Greenville-based RealOp Investments added two additional properties at the end of Q4 to its real estate investment portfolio.
The first is Central Park Business Center, a value-add office/flex opportunity located at 3728 Phillips Highway, near Interstates 10 and 95, in Jacksonville, Florida. RealOp plans to improve and reposition the asset in the market place.
The location offers centralized access throughout the Jacksonville region, said Julian Nexsen, RealOp’s vice president of acquisitions.
The 217,900-square-foot, multi-tenant property consists of three, single-story buildings constructed in 1989. The property was 50 percent leased at the time of closing.
“We are pleased to be closing a transaction with Taurus Investment Holdings and are very optimistic about the near-term growth prospects in Jacksonville. Jacksonville, like the rest of the state, has emerged as a much more dynamic employment market than in past cycles,” Nexsen said. “We recognized the opportunity to acquire a well located asset below replacement cost providing lake views, parking, various layouts, and highway exposure. We will provide the necessary capital improvements, competitive rental rates, and quality property management to lease-up vacant space and renew the existing tenants making Central Park a highly attractive office location for years to come.”
RealOp’s second acquisition is the 163,687-square-foot Arrowpoint II and III portfolio located in Charlotte, North Carolina’s, airport submarket. This is RealOp’s first office acquisition in Charlotte, Nexsen said.
The two four-story properties are adjacent to each other.
“We see an opportunity to fill an underserved need for value driven office space with good parking ratios in suburban Charlotte,” Nexsen said. “Charlotte’s CBD has been on fire, seeing remarkable rental rate growth and setting pricing records, but the suburbs still have a large differential in price-per-square-foot rates and appreciation potential compared to the CBD.”
The properties are close to Charlotte’s Douglas International Airport, the city’s downtown business district, top tier hotels, restaurants, and many of Charlotte’s most desirable residential, commercial and shopping areas. The office portfolio was sold by Accesso Partners LLC.
“Our goal is to acquire value-add assets in growth markets across the Southeast, implementing strategic redevelopment and leasing plans. We feel there is great upside opportunity with each of these buildings,” Nexsen said.
Stream Realty Partners will serve as the leasing team for ArrowPoint II and III. Chip Hunt, RealOp’s Vice President of Leasing and Marketing, said Stream brings a wealth of experience and local expertise in asset repositioning, something the group will focus on at in 2019. The group will be announcing significant capital projects and rebranding for the assets in the first quarter.
“RealOp will be making some major changes to this asset in the coming months and we know Stream will be a key partner in the long-term success of this investment,” Hunt said.