Real Estate
LM Real Estate acquires Charlotte's Premier Distribution Center for $97M, marking the largest industrial sale of 2023.
LM Real Estate Partners, a New York-based firm, has made a significant move in Charlotte's industrial market by acquiring the Premier Distribution Center for $97 million. This 1.4 million-square-foot property, located at 1900 Continental Boulevard, marks the largest industrial sale of the year in Charlotte, with a price of approximately $69 per square foot. The seller, a joint venture between Somerset Properties and Waterfall Asset Management, had initially purchased the property for $63.8 million in 2019. This transaction highlights the robust demand and rising values in the industrial real estate sector, driven by the surge in e-commerce since the pandemic.
The Premier Distribution Center, previously a Continental Tire plant, has seen a significant increase in value, reflecting the strong industrial market in Charlotte. The property, now repurposed, includes tenants such as Spirit Halloween, Professional Builders Supply, Harris Tire, Snap One, and Deufol North America. However, LM Real Estate faces challenges as major tenants Snyder’s-Lance and the U.S. Postal Service are vacating, leaving over 436,000 square feet of available space. This acquisition follows LM Real Estate's previous purchase of the fully leased Logistics Pointe Distribution Center for $82 million, indicating the firm's strategic expansion in southwest Charlotte.
Charlotte's industrial market is experiencing dynamic changes, with a notable increase in supply and demand. According to Cushman & Wakefield, the city saw 340,000 square feet of positive net absorption in the first quarter, despite industrial vacancies rising to 5.6 percent due to an influx of nearly 17.7 million square feet of new supply over the last five quarters. This trend underscores the market's resilience and the ongoing demand for industrial space, driven by the growth of e-commerce and logistics operations.
The acquisition of the Premier Distribution Center by LM Real Estate Partners is emblematic of broader trends in the industrial real estate sector. The increasing value of industrial properties and the high demand for logistics and distribution centers reflect the sector's critical role in supporting e-commerce and supply chain operations. This deal also highlights the strategic importance of locations like Charlotte, which offer robust infrastructure and connectivity, making them attractive to investors and tenants alike.