Development

A multimillion-dollar deal shows why Charlotte’s apartment boom is still going strong

The Centric Gateway apartments at 1010 West Trade sold for $68.75 million.
The Centric Gateway apartments at 1010 West Trade sold for $68.75 million. Courtesy of DRP

Charlotte’s apartment-building boom doesn’t show any signs of slowing down, and a deal announced Friday shows one reason why: Investors are still looking to buy.

The Centric Gateway apartments in uptown Charlotte were sold this month for $68.75 million, developer Dominion Realty Partners said. The buyer is an affiliate of TH Real Estate, the mammoth investment management arm of TIAA, with $114 billion worth of assets under management.

With 297 units, the sale price works out to $231,481 per apartment. Located at 1010 W. Trade St., Centric Gateway opened in December and is about 43 percent leased, Dominion Realty Partners executives said.

“Centric has been very well received by the market since opening, and is well-positioned for long-term success,” said partner Beau McIntosh, who manages the developer’s Charlotte projects.

There are about 27,000 apartments planned or under construction in the Charlotte region. A study last month warned that Charlotte is one of the most potentially “oversupplied” apartment markets in the nation, with forecasts for new supply expected to outpace demand, at least for the next few years.

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But with massive investment managers like TH Real Estate still ready and eager to pay top dollar for luxury apartments in Charlotte, developers who want to sell are able to realize a quick return on new buildings.

Dominion Realty Partners is building more apartments in Charlotte, including 318 units near Topgolf in Steele Creek and a hybrid 28-story office/apartment tower at 401 S. Graham St. breaking ground later this year.

HFF brokers Justin Good, Allan Lynch and Jeff Glen represented Dominion Realty Partners in the Centric sale.

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