By Ashley Fahey – Real Estate Editor, Charlotte Business Journal
Nov 11, 2019, 7:40am EST Updated Nov 11, 2019, 4:42pm EST
Two office buildings in south Charlotte have been purchased after its former owner spent millions updating the properties.
OA Development out of Atlanta recently purchased Carmel Park One and Two for about $36.2 million, according to Mecklenburg County real estate records. The two, four-story office properties measure 173,068 square feet in total and were 92.9% leased at the time of the sale.
OA acquired Carmel Park One and Two for nearly $210 per square foot from the seller, Austin, Texas-based CapRidge Partners.
The buildings, at 11111 and 11121 Carmel Commons Blvd., were constructed in the early to mid-1980s. There are 45 current tenants that have staggered lease terms, according to OA Development. The properties recently underwent north of $4 million in renovations, including new interior finishes, a conference room and courtyard for tenants.
Kevin Black, chief operating officer at CapRidge, said in a statement that Carmel Park is an example of the firm’s strategy of acquiring “well-located” office buildings that can benefit from property upgrades, management and customer service.
“We were able to add value to these buildings by giving them the type of hands-on management they deserved, which included delivering enhanced customer service and modernizing the common areas,” Black said. “Upgrades to the lobbies, restrooms, corridors, conference room, elevators, courtyard and tenant spaces improved the marketability of the property and allowed us to capitalize on the asset’s strong demographics.”
CapRidge paid about $11.5 million for the two buildings in 2015.
Steve Berman, founder and partner at OA Development, said in a statement the firm’s “long-standing” presence and success in North Carolina prompted it to seek opportunities in Charlotte. OA says it owns 13 properties across the state, including five buildings at The Park-Huntersville.
Berman cited Charlotte’s population and job growth, highly educated population and quality of life.
“Given these characteristics, combined with the strength of the office market, we anticipate this portfolio will garner a strong return and we remain bullish on North Carolina due to its projected continued growth,” Berman said. “Carmel Park is poised for rental rate growth and long-term success, and we anticipate more deals in the North Carolina market that garner nice returns for our investors.”
Ryan Clutter, Chris Lingerfelt, Scot Humphrey and Zack Drozda at JLL represented the seller in the transaction.