GCP expands into Charlotte, NC

GCP expands into Charlotte, NC

Birmingham, AL based Graham Commercial Properties (GCP), a real estate holding fund and management company formed in late 2013, is pleased to announce the company’s first investment in Charlotte, NC. The company is reinvesting proceeds from the disposition of one of its Alabama properties. The transactions allow GCP to add further geographic diversification to its portfolio of industrial properties located in Alabama and Florida.

The Alabama disposition represents the sale of a single 247,000 square foot Class A distribution center located at Shelby Commerce Park in the Birmingham market. Originally developed in 2006 by Graham & Company, GCP’s sister company, the entire warehouse was recently leased to Plantation Patterns LLC on an eleven-year triple-net lease. Alabama based Plantation Patterns LLC, one of the Southeast’s leading manufacturers of cushions, pillows, umbrellas and outdoor décor, utilizes the facility as a distribution center and e-commerce fulfillment center.

“Execution of the Plantation Patterns lease and ultimate sale of this property is a sign of the strengthening market. Occupancy of industrial real estate is tightening up in the Birmingham market and attracting investors,” said Brad Sandidge, GCP’s CFO.

The Birmingham warehouse shown below sold in July for $11 million, and Graham & Company and DTZ handled the transaction for GCP. GCP’s management group will continue to handle property management of Shelby Commerce Park, including the facility that sold.

Shelby Commerce Park Three in Birmingham, Alabama

On the heels of the Alabama deal, GCP redeployed the proceeds into a $12.5 million Class A asset in Charlotte. Located at 2100 The Oaks Parkway in Belmont, NC, the 14-acre site contains 125,000 square feet of industrial space situated along interstate I-85 just outside of Charlotte.
Gardner Lee, President of GCP, describes the purchase as follows, “we saw the opportunity to enter the Charlotte industrial market through an investment in a quality property with a solid tenant. The I-85 corridor is one GCP’s tier one targets, and this investment aligns with our core growth strategy.”

“We are encouraged and excited to see new investors finding value in the Charlotte industrial market. We look forward to future opportunities to work with GCP again in their aggressive pursuit of new investment into the market” said Chris Skibinski, SIOR, Principal at Avison Young who represented the seller in the transaction.

The Belmont buildings were constructed in 1999 and remain institutional quality assets due to the precast concrete wall construction, 30’ – 31’ clear ceiling heights, (12) twelve dock doors, and 42,000 square feet of corporate offices. IDG USA LLC (“IDG”) which operates as The Industrial Distribution Group has occupied the facility since its construction in 1999. IDG utilizes the office/warehouse setting as their corporate headquarters and specializes in the distribution of maintenance, repair and operations supplies to industrial customers. GCP currently does not have plans to open a Charlotte office, as the Belmont facility is on an absolute net lease; however, this could change as the company evaluates and pursues more deals in the Carolinas.
As GCP looks for opportunities to grow and geographically expand, the company continues to weigh potential sources of new equity infusion into the portfolio. Once additional equity is secured, GCP leadership will aggressively seek out value-add deals like the Charlotte transaction which will allow GCP to enter new markets and continue providing consistent returns to the portfolio’s ownership group.
About Graham Commercial Properties

GCP is a vertically-integrated commercial real estate company that invests in industrial real estate located in the Southeast. The company’s portfolio currently consists of 4.6 million square feet across 26 industrial properties. Headquartered in Birmingham, Alabama, GCP also offers third-party management services, with nearly 11 million square feet of industrial, office and retail properties under management.

About Avison Young

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its principals. Founded in 1978, the company comprises 1,900 real estate professionals in 67 offices, providing value-added, client-centric investment sales, leasing, advisory, management, financing and mortgage placement services to owners and occupiers of office, retail, industrial and multi-family properties.