Carolina Retail Showing New Life
After years in the doldrums, retail properties in the Carolinas are finally getting some love from investors. Verris Capital managing partner Tom Kolarczyk tells us he's after assets in the region with a compelling value-add story and strong fundamentals.
Recently Charlotte-based Verris found just such a property, Eastchester Shopping Center in High Point, which it acquired from MS Eastchester LLC. "We believe now is the right time to buy due to favorable financing and improving retail fundamentals," Tom says. "We're also encouraged by the growth of High Point University and recent commercial development in the area. High Point is more than just furniture."
The 63k SF property at 274 Eastchester Dr is anchored by Office Depot, and also includes a Dollar Tree, Plato's Closet, Hooters and Dunkin' Donuts. As the area's underlying economic fundamentals continue to improve, including decreasing vacancy rates and rising rents, there's interest from both institutional and private equity investors, explains Avison Young's AJ Belt III. Along with colleague David Duckworth, AJ repped the seller in the deal. Avison Young secured a lease extension with Office Depot in an effort to stabilize the property and widen the investor pool.
