Carlson Buys Into Charlotte
Real estate group picks city over Atlanta, Tampa for Southeastern debutby J. Lee Howard, Senior staff writer – Charlotte Business Journal

December 15, 2006—A Minneapolis-based real estate investment company is making its debut in the Southeast by purchasing 1.3 million square feet of local industrial space for $84 million.

With that investment, Carlson Real Estate Co. chose Charlotte over Atlanta and Tampa, Fla., says Matt Van Slooten, company president.

Carlson recently bought three properties here:

• The 11-building CLT Logistics complex, a 571,000-square-foot development off Yorkmont Road at a future realignment of West Boulevard.
  
• Five buildings totaling 488,000 square feet at Chemway Industrial Park near Interstate 85 and Brookshire Boulevard.
• Five buildings totaling 241,000 square feet in South Point Business Park at Interstate 77 and Carowinds Boulevard.

Carlson bought all the properties from San Francisco-based AMB Property Corp.

The local portfolio will be overseen by Carlson Vice President Chris Kirby, who will relocate to Charlotte from a post managing Carlson assets in Phoenix.

Observers view Carlson's local investment as the latest sign of recovery in the Charlotte industrial market after several lean years.

Third-quarter local industrial vacancy was 11.3%, down from 12.5% at the same time a year ago, according to Karnes Research Co.

Rental rates, meanwhile, have been on the rise, hitting $4.27 per square foot at the end of the third quarter, up from $4.21 a year earlier, Karnes' figures show.

That kind of improvement tends to attract outside investors, says Andrew Jenkins, Karnes managing partner.

Even though industrial vacancy remains in the double digits, it's down from 19.2% three years ago, according to Karnes.

In addition to its strong market conditions, Charlotte simply seemed a good fit for Carlson, Van Slooten says.

In Atlanta, he says, the company would have been just one of many industrial real estate players. And the Florida market, with its hurricanes and high property-insurance costs, proved unappealing, he adds.

Carlson officials like the size of the Charlotte market and feel the company can make a mark here, Van Slooten says.

A national team of CB Richard Ellis brokers -- including Ryan Clutter, Anne Johnson and Bryan Crutcher in Charlotte -- represented AMB in sale negotiations with Carlson, which represented itself.

Crutcher and Johnson will handle leasing responsibilities for Carlson at CLT Logistics. Brad Cherry and Pete Pittroff of Keystone Partners will be responsible for leasing at Chemway. John Cashion and Keith Bell of Colliers Pinkard will take care of leasing duties at South Point.

Carlson Real Estate Company is an affiliate of Carlson Companies, parent company of Radisson Hotels, T.G.I.Friday’s Restaurants, and other national and global businesses, and one of America’s largest privately held companies.  Carlson Real Estate Company is dedicated to developing long-term client relationships by operating with integrity and care, and providing innovative and accommodating solutions.  Its portfolio of office and flex/industrial space concentrated in Minnesota and Arizona exceeds 5 million combined square feet.