JLL completes $36M sale of Carmel Park I and II in Charlotte

CHARLOTTE, November 6, 2019 – JLL announced today that it has completed the sale of Carmel Park I & II, two recently renovated, Class A office assets totaling 173,068 square feet in Charlotte, North Carolina, for $36 million.

JLL represented the seller, CapRidge Partners, LLC, and procured the buyer, OA Development.

Carmel Park I & II is located at 11111 and 11121 Carmel Commons Boulevard in flourishing South Charlotte, one of Charlotte’s fastest growing office submarkets. This location is proximate to Uptown, SouthPark and the Charlotte Douglas International Airport, as well as Ballantyne, one of Charlotte’s premier mixed-use lifestyle districts. Additionally, the properties have exceptional regional connectivity with convenient access to Interstates 485 and 77. After CapRidge completed significant capital improvements, the four-story properties now feature Class A interior finishes throughout, a state-of-the-art conference room and a scenic outdoor courtyard for tenants. Carmel Park I & II are 92.9% leased to a diverse tenant roster representing the healthcare, real estate, financial services, engineering, insurance and technology industries, among others.

The JLL Capital Markets team representing the seller included Senior Managing Director Ryan Clutter, Senior Director Chris Lingerfelt, Managing Director Scot Humphrey and Director Zack Drozda.

“Carmel Park I and II garnered significant interest from dozens of prospective investors,” Lingerfelt said. “With office fundamentals and surrounding demographics rapidly strengthening in South Charlotte, these two assets are poised to be strong investments for years to come.” 

“Carmel Park is an excellent example of CapRidge Partners' strategy of acquiring well-located office assets that benefit from property upgrades, proactive management and tenant-focused customer service,” said Kevin Black, Chief Operating Officer at CapRidge. “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 commons areas. 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.”

“Even with more than two million square feet of office space completed in 2019, Charlotte continues to see declining vacancy rates as the market is flourishing,” Clutter added. “As mentioned in JLL’s Q3 Review on Charlotte, tenant demand will continue to expand through local organic growth and migration and expansion from firms relocating to the Charlotte area.”

JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment advisory, debt placement, equity placement or a recapitalization. The firm has more than 3,700 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc. 

Deal secured by Holliday Fenoglio Fowler LP (“HFF”) prior to being acquired by JLL on July 1, 2019. Co-brokerage services provided by Jones Lang LaSalle Americas, Inc. 

CapRidge Partners is a fully integrated investment management and operating company focused on value-add office properties in nine select U.S. markets, including Charlotte. Their strategy is to acquire well-located assets, below replacement cost, that offer opportunities to add value by providing proactive management, delivering enhanced customer service and wellness amenities, leasing to stabilized occupancies, marking-to-market expiring leases, and completing capital projects. Since 2012, CapRidge has acquired 41 office buildings.  

OA Development brings a unique way of looking at the marketplace that delivers consistent returns to investors. That is why OA Development’s clients have trusted the firm’s insights since 1993. OA Development’s long-time leadership possesses the experience, expertise, and orientation to protect and grow investors’ assets in the rapidly changing commercial real estate market. Such foresight has helped the firm remain ahead of the market at each turn and produce an enviable track record. oadevelopment.com