Firm purchases two, Class A office buildings totaling 226,863 square feet in thriving live-work-play district
Bridge Investment Group LLC’s (Bridge) subsidiary Bridge Office Fund Manager (Bridge Office) announced today the acquisition of LakePointe Corporate Center 3 and 5, a two-building, 226,863-square-foot, Class A office portfolio adjacent to Charlotte Douglas International Airport in North Carolina.
With an influx of new investment surrounding the airport and proximity to the master-planned City Park community and mixed-use River District development, the property is experiencing strong leasing momentum and is well positioned for future growth and success. Currently 52% and 100% occupied respectively, LakePointe 3 and 5 are home to industry leading tenants such as Compass Group, Fontem Ventures, Midrex Technologies, Toshiba and Westinghouse.
Originally built between 2001 and 2006, the campus recently underwent $1.6 million in interior, exterior and common area renovations. New features include attractive glass-lined spaces and a best-in-class amenity package that features a modernized fitness center, locker rooms with showers, a community conference room and a full-service cafe?. Situated on more than 15 acres with ample greenspace and a lake, tenants also enjoy access to sweeping lakeside views, outdoor patio seating and walking trails. In line with Bridge’s proven value-add strategy for creating next-generation workplaces, the firm plans to invest $1.3 million in additional capital improvements to maintain the property’s status as a leading destination for the market’s top professional talent.
“As the latest purchase for Bridge’s ever-growing Charlotte portfolio, the acquisition of LakePointe Corporate Center 3 and 5 strengthens our foothold in one of the country’s most prolific office markets,” said Tommy Spinosa, director of Acquisitions and Asset Management for Bridge Investment Group. “The wide-ranging amenities both on property and in the surrounding submarket will serve as a talent magnet, and align with our proven business strategy of creating office communities where people enjoy coming to work.”
The fifth fastest growing metropolitan in the country since 2010, Charlotte’s Class A office market is currently 92.1% occupied and has become increasingly competitive, garnering nearly 4.1 million square feet of positive net absorption in the past 36 months. The Airport submarket is the second largest office submarket in Charlotte, trailing only Uptown.
With high connectivity to the region’s primary transportation arteries and most vibrant neighborhoods, the Airport submarket has attracted a multitude of Fortune 500 companies such as Sealed Air and Belk, Vanguard, Atrium Health, Walmart, AT&T and Lufthansa. BB&T also occupies neighboring LakePointe 1 and 2. In addition, the submarket is seeing an influx of new arrivals, including a $200-million investment from Amazon in a high-tech distribution facility.
Charlotte’s unprecedented growth is attributed to a myriad of factors, including the Queen City’s friendly business climate, established infrastructure, talent pipeline from top universities nearby and the highly lauded quality of life. Within minutes, LakePointe Corporate Center has access to more than 380,000 square feet of retail, two golf courses and multiple public parks, with more retail, dining, residential and entertainment options planned within adjacent developments. The airport is also undergoing a massive $2.5-billion, long-term capital program that is expected to further spur growth in the area.
The transaction at LakePointe 3 and 5 comes on the heels of Bridge Office’s recent acquisition of the 161,698-square-foot Capital Center and 168,310-square-foot Somerset Corporate Center in Raleigh, North Carolina. Bridge also owns Harris Corners, a three-building office campus encompassing 361,879 square feet in Charlotte. A fast-rising player in the U.S. commercial office market, Bridge Office currently has a presence in 15 states.
Available office spaces at LakePointe 3 range from 3,000 square feet to a full floor vacancy of 29,000 square feet.
Bridge Commercial Real Estate LLC, the operating company for Bridge Office, will oversee property management and redevelopment work at LakePointe Corporate Center 3 and 5. Improvements will begin immediately.
Ryan Clutter of JLL represented the seller in the transaction.
About Bridge Investment Group
Bridge is a privately held real estate investment management firm with $20.1 billion in assets under management. Bridge combines its more than 3,600-person, nationwide operating platform with specialized teams of investment professionals focused on select US real estate verticals, which Bridge believes offer above-market opportunity: Multifamily; Office; Seniors Housing and Medical Properties, Affordable Housing, Opportunity Zones and Real Estate Debt Strategies.
Bridge principals are owners and operators who are deeply rooted in their assets. In-depth knowledge of local markets, as well as extensive real asset and capital markets expertise, enable Bridge to develop prolific deal flow and to deploy active asset management and monitoring across its business lines.
Bridge’s asset management strategy is specialized and focused in a way that emphasizes current income and capital appreciation while mitigating risk. By making improvements that build lasting communities, increase renter satisfaction, and ultimately bring value to investors, Bridge seeks to create alpha at the asset level.
The principals of Bridge have been investing in and improving communities around the US since 1991 and manage private equity funds, separately managed account vehicles, co-investments, and joint ventures. Bridge seeks to transform assets in a manner that maximizes their potential.
