Alabama firm acquires Charlotte industrial property for $22M

Alabama firm acquires Charlotte industrial property for $22M

An industrial building in north Charlotte has a new owner following the closing of a $22 million off-market transaction.

GCP, based in Birmingham, Ala., acquired 10000 Twin Lakes Parkway, a 464,974-square-foot industrial building that had been sitting vacant before The Silverman Group out of Short Hills, N.J., purchased it for $9.6 million in 2012.

The bulk distribution warehouse is currently 100% leased to Schleich North America, a German toy manufacturer, and Ingersoll Rand (NYSE: IR), an industrial supply company based in Ireland. The 24-acre property is at the intersection of Twin Lakes Parkway and Vance Davis Drive, near interstates 77 and 485.

GCP, which typically invests in midsize distribution centers in the Southeast, now has nearly 600,000 square feet of real estate in the Charlotte region. It acquired the Vallen headquarters and distribution center in Belmont in 2015.

Taylor Graham, director of acquisitions and leasing at GCP, said in a statement that 10000 Twin Lakes Parkway building can serve as a last-mile distribution location or for tenants that distribute regionally and nationally.

GCP expects to close on another property in the Charlotte area before the end of the year, according to Graham. The firm secured a $200 million line of credit with Wells Fargo earlier this summer to be used for acquisitions.

According to quarter two research from Avison Young, the north submarket — which 10000 Twin Lakes Parkway is within — had a vacancy rate of 4.4%, making it a moderately tight submarket compared to the overall constrained industrial market in the Charlotte region. The north submarket has witnessed 551,406 square feet of absorption thus far in 2017.

The tightest industrial submarkets in the Charlotte metro are the east and northeast submarkets, with 0.4% and 0.6% vacancy, respectively. Average vacancy market-wide is 4.3%, with 8 million square feet of existing space available and about 3.9 million square feet underway.

View original article from bizjournals.com here.