Ferncroft Capital Acquires CBD Office Building in Charlotte, NC
February 2019 – Ferncroft Capital, a Charlotte-based real estate investment company, recently acquired 330 South Tryon, in Charlotte, NC for $29,900,000. The asset includes a 65,444 sf multi-tenant office building and an adjacent 229 space parking deck that spans the block to Church Street. The building tenancy includes the newly formed Charlotte Regional Business Alliance, formerly the Charlotte Chamber.
The property is situated in the heart of the CBD with a prestigious South Tryon Street address amongst new office and hospitality development, as well as amenities such as Romare Bearden Park, professional sports venues and other cultural hubs. As part of its acquisition strategy, Ferncroft seeks infill, and urban office assets throughout the Southeast. This asset was especially appealing given its boutique nature, uptown location, newly renovated tenant suites, High Street retail presence and a parking garage central to demand generators.
The 11,000 sf office floorplans offer a creative, modern and collaborative environment that can accommodate full floor businesses and allow them to brand and create their own identity on their respective floors. Ferncroft aims to position this asset in the market as the premier creative office building on Tryon Street. “There are not many creative space opportunities in Uptown for companies seeking non-corporate space, coupled with the Tryon Street address. We believe we can attract and retain great businesses to lease these spaces over time.” said Hollmeyer, a principal at Ferncroft Capital. The building is 100% occupied.
While the asset will remain as-is, Ferncroft intends to explore possible redevelopment options for portions of the site long term for its highest and best use. “This asset sits in the heart of tremendous activity on the south side of Uptown and has unobstructed views over Romare Bearden Park which gives us optionality for the long term.” commented Hollmeyer.
Ferncroft Capital Acquires Bulk Distribution Facility in Southwest Charlotte
January 2018 - The firm recently acquired a 491,000 square foot bulk distribution facility in Charlotte's desirable Southwest sub-market. The 32-acre site, located at the intersection of interstates 77 and 485, is approximately 6 miles from the Charlotte Airport as well as the city center.
The property was built in 1975 and renovated in 1999. It includes 20- and 30-foot clear heights, desirable door counts (74 dock high, three drive-in), trailer-parking areas, functional office space, above-standard dock treatments and an early suppression, fast-response sprinkler system.
Jeff Thomas, a principal at the firm, commented, "The acquisition represented an opportunity for the company to acquire a large infill industrial asset in the premier industrial sub-market in Charlotte at an attractive basis."
Medalist Capital worked on behalf of the partnership to secure debt for the deal.
Ferncroft Capital Partners with LaSalle to Acquire Restoration Hardware Gallery in Atlanta's Buckhead District
August 2017 - Ferncroft Capital partnered with LaSalle Investment Management to acquire Restoration Hardware’s Gallery at the Estate in Buckhead, a six-story, 64,000 square-foot retail property located on Peachtree Road NW, between Pharr Road and Paces Ferry Road.
This acquisition presented a compelling opportunity to own a high-visibility retail property that is generating impressive sales volumes, on a prominent intersection in the Atlanta market.
Opened in 2014, the Buckhead location is one of the largest Design Gallery concept stores opened by RH, and illustrates the company’s strategy to blend experiential showrooms with online sales. The larger store size allows RH to showcase their full product line and provides flexibility as the company continues to innovate its store configuration and merchandise concepts.
Eastdil Secured worked on behalf of the partnership to secure debt for the deal.
Morrison Shopping Center Signs Tandur Indian Kitchen
August 2017 - Morrison Shopping Center has added a new restaurant to its tenant lineup. Tandur Indian Kitchen offers a higher-end fast-casual experience with more chef-driven options, an elevated dining experience and ambiance, and in how dishes are plated.
Keeping with tradition, all meats are roasted in a tandur — a clay oven and cooking technique. Naan bread is also baked on the walls of that clay oven, which can reach 900 degrees. Spices are roasted and ground in house to create spice blends.
The restaurant is expected to open to the public in the first quarter of 2018.
Morrison Shopping Center Signs Four New Tenants, Plans Enhancements
July 2017 - Morrison Shopping Center has added four new tenants, Anne Neilson Fine Art Gallery, Mud + AIR, Sabor Latin Street Grill and Yafo Kitchen, to its increasingly eclectic roster of occupants. The center is also undergoing asset improvements aimed at enhancing customer experience.
“The SouthPark market has enjoyed a significant rejuvenation in recent years, and it is quickly becoming the center of activity in Charlotte,” said Susan McGuire, principal and managing director at Foundry Commercial. “The great thing about the growth at Morrison is that it provides residents and workers in this growing market a chance to experience some of the fantastic products that local vendors have to offer, while still providing access to national retail brands. We are excited to continue working with the asset owners to improve its current offerings and to scout for even more exceptional tenants.”
The center will also benefit from adjoining residential expansions with a new 360-unit multifamily project, Aspire SouthPark, slated to open in early 2018, and more apartment projects expected to break ground across Sharon and Colony Roads.
Miller Street Market Renovation Plans Unveiled
October 2016 - Ferncroft Capital recently announced its plan to renovate Miller Street Market in Winston-Salem, NC. The property is located at 55 Miller Street and is anchored by Whole Foods.
The architectural theme for the renovation will integrate classic mill elements from Winston-Salem’s industrial roots with upgrades that will create a new retail shopping experience. The firm plans to include natural exposed wood along the pedestrian sidewalks, painted metal accents, goose neck lighting and a new landscaping plan. Giant timbers will be mounted with industrial sized bolts above the current glass accents on the building. The developer also wants to create a gathering area with outdoor seating featuring two large chalk boards that will feature Whole Foods’ daily specials and community related events.
“Our strategy is to buy well-located centers and make them best-in-class assets. Both retailers and customers appreciate the attention to detail and thoughtfulness of each renovation. We strive to create assets that the community will embrace,” commented John Hollmeyer, Principal at Ferncroft Capital.
Ferncroft Capital Acquires 232-unit Multifamily Complex in SouthPark
April 2016 - The firm recently acquired Quail Valley on Carmel, a 232-unit multifamily complex in Charlotte’s SouthPark submarket for $26,400,000.
The garden style apartments sit on nearly 34 acres on Quail Hollow and Carmel Roads. The complex adjoins Olde Towne Village, a Harris Teeter-anchored shopping center also owned by Ferncroft. John Hollmeyer, a principal at the firm, commented, “Quail Valley is an established suburban infill complex within an affluent and dense neighborhood. These are key attributes to our acquisition strategy across the board.”
Ferncroft Capital Acquires Single Tenant Office Building in SouthPark
January 2016 – Ferncroft Capital recently acquired the Class A office building at 4611 Sharon Road in Charlotte, NC for $4,150,000. The property is home to the Charlotte headquarters of Fidelity Investments, in the heart of the affluent and rapidly growing SouthPark submarket.
Ferncroft Capital Acquires Class A Retail Center in Hilton Head, SC
December 2015 – The Charlotte-based investment firm recently acquired Fresh Market Shoppes in Hilton Head, SC for $19,500,000. The 87,000 square foot shopping center is located on William Hilton Parkway, the island’s primary thoroughfare.
Fresh Market Shoppes is anchored by The Fresh Market, which recently completed a major store renovation, and Bonefish Grill. The property is 91% occupied. “With limited supply for new development and strong demographics in Hilton Head, this asset fits our investment strategy well,” commented John Hollmeyer, a principal at Ferncroft Capital. Ferncroft plans to make a number of improvements to the center and will look to lease the remaining space to local, regional and national tenants, including restaurants. “We believe there is demand to attract more specialty, high-end stores to this center over the next 5 years. We hope to transform this into one of Hilton Head’s premier shopping destinations,” said Hollmeyer.
Foundry Commercial will handle the management and leasing of the property. HFF worked on behalf of Ferncroft to secure debt from Synovus Bank.
Ferncroft Capital Acquires Medical Office Building in Charleston, SC
October 2015 – Ferncroft Capital recently acquired 163 Rutledge Avenue in Charleston, SC for $5,250,000. Located in the heart of the Peninsula (CBD) and within the Peninsula’s Medical District, the 14,000 square foot class A office building is fully leased and anchored by the Medical University of South Carolina.
John Hollmeyer, a principal at Ferncroft Capital, remarked, “The acquisition of 163 Rutledge Avenue highlights our investment approach of pursuing quality infill office assets in high barrier to entry locations with attractive risk adjusted returns. This purchase also satisfied a 1031 exchange for an entity related to Ferncroft.”
Joint Venture Partnership Sells Park Avenue Building in Charlotte's Midtown submarket
October 2015 – Joint venture partners Ferncroft Capital, a Charlotte based real estate investment firm, and PRP, a Washington, D.C. based firm, recently sold the Park Avenue building in Charlotte’s Midtown for $21,700,000.
Tenants of the 92,000 square foot Park Avenue building include Beasley Media Group (formerly CBS Radio), Carraba’s Italian Grill and Aveda Institute.
The partnership purchased the property out of receivership from Wells Fargo in 2011 for $15,000,000. John Hollmeyer, a principal at Ferncroft Capital, commented about the purchase and management of the property, “Ferncroft was fortunate to procure an off-market deal for this quality, infill office building with below market rents. Over the last four years, we were focused on reducing deferred maintenance, and bringing the building back to a Class A institutional quality asset. We were also able to renew over 70% of the existing tenants in the building throughout the hold period. With the property stabilized and aggressive pricing for infill Charlotte product, it was a great time to sell the building.”
Ferncroft Capital Acquires Class A Grocery-Anchored Center in Pawleys Island, SC
October 2015 – Ferncroft Capital has acquired Pawleys Island Plaza for $16,500,000. The shopping center is located along Highway 17, the primary thoroughfare servicing DeBordieu, Pawleys Island and Litchfield Beach.
Pawleys Island Plaza is a 120,000 square foot retail property anchored by Publix, Petco, Tuesday Morning and Dunkin Donuts. The property was recently redeveloped, but a number of smaller shops remain vacant. Ferncroft’s experience with value-add assets drew them to this opportunity. The ability for new tenants to join the Publix and strong junior anchors is a unique opportunity. Ferncroft will seek to lease the remaining space to local, regional and national tenants including an additional junior anchor.
“It’s rare to find a brand new Publix anchored center with these demographics and with a lease up opportunity,” commented John Hollmeyer, a principal at Ferncroft Capital. “Given the timing of the purchase we believe we can add significant value over the next several years."
The Durban Group represented Ferncroft Capital in the transaction. Foundry Commercial will handle the management and leasing of the property. Bank of North Carolina provided the debt.