SouthPark is one of the wealthiest and most sought after submarkets of Charlotte, yet in-place rents at the portfolio were below market. Rollover of 36% during the projected hold period created a mark-to-market opportunity on expiring leases.
Our investment strategy centered on completing select upgrades to common areas and amenities, constructing spec suites, and growing market rents, further positioning the buildings to retain competitiveness in the submarket and capitalize on the growing rate environment.
We were able to increase WALT, push rents, and grow NOI during our hold period. Following a fully marketed sales process, the deal was awarded to a Boston-based fund manager at $46.25M, resulting in a successful deal execution that achieved value-add returns.