CBRE Investment ManagementCBRE Strategic Partners US Value 9 has added The Line, a new office asset in Charlotte, North Carolina, to its portfolio.
As part of a joint venture agreement with Portman Holdings, developer of the approximately 314,000 square foot responsive office building, CBRE Investment Management has acquired The Line for an undisclosed amount. According to notes from a request for quotation Portman submitted in late 2021 for another project in North Carolina, the office building cost $155 million to develop.
READ ALSO: The future of the office: is the CRE out of touch?
Located at 2151 Hawkins St. in Charlotte’s up-and-coming South End neighborhood, The Line occupies a 2-acre site that Portman purchased in 2018 in a then-historic $12.7 million deal. $470 per square foot. The 16-storey tower, the result of a partnership with National Real Estate Advisors in the role of owner, delivered in late 2021 with the help of a $95.6 million construction loan through CPCP.
The line includes approximately 290,000 square feet of prime office space, 24,000 square feet of retail offerings, and a host of extras near the light rail. Boasting features ranging from LEED Silver and Fitwel certifications, touchless elements and electric car charging stations, the people-designed The Line is a paradigm of the post-pandemic modern workplace. And as a responsive and productive office building, it anticipates the needs of its users and sets the stage for a more productive workforce. The Line seems well placed to find an audience in the transitioning office world.
What workers want
With the pandemic not quite in the rearview mirror, there are few markets in the United States where tenants are clamoring for office space, but CBRE Investment Management, formerly CBRE Global Investors, isn’t intimidated by the prospect of renting The Line. After all, Value 9, which closed its final close in August 2021 with $2.3 billion in equity commitments for a total buying power of $5.6 billion, is a value-added fund. And The Line has a few advantages on its side to attract potential desktop users.
“We believe The Line will be attractive to tenants because it provides the right user experience and is in the right location,” said Sondra Wenger, head of the Americas business operator division for CBRE Investment Management. commercial real estate director.
“The property offers sophisticated amenities, including many shared spaces, such as a lobby, outdoor plaza and green lawn, the latest technology, and a focus on health and wellness. Additionally, within a three-block radius of The Line, there are 28 restaurants, 13 retailers, six bars, five cafes, two grocery stores, the Rail Trail and nearly 3,000 multi-family units, making the neighborhood the amenity the strongest of the property.
Despite Charlotte’s lackluster office conditions, the vacancy rate was 17.2% in the first quarter of 2022 and the market saw about 360,000 square feet of negative net absorption, according to a CBRE report—the flight to quality is driving strong rental activity in the metro. Additionally, at 10.4%, the South End had one of the lowest vacancy rates of any submarket in Charlotte in the first quarter of 2022, and it is also one of the few submarkets. markets to have recorded a positive net absorption during the first three months of the year.