JULY 15, 2014
Carolinas Commercial Properties E-Newsletter
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CAPITAL ADVISORS SECURES $17.2M LOAN FOR MIXED-USE PROPERTY 
The mixed-use Main Street Square property offers 172 apartments
and 32,285 square feet of commercial space in Holly Springs, N.C.

HOLLY SPRINGS, N.C. -- Capital Advisors has arranged $17.2 million in refinancing for Main Street Square, a mixed-use development in Holly Springs, a suburb of Raleigh. The portion of the Class A property acting as collateral for the loan includes 172 apartment units and 32,285 square feet of commercial space. Main Street Square also includes 70,000 square feet of office and retail space, a 6,000-square-foot medical office building, 101 townhomes and 16 cottage homes. Cooper Willis of Capital Advisors' Charlotte office arranged the 10-year loan with a fixed interest rate and 30-year amortization schedule through Morgan Stanley on behalf of the borrower, MSS Apartments LLC.

 

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BOJANGLES' OPENS 600TH LOCATION

Charlotte, N.C.-based Bojangles' Restaurants expects to open
55 to 60 locations throughout the Southeast this year.

CHARLOTTE, N.C. -- Bojangles' Restaurants Inc. has opened its 600th restaurant, located on Galleria Boulevard off Monroe Road in Charlotte. The Charlotte-based chicken chain expects to open 55 to 60 locations throughout the Southeast this year, adding new restaurants in more than 25 market areas including Atlanta; Birmingham, Alabama; Orlando; Richmond, Virginia; and Nashville, Knoxville and Tri-Cities, Tennessee. This year's expansion is part of Bojangles' long-term growth plan to operate 1,000 locations open by 2020.

 

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BANYAN, INVESTRA BUY HOLIDAY INN EXPRESS IN BLUFFTON

 

The 112-room Holiday Inn Express & Suites features 1,250 square feet of meeting space, a business center and an outdoor swimming pool.

BLUFFTON, S.C. -- Banyan Investment Group and Investra Investments have formed their second joint venture this year to purchase the 112-room Holiday Inn Express & Suites in Bluffton. The hotel features 1,250 square feet of meeting space, a business center and seasonal outdoor swimming pool. The hotel is located six miles from Hilton Head, 25 miles from Savannah and 90 miles from Charleston. The joint venture purchased the asset from Veritas Hospitality Group, a division of the Stafford Cos. Loxi Hospitality provided advisory services in the transaction.

 

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LINCOLN BROKERS $2.3M COLUMBIA OFFICE BUILDING SALE

Red Hills Holdings LLC purchased the 57,375-square-foot office property for $2.3 million in Columbia, S.C.

COLUMBIA, S.C. -- Lincoln Property Company Southeast has brokered the sale of the Seventy Seven Building in Columbia. Red Hills Holdings LLC purchased the office property from GE Commercial Finance Business Property Corp. for $2.3 million. Located at 101 Business Park Blvd., the two-story, 57,375-square-foot office building was 37 percent leased at the time of sale. Denton Shamburger and Chip Sipple of Lincoln's Atlanta office represented the seller in the transaction, while Roger Winn of NAI Avant represented the buyer.

 

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STRONG JOB GROWTH IN JUNE SPELLS GOOD NEWS FOR PROPERTY MARKETS
 
By Scott Reid

Robert Bach


Private sector employers in June added 262,000 jobs and government agencies added 26,000 positions, resulting in a net gain of 288,000 new jobs that will potentially have a substantial impact on commercial real estate, according to a Marcus & Millichap report. During June, the national unemployment rate fell to 6.1 percent from 6.3 percent in May, reaching its lowest level since September 2008.

Brighter employment prospects for the youngest workers will potentially lead to the creation of new households, unleashing new demand for rental housing, according to Marcus & Millichap.

The national apartment vacancy was flat in the first quarter, but elevated apartment completions in select markets will underpin a 20 basis-point rise in vacancy this year to 5.2 percent, forecasts  Marcus & Millichap. The possibility that newly formed households can generate demand greater than currently projected, however, may further minimize the forecast increase in nationwide vacancy during 2014, the report emphasizes.

Marcus & Millichap predicts that job growth in degreed professional and business service fields, as well as financial services, will fill vacant office space and generate demand in the remaining quarters of this year.

An increase in tenant demand will result in a 120 basis-point drop in U.S. vacancy to 14.8 percent this year, predicts Marcus & Millichap.

Robert Bach, director of research for the Americas with Newmark Grubb Knight Frank, describes the job growth in June as "robust." He also believes the job increases in the sectors most important to commercial real estate will boost landlords' net operating income as space is filled and rents move higher. This will, in turn, he says, support investment activity.
 

 
During the second quarter of 2014, an average of 272,000 total positions were added monthly, surpassing the average monthly gain of 190,000 new jobs in the first quarter. The office-using sectors, comprising information, financial activities and professional and business services, added a combined 93,000 jobs in June, well above the previous six-month average of 51,900. 
 
Hiring at retail stores led to an increase of 72,000 trade, transportation and utilities positions. Due to recent positive reports on factory orders and manufacturing, the nation's plants added 16,000 posts in June, while construction payrolls grew by 6,000 positions. 
 
What's more, revised figures provided by the Bureau of Labor Statistics for April and May show that employers added  29,000 more nonfarm payroll jobs than previously reported. 
 
According to Bach, some analysts suggest that the improving labor market could prompt the Federal Reserve to raise interest rates sooner than it had intended in order to head off inflation. However, Bach says inflation is unlikely to become problematic with wage growth mired around 2 percent, which remains low by historic standards. 
 
Bach, who has previously called the labor market "remarkably consistent in its unremarkable performance," says the decline in unemployment from 6.3 percent in May occurred for the right reasons. He cites the fact that the number of survey respondents who said they worked during the reference week rose substantially, the number of unemployed fell substantially and the labor force expanded modestly. This had the effect of prompting discouraged persons to resume previously abandoned job searches. 
 
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Upcoming Events
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Raleigh/Durham Lunch Meeting: August 12

BOMA Raleigh/Durham's lunch meeting will feature Kenneth McArtor with the Wake County Department of Revenue. He will speak about the overall revaluation process and drill down on the income approach, which is applicable to commercial properties.
Tuesday, August 12; 11:30am - 1:00pm
One Eleven Place
111 Realtor's Way
Cary, N.C. 27513
Click here to RSVP by August 6.
 
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BOMA Fall Conference: September 12

BOMA Carolinas/West Virginia Fall Conference.
Friday - Sunday, Sept. 12 - 14
Hilton DoubleTree
181 Church Street
Charleston, S.C. 29401
Click here for more information.
 
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Do you have an upcoming event you would like to see listed here? Send an email to ccp@francemediainc.com.

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