This South End property has traded hands for $7.3 million.
Abacus Capital of Charlotte and Big Cypress Capital of Naples, Florida, intend to invest several million dollars to breathe new life into the Pavilion at South End.
That joint venture is being funded through Big Cypress’ Headwaters Real Estate Opportunities Fund I.
“We believe this is a well-located and underutilized asset that has tremendous uncaptured upside potential,” says Wes McAdams, managing partner of Abacus Capital.
Abacus is a Charlotte-based real estate investment management firm.
Josh Beaver with The Nichols Co. represented the seller, WGASA LLC, in the transaction. David Morris of Trinity Partners represented the buyer.
“It’s bittersweet selling The Pavilion after working on it for so many years, but it’s a trophy property in the hottest urban core submarket in Charlotte, so the time was right for our client,” Beaver says.
The roughly 1.4-acre parcel sits at 2041 S. Blvd. — across from Atherton Mill, which is in the midst of a $100-million plus revamp.
Construction on that 31,000-square-foot strip shopping center is expected to start in early 2019. The project will restore the 1950s-era building while enhancing aesthetics and functionality.
“Against the backdrop of an increasingly internet-driven retailing environment, we really like the long-term viability of shadow-anchored retail projects in fortress locations,” McAdams says.
The goal is to line up hard and soft goods with a mix that is “internet resistant,” he adds.
That list includes high-quality food and beverage tenants as well as a brewery, beer garden or taphouse.
The current space is approximately 35% leased, McAdams says.
Adam Williams with Legacy Real Estate Advisors is handling leasing for the project, which should deliver in summer 2019.
Cline Design is the architectural firm of record.
McAdams Co. is providing civil engineering services, while Chip Shelton and Liberty Solutions will be the project’s general contractors.
Foundry Commercial will be property manager going forward.
Harris Ralston and Alex Wilson of CBRE Capital Markets arranged acquisition and renovation financing on behalf of Abacus and Big Cypress.
Abacus was launched in 2018. That firm looks to build a portfolio of best-in-class and next-generation real estate investment opportunities.
This is the firm’s second deal with Big Cypress’ Headwaters fund. They’re developing a 120,000 square foot multi-story, climate-controlled self-storage project in south Charlotte. ExtraSpace Storage will manage that project when it delivers in mid-2019.