More than 20 commercial properties worth $575M in Charlotte and Charleston switch hands
A logistics real estate firm is expanding its reach in the Charlotte and Charleston industrial market by 4.3 million square feet.
Indus Realty Trust Inc. announced late Thursday that it had acquired majority ownership of 21 industrial properties owned by Childress Klein, the prominent Charlotte-based commercial real estate developer. The portfolio of properties is valued at $575 million, according to the release.
The terms of the deal and specific properties involved weren’t immediately disclosed.
Those properties are part of Childress Klein’s Carolinas Portfolio. It includes buildings that previously made up one-third of Childress Klein’s overall 13.2 million-square-foot industrial portfolio.
“We are pleased to increase our scale in the Charlotte and Charleston markets and grow our exposure to the fast-growing Southeastern U.S. region,” said Indus President and CEO Michael Gamzon in a news release.
Gamzon added that the properties are all in well-located areas and have been “constructed, maintained and leased to the highest quality standards by Childress Klein.”
Childress Klein will keep a minority ownership of the properties and continue to lease and manage them.
Fred Klein, the firm’s founding partner, said the move is part of a restructuring process that allows the firm to remain owners.
“This is a key step in the evolution of (Childress Klein’s) industrial business,” Klein said in the release. “This strategic partnership with INDUS allows us to leverage the strength of our current operating portfolio, while our existing land inventory gives us the ability to double our existing industrial portfolio.”
Details of the deal
The portfolio has 16 buildings in Charlotte, including several properties in the Arrowhead neighborhood, and five buildings in Charleston.
All of the properties are about 94% leased. It’s unclear who the tenants are.
The buildings, on average, are about 205,000 square feet, while the tenant suites are about 78,000 square feet.
