Why Deep Pockets Want SouthPark Office Assets
Boston-based AEW Capital Management, which manages nearly $58B in assets worldwide—much of that real estate—snapped up Carnegie VII & Ten in the SouthPark submarket for a bit more than $40M.
Institutional buyers of AEW's caliber are making significant investments in the Charlotte market, CBRE's Patrick Gildea tells us—when they can, because not that many core Class-A properties have come on the market recently, especially in SouthPark. "The sale is evidence of strong demand from high-quality capital sources," he says.
Community Investments Foundation, a supporting organization of Foundation For The Carolinas, sold Carnegie VII & Ten, with Patrick and colleagues Will Yowell and Jay O'Meara repping the seller. The properties are at 5955 and 5605 Carnegie Blvd.
With its strong fundamentals, SouthPark has been attractive to institutional investors for a number of years, especially as Charlotte has gotten more national and international notice among investors. Rental rates in the area have increased 12.8% in the last 12 months, and absorption there represents almost a quarter of the entire Charlotte market in the last 12 months, according to CBRE data.
Anchor tenants at Carnegie VII & Ten include Citizens Bank, Enpro Industries and Humana Insurance.