Whitehall I & II

(Case Study)

Charlotte, NC

Square Footage: 204,900 Acquired: April 2016 Purchase Price: $21,500,000

Whitehall I & II is a two-building, Class A mid-bay industrial and flex project located in the premier master-planned Whitehall development at the intersection of the 77 freeway and 485 beltway less than ten miles south of Uptown Charlotte. In joint venture with Cross Harbor Capital Partners, CIP Real Estate acquired the 204,900 square foot  in April 2016 on an expedited all-cash basis for $21.5 mm from a distressed “out of town” seller facing a pending debt default scenario.

The business plan for Whitehall I & II had several compelling value-added components and challenges, including a pending vacancy of a major tenant in Whitehall I and the near term termination right of another large international tenant in Whitehall II.  CIP Real Estate’s management team successfully “back filled” the significant vacancy ahead of forecast at rental rates above pro forma.  Additionally, the international tenant did not elect to terminate its lease in 2017 and is expected to enter into negotiations in 2018 to extend or possible expand its occupancy in the project.

These value-add elements, plus the opportunity to exit the project in multiple sales, made this a rare industrial purchase in the very strong Charlotte metro region.