Baltimore, MD – A joint venture owned by Alex. Brown Realty (ABR) and Insite Properties has acquired the Charlotte Medical Plaza in Charlotte, North Carolina. ABR Chesapeake Fund IV, a value-added real estate fund sponsored by ABR, invested $5.3 million in the venture.
Charlotte Medical Plaza is a 92,581 sf medical office complex that includes two medical office buildings located on Billingsley Road in the affluent Myers Park neighborhood of Charlotte. The building at 300 Billingsley Road includes 37,232 sf and was developed in 1990. The building at 330 Billingsley Road is 55,349 square feet in size and was developed in 1993. The two buildings share similar exterior architectural features and 467 common parking spaces but have always been separately owned.
“The acquisition represented the unique challenge of simultaneously negotiating with two separate sellers to take control of the entire complex,” commented Jay Blanton, managing partner of Insite. “We believe significant savings and efficiencies can be realized through owning and operating both buildings under a common ownership.”
Charlotte Medical Center is currently 71% occupied by 15 tenants, the majority of whom are associated with Charlotte’s two leading hospitals, Carolinas Medical Center and Presbyterian Hospital – both are which a 10-minute drive from the properties.
“We are pleased to be partnering with Insite on this acquisition,” said Tom Burton, CIO of ABR. “The buildings were underperforming and undermanaged. With an aggressive marketing and leasing plan, targeted capital improvements and improving market conditions, we expect to see strong annual operating cash flow and above-average capital appreciation for our investors.”
Alex. Brown Realty (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Insite Properties is a Charlotte-based full service real estate company formed in 2001 that focuses on acquiring existing assets where they can add value through improved management and leasing strategies.