FCP®, with JV partners Abacus Capital (Abacus) and Big Cypress Capital (Big Cypress), has closed on the $9.0 million acquisition of 2320 Toomey Avenue in South End Charlotte, NC, adding to what will be the largest remaining assemblage of adaptive reuse properties in South End. The existing legacy midcentury warehouse building at 2320 Toomey will be repositioned as approximately 77,000 square feet of creative office space as part of a broader transformation of the Toomey Avenue corridor. The redeveloped buildings will offer tenants an exciting first-generation, Class A creative commercial environment in one of the most dynamic submarkets in the Southeastern US.
This growing collection of adaptive reuse projects totaling nearly 150,000 square feet, in conjunction with surrounding planned mixed-use development, will be known as The Quarter South End. The branding reflects the authenticity of the corridor’s industrial past with a nod to the innovative atmosphere that has developed with the emergence of South End’s creative class. The project team plans to commence construction in May 2021 on the first phase of the redevelopment, totaling approximately 25,000 square feet at 2218 Toomey Avenue. The new website for The Quarter is thequarterSE.com.
“The acquisition of 2320 Toomey adds additional critical mass to our master plan for the transformation of this district,” said FCP Senior Associate, Kevin North. North continued, “With construction starting imminently on 2218 Toomey, and on the remainder of the properties later this year, prospective tenants will now be able to clearly visualize the opportunity to work in a top-class creative environment that fuels culture and collaboration while putting teams within steps of South End’s abundant amenities.”
“With this latest acquisition, Abacus and its partners are pleased to formally announce The Quarter South End – which will, upon full buildout, be a fully self-contained creative microdistrict within Charlotte’s South End,” said Wes McAdams, Managing Partner of Charlotte-based Abacus Capital. “As South End continues its evolution into a true 18-hour submarket replete with its own skyline, The Quarter’s thoughtfully curated authenticity should prove to be a competitive differentiator for years to come. Further, with the continued institutionalization of creative office as an asset class, we are confident The Quarter will have broad and sustainable appeal amongst the prospective tenant universe,” McAdams added.
”The successful acquisition of this property, along with the team’s additional recent closings, demonstrates our continued commitment to identifying, partnering and transacting with best-in-market Strategic Operators like Abacus that possess deep investing expertise and proprietary deal flow,” said Big Cypress CEO and Co-CIO, Max Mazzone. “This joint venture with Abacus and FCP demonstrates Big Cypress’s unyielding focus on creating value for its investors and partners through its innovative Co-GP investment strategy.”
“The Quarter South End has been extremely well received during our early marketing efforts and today’s announcements should only enhance the appeal for prospective tenants who are seeking an alternative to traditional office product,” said Foundry Commercial Partner John Ball. “Charlotte has proven strong demand for adaptive reuse space in recent years and this larger mixed-use opportunity in the city’s original creative submarket should really resonate with both existing and new to market users. With leasing activity picking up across Charlotte and South End in particular, we are really excited to be part of such a dynamic development and experienced project team.”
The Quarter South End currently includes three single-story warehouse buildings but is envisioned to include additional parcels and buildings in the future as it evolves into a true mixed-use live-work-play environment adjacent to the core of Charlotte’s South End along the rapidly evolving West Tremont Avenue corridor. Charlotte’s South End is considered one of the most promising mixed-use submarkets in the Sunbelt, with continued strong job growth and corporate relocations attributed to Charlotte’s business-friendly environment, diversified financial services and tech employment base, international airport, quality of life, and cost of living. The South End is characterized by the city’s best retail and dining opportunities, nearby light rail stations and access to the rail trail.
Foundry Commercial’s John Ball and Claiborne Dandridge have been retained to lease the office portion of the project while Legacy Real Estate Advisors’ Adam Williams will handle retail leasing. Redline Design Group will be the architect and the McAdams Company will be the civil engineer on The Quarter South End while WIMCO will be the general contractor. Foundry Commercial will also property manage the project on behalf of the venture.
FCP® is a privately held real estate investment company that has invested in or financed more than $8.6 billion in assets since its founding in 1999. FCP invests directly and with operating partners in commercial and residential assets. The firm makes equity and mezzanine investments in income-producing and development properties. Based in Chevy Chase, MD, FCP invests both its commingled, discretionary funds and separate accounts targeted at major real estate markets in the United States. For further information on FCP, please visit www.fcpdc.com.
About Abacus Capital
Abacus Capital is a multi-strategy tactical real estate opportunity investor focused on the acquisition and development of differentiated commercial real estate in growth markets across the southeastern United States. Recognized as one of the fastest-growing real estate investment managers in the Charlotte market, Abacus’ mission is to identify investment opportunities that we believe offer our investors the most compelling risk-adjusted returns in dynamic capital markets environments. The principals of Abacus Capital have over 25 years of real estate investing experience and have acquired or developed over 16.5M square feet of commercial real estate with a total capitalization in excess of $3.1B.
About Big Cypress Capital’s Headwaters Strategic Operator Platform
Based in Naples, FL, Big Cypress Capital is an emerging investment management firm. Big Cypress Capital’s Headwaters Strategic Operator Platform focuses on cultivating capital partnerships with real estate operators and institutional JV partners that result in long-term value creation within their platforms. The Headwaters Strategic Operator Platform closed its initial series of LP investments in 2018 and its initial Co-GP investments with institutional JV partners in 2020. Please visit bigcypresscap.com for more information.