An affiliate of Equus Capital Partners, Ltd. (“Equus”), one of the nation’s leading real estate investment managers, has acquired a 9-property, 1.4+ million square foot industrial portfolio located in the Charlotte and Piedmont Triad industrial markets. The portfolio was acquired in early March 2024 for $124,000,000 by an Equus sponsored value-added fund (“Equus Investment Partnership XII, L.P.”).

The portfolio is predominantly comprised of single-tenant bulk distribution properties and is 100% leased to nine tenants. The 9-building portfolio – eight in the Charlotte MSA and one in the Greensboro MSA – range from 38,480 to 382,668 SF in size and boast several high-profile credit tenants including FedEx, Lenovo, and American Woodmark.

The Charlotte segment of the transaction totals 1,215,074 square feet across 8 buildings in the Lincoln, Cleveland, and Iredell County submarkets. The Charlotte industrial market’s vacancy rate continues to sit in the low single digits following years of strong net absorption. The region’s connectivity to I-85, a key logistics corridor serving many of the high growth MSAs in the Sun Belt, and I-40, the third longest interstate highway in the U.S. and key east-west artery, make the market a destination for logistics users.

The Greensboro asset totals 241,050 square feet and is centrally located amongst Equus’ existing industrial portfolio in the market. The Greensboro market, commonly referred to as the Piedmont Triad, continues to benefit from the expansion of the Piedmont Triad Airport (GSO), the manufacturing and distribution base in Greensboro/Winston Salem, and the continued growth in the Raleigh-Durham area. Like Charlotte, the I-85/I-40 Interstate spine provides direct access to many of the Southeast’s most prominent MSAs.

“This investment gave us the opportunity to acquire well leased, functional assets, at a favorable basis relative to replacement cost,” commented Tim Feron, Vice President of Acquisitions who along with Tucker Scaringe, Acquisitions Analyst and Laura Brestelli, Senior Vice President and Director of Capital Markets, oversaw the acquisition for the firm. “The high historical occupancy and below market in-place rents will provide for an opportunity to increase net operating income and expand lease duration going forward. Furthermore, the portfolio allows for additional density with over 400,000 SF of development and expansion potential. The Charlotte and Greensboro industrial markets continue to benefit from the positive net migration and favorable business climate in North Carolina. This portfolio’s easy access to established distribution corridors serving the region should position it well to capitalize on the resulting future demand,” Feron continued.

Equus currently manages and operates assets totaling over 30 million square feet of industrial space across the United States, as well as other land assets capable of supporting another 5 million square feet of new industrial development. Equus is focused on expanding its clients’ holdings in the industrial sector as well as in the multi-family sector within which the firm manages and operates more than 8,000 apartment units.