Skyline Views

Like a Nimble Boxer, Charlotte Has Right Mix to Compete for Titles in Several Weight Classes

CHARLOTTE, N.C. (March 25, 2015) - Former Atlantan Brian Leary is doing exactly what Crescent Communities hired him to do - lead its charge into new urban commercial and mixed-use developments. 

Or, as the Charlotte Observer puts it, "Crescent Dives Head First into Urban Development." That's the headline of a story based on an interview of Brian by Observer's correspondent Ely Portillo. Click here to read the story.

Portillo asked to interview Brian, a client of The Wilbert Group, after reading this thought-leadership piece Brian wrote about why Charlotte has emerged as a favorite market for investors, developers and people and businesses seeking a new home.

Like a Nimble Boxer, Charlotte Has Right Mix to Compete for Titles in Several Weight Classes

By Brian Leary, President, Crescent Commercial/Mixed-Use

When I think of Charlotte these days, the image that often comes to mind, believe it or not, is that of legendary fighter Sugar Ray Leonard. Lean, fleet of foot and possessing a seemingly bottomless supply of energy, the North Carolina-born boxer used those attributes to scale the heights of the boxing world.

Similarly, the Queen City is emerging as a championship economic player through a potent combination of a nimble, business-friendly environment and a vibrant financial and millennial scene, and the rest of the world is taking notice.

Earlier this month, a Bloomberg News article detailed how commercial real estate developers and investors from across the globe are betting on Charlotte and a handful of other “secondary markets” across the U.S. because their long-term job markets, and thus the demand for commercial space, look so promising. Indeed, the reasons for optimism about Charlotte’s ability to maintain and expand its economic momentum are ample and include the following:

• Ongoing Appeal to the Financial Sector. Charlotte rode to economic prominence because of the banking industry and, with approximately $2.2 trillion in assets under control, remains the second-largest banking center in the U.S., behind only New York City. Looking ahead, Charlotte figures to remain a hotbed for the financial services sector. Its warm weather and low cost of doing business — only 86 percent of the national average according to a recent report — offer a appealing alternative to firms considering space in the Northeast, and its location in the Eastern time zone gives it a big leg up on the West Coast, where financial workers have to be on the job well before dawn to be ready when the markets open.

Furthermore, the top-notch talent produced by the many colleges and universities in Charlotte and the Triangle area offers an additional lure to financial firms contemplating relocations, and much of that talent is also fueling an energetic startup scene related to the financial services sector.

• High in the Sky. The second-largest hub for American Airlines, now the world’s largest airline after its merger with US Airways, Charlotte Douglas International Airport is a major boon to the city’s economic development efforts and has the lowest landing fees of any major U.S. airport. The airport offers non-stop service to more than 150 destinations, nearly 40 of which are international — tantalizing numbers for the business community. Put another way, the Queen City offers nearly unbeatable and affordable access to the rest of the globe.

• A Hearty Embrace of Transit. Although it resides in the very heart of the car-centric Southeast, Charlotte has been progressive in its adoption of commuting options in the form of light-rail and streetcar transit. The nearly 10-mile light-rail line that connects Uptown and the burgeoning South End neighborhood, the just-begun network of streetcar lines, and the expansion of the Lynx light-rail system to University Park to the north signal to companies — and to young workers that crave a location in which they are not completely reliant on cars — that Charlotte is dedicated to offering the best quality of life possible.

• Millennial Growth. According to a recent report by PricewaterhouseCoopers and the Urban Land Institute, Charlotte’s number of millennial residents (those ages 20-35) has grown by 23.4 percent over the past half decade. That’s the highest increase of the major U.S. metro areas and means the city can offer employers a large supply of the tech-savvy workers they desire.

• A Good Bargain. As noted above, the cost of doing business in Charlotte is well below the national average, and residents of the city also benefit from a relatively inexpensive cost of living and high quality of life. Similarly, real estate investors are attracted to the comparatively low prices of commercial properties in Charlotte, which offer them the prospect of greater returns than comparable assets in gateway markets such as New York or San Francisco.

Simply put, Charlotte’s affordability will continue to serve as a magnet for both businesses and residents, as well as the investors needed for a strong commercial real estate sector.

• Location, Location, Location. Charlotte itself is a beautiful city, but its appeal grows even more when you consider the easy access it offers to both the mountains and the ocean. Again, this dynamic is bound to exert a powerful influence when businesses are considering locations that will cultivate a happy workforce and young college graduates are contemplating where they would like to move.

Add these factors up, and it’s easy to conclude that the Queen City is at the beginning of a long, sustainable period of serious economic expansion. Companies will locate and grow here; construction cranes will dot the skyline; and, just as Sugar Ray was in the 1980s, Charlotte will be in championship form for a long time to come.

Brian Leary is president of Crescent Communities’ commercial and mixed-use business unit. 

Cousins Properties' Thad Ellis Leads REIT's New Development Charge in Charlotte

ATLANTA (March 20, 2015) - It's great to see Thad Ellis, a friend and Delaware native, leading Cousins Properties' new development effort in Charlotte. It comes as The Wilbert Group ramps up its efforts in the Queen City, led by our work with Crescent Communities.

The Wilbert Group would be conflicted out of working with Thad and Cousins in Charlotte because of our growing relationship with Crescent. That said, we wish our buddy great success - just not when competing head-to-head with Crescent for raw land or prize tenants.

- Tony Wilbert

Here's the scoop from Will Boye of Charlotte Business Journal.

Cousins Properties looking for development opportunities in Charlotte

Mar 20, 2015

 

Thad Ellis, by Bard Wrisley

"We didn’t want to just stick our toe in the water," Ellis says of the company's acquisition of the Fifth Third Center uptown.

Cousins Properties Inc. has no regrets about the price it paid to acquire the Fifth Third Center building in uptown Charlotte last year, but now the Atlanta-based real estate investment trust is shifting away from acquisitions and focusing on development opportunities in Charlotte.

That’s what Thad Ellis, a senior vice president with Cousins, told me in an interview this week. Ellis oversees the Atlanta, Dallas, Charlotte and Raleigh markets for Cousins, which acquired the 30-story Fifth Third Center last year for $215 million, a record price on a square-foot basis for a Charlotte office property.

Cousins owns 17 properties totaling 16.2 million square feet in Charlotte, Atlanta, Dallas, Houston and Austin, Texas. That includes the nearly 1.1 million-square-foot Gateway Village complex in uptown Charlotte, which Cousins developed and co-owns with Bank of America Corp.

During Cousins’ fourth-quarter conference call last month, CEO Larry Gellerstedt said the company won’t be a big buyer in 2015 due to the rising prices for office properties. Ellis echoed that sentiment this week but said the company is actively looking for development opportunities in Charlotte and is happy with its purchase of the Fifth Third Center, where a new tenant recently signed and an existing tenant expanded. Fifth Third Center is approximately 84% leased.

Following are excerpts from our conversation:

Cousins purchased Fifth Third Center last year for a big number. How do you feel about that purchase today?

We’re very pleased. We’re very bullish on Charlotte as a corporation. We’ve been trying for several years to get back in the market in a meaningful way. There’s no question Charlotte’s got some terrific dynamics. It’s an inexpensive place to do business. It’s one of the leaders in the Southeast. The airport is only going to be more of a draw. The fact that you all have a plan for light rail and transit and you’re executing on it puts you way ahead of other Southeastern markets. I know everybody loves to get hung up on millennials, but you walk through downtown Charlotte, and it’s very vibrant and youthful. And people want to live in Charlotte because of the cost of living and the quality of life. All of that is a real plus for us. Did we pay a high number to acquire Fifth Third? History will dictate, but we felt like it was a very sound investment because of who the customers are, the quality of the real estate, where it’s located. And we really wanted to get back into the market in a meaningful way. We didn’t want to just stick our toe in the water.

How do the sales and prices for office properties here compare with what you’re seeing in other markets?

Charlotte is on everybody’s radar, so there are no secrets, and there’s no one stealing anything on acquisitions. I’m not going to be so bold to say that we won’t acquire additional trophy assets in the next 12 to 24 months, but I think you’ll see us have a lot more success and focus on new development. Not necessarily speculative development, but hopefully with anchor tenants and build-to-suits. We just think for the adjusted risk-reward, right now we’re in a cycle where new development is more attractive to us than acquisitions. Higher projected yields.

Do you see any opportunities in Charlotte for development?

We do. We’re focused on the Charlotte urban area. We would include SouthPark in that. Everything from the central business district to South End on into SouthPark. It’s vibrant, job growth is healthy, the multifamily industry seems to be leasing up well. All things that are good indicators. It’s real favorable right now.

How’s the leasing activity at Fifth Third?

If there has been a surprise for us in Charlotte, it’s that the velocity of deals in the central business district has been OK. I wouldn’t give it strong marks. And the deals have been smaller than we would have anticipated. There’s not a lot of full-floor users and larger in the market today. Most of that activity seems to be more in SouthPark and elsewhere. But we’re very happy with the creditworthiness of the tenants. And with the deals that we plan to announce, it also allows us to break up some of those floors and we can do smaller deals and be that much more competitive. We’re very pleased with where we are at Fifth Third.

 

With Whole Foods, Light Rail, Crescent's TOD Will Transform Uptown Charlotte

CHARLOTTE, N.C. (Feb. 11, 2015) - In its earnings announcement today, Whole Foods Market confirmed it has signed a lease for a new store in Charlotte. That location, Whole Foods' first in Uptown Charlotte, will be a key piece of a new transit-oriented development from Crescent Communities.

The development and new Whole Foods mark a milestone for Charlotte's city center.

“It is our vision that this Crescent community will redefine urban living in Charlotte,” said Ben Collins, regional vice president for Crescent. “Whole Foods Market will be Uptown’s first full-sized grocery store. Its size, combined with Whole Foods Market’s holistic approach to the shopping experience, will allow residents, commuters and visitors to enjoy Uptown in an entirely new way.”

Here's the full release from Crescent. The Wilbert Group has joined Crescent's team or PR agencies and looks forward to spreading the word about all the cool things it's doing.

  

Crescent Communities to Bring Whole Foods Market to Uptown Charlotte in Mixed-Use, Transit-Oriented Development

 

Five-acre Site Design Complements Company’s Plans for Tryon Place

to Redefine City’s Stonewall Corridor

 Crescent Communities has unveiled plans for a mixed-use, transit-oriented development (TOD) that will bring Uptown Charlotte its first Whole Foods Market. The company’s plans for the 5.4-acre site at the Lynx Light Rail’s Stonewall Station define a new model of urban living for the area and complement its Tryon Place mixed-use development to redefine the city’s Stonewall corridor.

The plans feature a 47,000 square-foot Whole Foods Market, 450-unit luxury apartment community and parking deck along with retail and up to two hotels.

“It is our vision that this Crescent community will redefine urban living in Charlotte,” said Ben Collins, regional vice president for Crescent. “Whole Foods Market will be Uptown’s first full-sized grocery store. Its size, combined with Whole Foods Market’s holistic approach to the shopping experience, will allow residents, commuters and visitors to enjoy Uptown in an entirely new way.”

Located at the southwest intersection of Stonewall and Caldwell streets, the community will be directly connected to the Stonewall Station, which serves popular Uptown destinations including the NFL Carolina Panthers’ Bank of America Stadium, Levine Center for the Arts, and the Charlotte Convention Center. With free-flowing access to Whole Foods Market, it represents one of the nation’s most accessible transit-oriented grocers and is perfectly situated for everyday Uptown living.

“We’ve enjoyed being part of the Charlotte community since 2012 and are excited about the city’s continued growth,” said Jeff Turner, executive coordinator of operations with Whole Foods Market. “We look forward to offering both convenience and a gathering place to our future neighbors and Uptown’s visitors.”

Whole Foods Market, residences and hotels also complement the plans for Crescent’s Tryon Place, just west of the site. Tryon Place, on more than three acres at the corner of Stonewall and Tryon streets, is a planned mixed-use community with Class A office, restaurants, retail and full-service hotel.

“We see a strategic opportunity for Crescent to create something transformational for Charlotte along South Tryon Street and the Stonewall corridor,” said Crescent CEO Todd Mansfield. “With a new mix of development for this part of Uptown, our plans will enhance the area’s walkability, encourage engagement, and further connect the city’s core with South End. It’s very reflective of the growth and sustainability that the community asked for in the Center City 2020 Vision Plan.”

 Crescent’s approach to development is centered on building a sense of community for residents, workers and visitors through thoughtful design and engaging social spaces. In addition to a raised, transit-level public plaza, the new project at Stonewall and Caldwell includes a resident-only outdoor amenities area. Designed atop the parking deck, the resort-style pool and outdoor living space offer uninhibited views of the skyline looking up Tryon Street. The two residential buildings include a mid-rise as well as a high-rise with fewer but larger and more luxurious units, providing a boutique feel.         

Crescent will break ground on the new community on Stonewall Street this year and is targeting 2017 for its opening date.

            Bill Moseley of Moseley Real Estate Advisors represented Whole Foods Market. Lord Aeck Sargent and Preston Partnership LLC provided site planning and design services for Crescent Communities, and Land Design is the civil engineer.

 

About Crescent Communities

Crescent Communities, LLC (www.crescentcommunities.com) is a leading real estate investment and operating firm driven to create long-term value by developing thoughtful, sustainable communities that improve people’s lives. Founded in 1963, Crescent’s original mandate as a land management company continues to inform its commitment to the wise stewardship of natural resources. The company finances, plans and develops properties in the Sunbelt and Mid-Atlantic markets that represent more than 50% of the U.S. population growth over the next decade. Its multi-product platform includes residential, multi-family, mixed-used, commercial and land assets, valued in total at $1.2 billion. Crescent’s robust capital deployment, seasoned leadership team, and model of sustainability enable the company to maximize opportunity in a recovering real estate market.

 

About Whole Foods Market®

Founded in 1980 in Austin, Texas, Whole Foods Market (wholefoodsmarket.com, NASDAQ: WFM), is the leading natural and organic food retailer. As America’s first national certified organic grocer, Whole Foods Market was named “America’s Healthiest Grocery Store” by Health magazine. The company's motto, “Whole Foods, Whole People, Whole Planet®” captures its mission to ensure customer satisfaction and health, Team Member excellence and happiness, enhanced shareholder value, community support and environmental improvement. Thanks to the company’s more than 85,000 Team Members, Whole Foods Market has been ranked as one of the “100 Best Companies to Work For” in America by FORTUNE magazine for 17 consecutive years. In fiscal year 2013, the company had sales of $13 billion and currently has 399 stores in the U.S., Canada and the U.K.

 

 

# # #

Contacts:     

Laura King Edwards                                               Heather Tamol
704-926-1334                                                          704-926-1326
[email protected]                                     [email protected]     

Charlotte Ups Ante in Battle with Atlanta for New Jobs

CHARLOTTE (Nov. 18, 2014) - I wouldn't be surprised if Atlanta Mayor Kasim Reed places a congratulatory call to Bill Cronin today, though the mayor wouldn't be wishing him good luck in much success in Cronin's new venture.

That's because former Invest Atlanta VP Cronin - who played a key role in the city of Atlanta's economic development efforts under Reed - yesterday was named head of economic development in Charlotte. Cronin will leave his position as executive director of the American Red Cross' outpost in Columbia, South Carolina, and head a little bit north next month. In photo above, Cronin (right) celebrates the expansion and opening of a new headquarters of gaming company Thrust Interactive with Mayor Reed and Thrust CEO Jesse Lindsley.)

During his tenure in Atlanta, The Wilbert Group served as Invest Atlanta's public relations agency of record. I saw firsthand and got a behind-the-scenes look as Cronin helped woo major companies to the city of Atlanta - both from outside the metro area (PulteGroup) and inside (athenahealth). He used knowledge gained during economic development stints in South Carolina and Florida to best position Atlanta when the city competed with those states for new jobs.

We suspect the savvy Cronin will do the same and leverage what he knows about Atlanta and how the city and state incentive plans work to help Charlotte. Cronin discusses this overall strategy at this in an article in the Charlotte Observer.

“Having been a competitor to Charlotte in my previous roles, I understand the city’s strengths and challenges.

“I love Charlotte,” said Cronin, in a statement. “I am very excited about working with the business community.”

As for the Atlanta mayor, he's made it perfectly and publicy clear on several occasions that Charlotte is a second-tier city striving to be an Atlanta when it grows up. It will be interesting to watch things play out when Charlotte and Atlanta compete for the same headquarters relocation or new job-creating tech endeavor.

 

 

Where's Former Atlanta BeltLine President Brian Leary? In the @WSJ, That's Where

Anyone wondering what former BeltLine President and CEO Brian Leary is up to these days need look no further than today's Wall Street Journal.

In September, Charlotte-based Crescent Communities picked Leary as president of its commercial and mixed-use divisions, and he's already overseeing development of a $500 million mixed-use development dubbed Tryon Place.

In today's Plots & Ploys column in the WSJ, Leary tells reporter Peter Grant that Crescent is seeking an anchor tenant and hopes to get construction finance to start the project next year. Short of that, Crescent "also might move forward with all-equity financing if it can find a partner," Grant reports.

Grant's column item, under the headline "Charlotte is Chugging," focuses on office developers moving ahead with spec office towers "for the first time in years" and says it's a "sign of strength" in second-tier cities. Charlotte boosters will love the item but might quable with being termed second-tier. The Wilbert Group, the nationa's leading commercial real estate PR firm, is proud to represent Charlotte-based Lincoln Harris, which has some cool plans of its own for the Queen City.

As for Leary, it's good to see him moving and shaking again. He rejoined Jacoby Development after resigning as BeltLine president as the result of an inquiry into expense reports. We hated that he left Atlanta but are glad to see him kicking ass in Charlotte.

 

Former Atlanta BeltLine President Heading to Charlotte for New Job

ATLANTA (Sept. 3, 2014) - Brian Leary, the former president of Atlanta BeltLine Inc. and one of the key players in the redevelopment of former Atlantic Steel (now Atlantic Station) site, is heading to Charlotte.

Leary, who rejoined Jacoby Development Inc. after leaving the BeltLine amid some controversy in August 2012, has accepted a position with Crescent Communities, where he will head commercial development.

Jarred Schenke of Bisnow broke the news today. I wish Brian the best of luck in the Queen City and wanted to send him off with an oldie-but-goodie BeltLine update that I got when The Wilbert Group represented Carter. Below the video is Jarred's scoop.

We just learned yesterday that Jacoby Development's wunderkind Brian Leary has taken a job as head of commercial development for Crescent Communities. It's a huge move for Brian, who was one of the main architects for Atlantic Station, and one of the pioneers for the smart growth development movement. Brian's most recent stint with Jacoby comes after a term overseeing the BeltLine until 2012. Since rejoining Jacoby, Brian has spearheaded the developer's efforts on a number of projects, including The ONE Daytona mixed-use project.