Somerset Properties

Premier Industrial Center

Charlotte, NC

Number of Buildings: 1

Property Size: 1,361,719 SF

Acquisition Date: December/2019

Sale Date: May/2024

Purchase Price: $63,750,000 ($47/SF)

Sale Price: $108,750,000 ($80/SF)

Deal Level IRR: 25.1%

Deal Level Equity Multiple: 2.63x

• A heavy value-add repositioning of a functionally obsolete manufacturing facility into a multi-tenant modern industrial complex situated on 92 acres and located in the heart of Charlotte’s Southwest industrial submarket.
• At acquisition in December of 2019, the asset was a Continental Tire manufacturing facility, which suffered from functional obsolescence, disrepair, and thus low occupancy. Somerset transformed the property as part of a $6.2m capital improvement plan into a modern distribution complex that features 24’ clear heights, ESFR sprinkler systems, motion- sensor LED lighting and a white-boxed interior.
• The repositioning included: Constructed 35 new loading doors to create cross-dock capability; Replaced antiquated water tanks with a modern pumphouse for ESFR sprinkler system; Constructed perimeter ring road to improve ingress/egress and provide access to 26-acre development site; Completed testing and remediation necessary to secure final Brownfield Agreement with NCDEQ; adding 38 dock positions, a new fire pump and improving full building circulation leading to a rapid lease up period.
• The property was sold along with a 26-acre vacant development land parcel that Somerset ushered through the preliminary development approvement process during the hold.