CHARLOTTE, NC – OA Development, an Atlanta-based commercial real estate firm, announces the sale of a five-building, Class A, mid-rise office portfolio located in The Park Huntersville, one of Charlotte’s most notable and earliest master-planned, mixed-use communities. The firm sold theportfolio to Healthcare Trust of America, Inc. (NYSE: HTA), an Arizona-based healthcare REIT, for $81.5 million in a transaction that was finalized December 5.
“The timing just worked for this transaction,” explains Brian Granath, partner, OA Development. “Our original pro forma had us holding this asset for several more years, but we reached an inflection point in the leasing cycle where we thought it was time to test the market. Healthcare Trust saw the value of the asset given its healthy fundamentals including its location within The Park and the North Charlotte submarket.” OA Development originally purchased The Park in 2017 for $62.5 million.
“The Park Huntersville is located directly adjacent to Novant Hospital, which made this asset attractive to Healthcare Trust of America,” continues Granath. The portfolio is currently 90.4% occupied by investment-grade tenants including Ensemble Health Partners, Black & Decker (NYSE: SWK) and Covia Holdings Corp. (NYSE: CVIA). Originally developed in 1990 and up to 2001, the nearly 400,000-square foot office portfolio sits on 33 acres adjacent to Interstate 77 in a highly coveted commercial node that also includes a diverse blend of medical, multi-family, hospitality and retail development totaling more than 2.6 million sq. ft. of commercial space.
The Park Huntersville office portfolio includes a four-story, 123,000-square foot building; two three-story buildings at 101,500 sq.ft. and 45,000 sq. ft.; and two two-story buildings at 68,000 sq. ft. and 59,000 sq. ft.
“JLL’s Ryan Clutter secured the sale of an asset that has immediate upside potential with in-place rents 12.9% below market rents, giving the buyer an opportunity to capitalize on strong leasing velocity in one of the nation’s fastest growing metropolitan areas,” adds Granath.
The Charlotte metropolitan area is comprised of ten counties across portions of both North and South Carolina and is home to more than 2.5 million residents representing a population that has increased by 15.9% since the 2010 census. Recognized as a global hub for banking, energy, healthcare, and transportation, Charlotte is home to seven Fortune 500 and 14 Fortune 1,000 companies.
OA’s Holistic Investment Approach
“This particular transaction happened to meet the investment pro forma several years early and provide exceptional returns to investors. That said, we encourage a diversified approach to investing,” explains Granath. With no guarantees in real estate investment, OA advises its investors to place capital across multiple assets in its portfolio rather than cherry-picking the most lucrative opportunity.
Following the sale of The Park Huntersville, OA’s current portfolio includes 13 properties totaling 2.1 million sq. ft. of office space that stretches predominantly across the Southeast. The firm is actively seeking opportunistic commercial property to expand its portfolio.
About OA Development
Founded in 1993, OA Development is a privately-held, integrated commercial real estate firm that invests in and manages office assets throughout the Southeast that total 2.1 million sq. ft. The company’s expert team curates sound investments, operates with transparency, sustains loyal partnerships and captures consistent value and has raised more than $164 million in capital/equity to acquire opportunistic commercial real estate.