway, Cassidy Turley's regional managing principal.
Friday, December 21, 2012
Two experts from commercial real estate firm Cassidy Turley say the ongoing negotiations to avoid the "fiscal cliff" are weighing on Charlotte's commercial real estate market.
Thursday, December 20, 2012
Monday, December 17, 2012
The southeast chapter of the Design-Build Institute of America has awarded Charlotte-based A M King Construction the Best Project Renovation/Rehabilitation/Restoration award for its work on the ALDI Corporate office building expansion in Batavia, Illinois.
Winning projects must show early collaboration, be completed on time and on budget with no litigation, and demonstrate "total integrated project delivery and finding unique solutions to challenges during the project," the institute says.
"We are proud of both the process of designing and building the ALDI Corporate office building, and the product we achieved," A M King Construction partner Brian King said in a release.
ALDI, Inc., called on A M King Construction to add a 95,000-square-foot, class-A office building to its U.S. Corporate Headquarters Campus, and provide renovations throughout its existing buildings. The project involved incorporating the new office building into a crowded campus, which included multiple existing adjacent office buildings. A M King also added 58,000 square feet of parking, relocated roadway and site structures, and provided numerous site improvements.
“We were up against several challenges with this project, including multiple labor strikes and a harsh Chicago-area winter,” A M King Construction’s Operations Director Dan Crist said. “We were constantly revising schedules and plans to overcome these obstacles. Not only did we achieve a level of quality well above traditional construction projects, we did this on time and even realized cost savings for our client.”
Founded in 2004, A M King Construction is a full service design-build and construction services company serving the food manufacturing, food distribution and clean manufacturing industries. The company has won numerous industry awards for projects it has completed across the United States. A M King has designed and built more than seven million square feet of industrial, manufacturing and office space in the past seven years.
Friday, December 14, 2012
Selwyn Property Group is planning to build a four-story boutique apartment complex near the corner of Park and Woodlawn roads, the Observer has learned.
Selwyn Property Group closed on the Park Road land about two weeks ago and plans to build Park at Drexel, which will include 42 residential units, 4,500 square feet of commercial space and 58 surface parking spots.
Developers are betting that its location -- near popular restaurant row on Montford Drive and across the street from Park Road Shopping Center -- will attract younger professionals who like to walk to their shopping and entertainment.
The land had been rezoned for luxury condominiums before the recession. But plans fell through.
Park at Drexel will offer 15 lofts from 450 square feet to 650 square feet, about two dozen one- and two-bedroom units, and one three-bedroom unit with 1,700 square feet. Amenities will include an outdoor grilling area and cyber cafe.
Projected monthly rents are less than $1,000 for the one-bedroom units and under $1,500 for the two-bedroom units.
Thursday, December 13, 2012
The group paid $5.25 million for the 43,000 square-foot office building on 2.4 acres.
The three-story building was built in two phases, one in 1960 and one in 1963, and sits adjacent to the Dowd YMCA. The YMCA is the anchor tenant of the property, which had 25 tenants and was 95 percent occupied at the time of the sale, according to a press release.
SYNCO and its investing properties bought the property in 1982 for $1.3 million. Beacon plans to continue to lease and manage the property and serve existing and new tenants, the release says.
Activity has increased along East Morehead Street. The Duke Endowment, for example, is building its new headquarters on the street.
Tim Hose, President/CEO of SYNCO Properties, Inc. handled negotiations for the seller. Mike
Harrell, office principal of Beacon Partners, led the Beacon buyer team.
Construction is set to begin on new, speculative industrial space in Concord.
A joint venture between The Nolim Group, CM Black Construction Co. and CESI Land Development Services announced Thursday that it is moving forward with plans to build a 88,527 square-foot Class A speculative industrial building at 4541 Enterprise Dr. in the International Business Park in Concord.
The building, which developers say fills a void for manufacturing and warehouse space, is expected to be finished in May.
“In today’s economy, very few developers are constructing speculative buildings, making inventory of available manufacturing and industrial space scarce throughout Cabarrus County and the region,” stated Anne Johnson with CBRE, who is marketing the building on behalf of the ownership. “We are excited to be completing this project and believe that 4541 Enterprise Dr. will be appealing to a wide variety of businesses looking to relocate to the International Business Park, helping create needed jobs in the area.”
The International Business Park is a 500-acre park located 20 miles from downtown Charlotte and along the I-85 corridor. The park is home to roughly 30 companies, including five international firms.
Fewer U.S. homes faced foreclosure filings in November compared to the previous month and the same time last year, according to the U.S. Foreclosure Market Report.
Annual foreclosure filings rose sharply in the Carolinas, however.
South Carolina posted the fifth-highest foreclosure activity in the country, the data shows.
One out of every 728 U.S. housing units had a foreclosure filing in November, down 3 percent from October and a 19 percent drop from November 2011 - the 26th consecutive month showing an annual decrease in foreclosure activity, according to the report, released Thursday by analytics firm RealtyTrac.
In North Carolina, one in 1,254 homes faced foreclosure activity - up 27 percent compared to November 2011 and down less than 1 percent from the previous month.
In South Carolina, one in 455 homes faced foreclosure activity, an increase of 17 percent for the year and up 32 percent from the previous month.
Foreclosure filings include default notices, scheduled auctions and bank repossessions.
RealtyTrac said that while the U.S. housing industry is past the worst of the foreclosure crisis, "...foreclosures
are continuing to hobble the U.S. housing market as lenders finally seize properties that started the process a year or two ago — and much longer in some cases," said vice president Daren Blomquist.
"We’re likely not completely out of the woods when it comes to foreclosure starts, either, as lenders are still adjusting to new foreclosure ground rules set forth in the National Mortgage Settlement along with various state laws and court rulings,” Blomquist said.
The national decrease in foreclosure activity was driven largely by big year-over-year drops in California, Georgia, Michigan, Texas and Arizona. Foreclosure activity meanwhile rose in 23 states and the District of Columbia.
South Carolina was one of nine states posting a 12-month highs in November for foreclosure activity.
Lenders completed the foreclosure process on more than 59,000 U.S. homes in November, up 11 percent from the previous month and up 5 percent from November last year. This is the first annual increase in bank repossessions since October 2010, when the practice of robo-signing foreclosure documents came to light and sparked a moratorium on foreclosures, slowing activity for months.
To view the report, go to http://www.realtytrac.com/content/foreclosure-market-report/november-2012-foreclosure-activity-report-7514
Wednesday, December 12, 2012
Goldberg Companies from Cleveland, Ohio has purchased 16 acres on Old Lancaster Highway and Highway 521 from the Yager family for $3.1 million. The property was rezoned earlier this year for 248 upscale apartments.
Charlotte's Ziegler & Co. represented the seller.
Tuesday, December 11, 2012
Former Charlotte mayoral candidate Scott Stone has started a new engineering firm.
Stone is managing principal at American Engineering, a firm that will do civil engineering, land planning, landscape architecture, environmental engineering and project and construction management.
The firm, which is operating temporarily out of an office at Ballantyne Corporate Park, is looking for a more permanent home for its five employees. Stone, who started the firm with Barry Fay, said he anticipates the firm could have 10 employees by the middle of next year.
Stone was defeated by Charlotte Mayor Anthony Foxx in the 2011 elections. Stone has worked for engineering firm Merrick & Co. and Arcadis.
He acknowledged that commercial real estate market remains soft.
"I think everyone is hoping that January or February is when deals start kicking around and come to life again," he said.
Stone said he has never launched a separate firm before, and that the new venture "is going to be exciting."
"Sometimes people think there's safety in bigger firms," he said. "In today's business, I'd rather be in charge of my own destiny."
Monday, December 10, 2012
The U.S commercial real estate industry is showing small signs of improvement, according to a report released Monday by an industry trade group.
Commercial property values nationwide remain flat, and the volume of deals has decreased, according to CCIM Institute, an industry trade group. Sales of hotel properties fell 25 percent during the past year, for example. Office and retail projects fell roughly 15 percent and 10 percent, respectively. And sales of apartment complexes fell about five percent from the previous quarter.
"Get used to it, as this is the 'new normal' for the economy and we should expect this investment environment for the foreseeable future," said Kenneth Riggs, Jr., the group's chief real estate economist. "The low-hanging fruit has been picked."
On the positive side, investment conditions have improved modestly across all property types compared to last year, the report says.
Slow economic growth, high U.S. joblessness and anticipated federal tax increases weigh are dragging down sales.
The report, based on a third-quarter survey of CCIM members, found a silver lining: Commercial real estate remains a reasonable and sturdy investment choice for investors seeking realistic returns and minimal volatility, CCIM members reported.
"There are plenty of investors seeking to avoid the volatility of the stock market, and who require higher yields than those offered by bonds and cash investments," Riggs said.
Charlotte-area home sales rose 35 percent in November compared to the previous year, leading the local Realtor association to describe the jump as "robust." The increase is particularly noteworthy given the housing market is in a traditionally low-point in the sales cycle.
Friday, December 7, 2012
Apartment giant Camden has applied for a rezoning to let it redevelop an existing complex in south Charlotte, according to paperwork filed with the city of Charlotte.
Camden wants to redevelop Camden Pinehurst at the southwest corner at the intersection of Providence Road and Strawberry Hill Drive. The property, which offers one, two- and three-bedroom units, sits on roughly 40 acres.
An employee in the Camden Pinehurst office told a tenant that, all going smoothly, redevelopment would start around summer 2014. The employee said that as the construction date neared, the company would stop renewing leases as they came due, gradually vacating the property.
Thursday, December 6, 2012
Woodfield Investments' purchase of land in Southpark for a new apartment complex has closed and construction could start soon.
More homebuyers are choosing to buy a home while it is in the foreclosure process instead of buying a house that has already been foreclosed on and is owned by the lender, a new report shows.
Foreclosures nationally accounted for 19 percent of all home sales during the third quarter - down from 20 percent in the second quarter but flat when compared to the same time last year, according to data released Thursday by RealtyTrac, a California-based real estate analytics firm.
For the first time in recent years, however, sales of properties in some stage of foreclosure outnumbered sales of foreclosed and bank-owned properties during the third quarter, according to RealtyTrac.
Roughly 98,125 U.S.homes sold while they were in the foreclosure process versus 94,934 foreclosed homes owned by banks.
"...Both lenders and at-risk homeowners are realizing that short sales are often a better alternative than foreclosure," said Daren Blomquist, RealtyTrac vice president. Short sales are those where the sales price is below the outstanding mortgage.
The average sales price of a home in the foreclosure process was $191,025, down 5 percent from last year and nearly one-third less than the average sales price of a non-foreclosed home.
Foreclosed homes owned by banks sold for an average $162,000 during the third quarter, up 7 percent from the same time last year.
Recent reports show the housing market, both nationally and locally, is improving. Foreclosures continue to drag down the recovery but in the Charlotte area are accounting for proportionately fewer sales.
The U.S.: 193,059 foreclosure sales in the third quarter (this includes homes sold while in the foreclosure process and those already taken over by a lender) - down 3 percent from the same time last year. The distressed sales account for nearly 20 percent of all U.S. home sales.
Distressed homes sold for an average $177,430, or a 30 percent discount to the average sales price of a non-distressed home.
North Carolina: 3,235 foreclosure sales in the third quarter - up 40 percent from the same time last year. The distressed sales account for 10 percent of all N.C. sales and reported an average sales price of $134,826, a 32 percent discount to the average sales price of a non-distressed home.
South Carolina: 2,076 foreclosure sales in the third quarter - up 20 percent from the same time last year. The distressed sales account for 14 percent of all sales and had an average sales price of $131,259, a 30 percent discount to the average sales price of a non-distressed home.
To see the report go to www.realtytrac.com/content/foreclosure-market-report/q3-2012-foreclosure-sales-and-short-sales-market-report-7499
Wednesday, December 5, 2012
LPA Rhett, LLC, a partnership between Charlotte's Lat Purser & Associates, Inc. and Ray Jones, will build a new 150-unit apartment complex in Greenville, S.C., the companies announced Wednesday.
Groundbreaking for the project, which will be at the corner of Rhett and Wardlaw streets, is slated for February. The first units are expected to be finished in May 2014.
The Rhett St. Apartments will feature five unit types ranging from 550-square-foot studios to 1,017-square-foot two-bedroom apartments.
The complex will be smoke-free and dog friendly and offer a club house with flat-screen televisions, pool table, work-out facility and rentable storage units. The grounds will have a courtyard, saltwater swimming pool, gas grills, shuffle-board court and dog park.
The Charlotte office of Adolfson & Peterson Construction will build the project. Financing for the project is being provided by Bank of America Corp. Additional funding is being provided through private equity sources that includes Kaufman Realty Group and Intermark Management, which will also be providing the leasing and property management.
Developers have been flocking to build apartment complexes as more people are expected to rent in upcoming years. Younger people are more likely to rent, either afraid of or unwilling to enter an unpredictable housing market, studies suggest. Or they may have trouble getting mortgages.
Founded in 1961, Lat Purser has focused on multifamily projects for more than 50 years. Lat Purser also has focused on infill projects and creating walkable communities.
Ray Jones is a developer who has built more than 20,000 rental and for sale homes in the Carolinas, Southeast and East Coast.
Crescent Resources has hired John Classe Jr., a real estate industry veteran with almost three decades of experience, to lead its residential projects in Florida, the company said Wednesday.
Tuesday, December 4, 2012
Monday, December 3, 2012
Lenders foreclosed on fewer homes - both nationally and locally - in October compared to the previous year, the latest data from CoreLogic shows.
There were 58,000 completed foreclosures in the U.S. in October, down from 77,000 the previous month and down from 70,000 a year ago.
Nearly 800,000 U.S. homes were foreclosed on during the 12 months ending in October, down 0.3 percent. About 3.2 percent of all homes with a mortgage, or 1.3 million homes, were in what CoreLogic calls the foreclosure inventory.
The foreclosure inventory represents the number and share of mortgaged homes that have been placed into the foreclosure process.
In North Carolina, lenders foreclosed on 28,004 homes during the 12 months ending in October, also a 0.3 percent drop from the previous year. About 2.3 percent of N.C. homes are thought to be in foreclosure, the report shows.
Before the housing market decline that began in 2007, lenders foreclosed on an average 21,000 U.S. homes per month between 2000 and 2006. Since the financial crisis began in September 2008, there have been 3.9 million foreclosures completed across the country.
"A lower foreclosure inventory is a good indicator of improving housing markets," said Anand Nallathambi, president and CEO of CoreLogic.
A memorial service to celebrate Charlotte commercial real estate developer Henry Faison's life will be held 11 a.m. Monday at Christ Episcopal Church, 1412 Providence Rd., Charlotte. A reception will follow in All Saints Hall.