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In Wrightsville Beach, Office Building Sells For $1.3M

Previously owned by MegaCorp Logistics, the building was purchased Aug. 14 as an investment by Wilmington endocrinologist Ghobad Azizi.

PlayerSpace, a sports management software company, occupies the 4,400-square-foot structure after leasing the space and moving there recently to accommodate the 15-employee firm’s growth.

Having a tenant occupy the entire building “made it an attractive investment for Dr. Azizi,” said Spruill Thompson, senior vice president of Wilmington-based commercial real estate firm Cape Fear Commercial.

Thompson represented MegaCorp Logistics in the sale, while Eian Lundy of Carolina Commercial Investment Properties represented Sonogenic Holdings LLC, the entity managed by Azizi that now owns the building.

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by Carolina Commercial Investment Properties Carolina Commercial Investment Properties No Comments

Locals buy historic commercial property downtown

An entity controlled by Wilmington residents, ER Quiver Family Limited Partnership, bought the historic property from City Market of Wilmington LLC for nearly $1.5 million, according to a deed recorded Tuesday.

The 14,700-square-foot market was built in the 1880s, according to its listing. It has entrances on South Front Street and South Water Street and holds a number of retail tenants, including longtime occupants Barouke Exotic Woods Etc. and clothing store Ropa Etc.

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by Carolina Commercial Investment Properties Carolina Commercial Investment Properties No Comments

Wrightsboro project is first to use new zoning district

Blue Ridge Companies of Greensboro bought about 12 acres in the 2500 block of Castle Hayne Road from Edwin and Nancy Ennis for $3.27 million, according to a deed recorded in December.

The Wrightsboro Commons project, which is expected to include apartments and the replacement and renovation of existing commercial space, is the first in the county to take advantage of one of New Hanover’s new zoning districts, Urban Mixed Use Zoning (UMXZ).

It’s one of eight zoning districts approved by the county Board of Commissioners in July last year.

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by Marlon Weems Marlon Weems No Comments

Wall Street Growing Bearish on Commercial Real Estate

Wall Street analysts like Morgan Stanley think commercial real estate may be the next “Big Short” in the same way housing was. In fact, some hedge funds have begun to place bets on a coming collapse in real estate, reminiscent of the financial crisis. But instead of betting against housing, this time they’re going all in that the  CRE market collapses. The following charts explain why:

A Collapse in Department Store Sales

Although commercial real estate prices are above the highs they set before the housing crisis, malls and retailers haven’t been as fortunate. The reason is that malls rely on big retailers such as J.C. Penney and Macy’s. With falling sales, retailers are closing at the highest rate since the 2008 financial crisis.

Source: Bank of America

2016 Department Store Closings the Highest Since 2008

Most malls depend on at least one big retailer. When an anchor store closes, foot traffic drops, which in turn hurts other retail occupants. According to Morningstar Credit Rating’s estimates, roughly 40% of the loans due this year won’t be paid. Commercial real estate prices have been on the upswing since 2009, but increasing vacancies have caused prices to stagnate.

Source: Credit Suisse

Commercial Real Estate Prices May Have Peaked

New rules came into effect in December requiring banks to hold at least 5% of their loans on their books, which has caused a slowing of loan growth.

A number of retail analysts expect about one-third of  US malls to close in the coming years.

Source: Green Street

But Don’t Throw in the Towel Just Yet…

Remember – analyst calls are only estimates, that could end up being too conservative. For example, if commercial real estate investors become more willing to accept lower returns or if the industry’s need for financing turns out to be lower than estimates, these predictions may be overblown. For example, Blackrock thinks U.S. commercial real estate recovery has room to run.


They see US commercial real estate delivering attractive total returns with interest rates still relatively low. While capital appreciation may slow, Blackrock sees the potential for property managers to add value by upgrading buildings.



by Marlon Weems Marlon Weems No Comments

The Fate of EB-5 Visa Program In Question

Later this month, the EB-5 Immigrant Investor visa program may face extinction unless Congress acts by the deadline. Even if the program survives, proposed changes could affect developers that count on EB-5 investors to fund their projects. The E-5 program is estimated to result, at least in part, in the creation of almost 200,000 jobs in the U.S., bringing in nearly $14 billion from Chinese investors. The possibility of a phase-out has caused Chinese investors to scramble to apply before the April 28 deadline.

Eb-5 Program Dominated by Immigrant Investors From China

According to Bloomberg, uncertainty surrounding the program has sparked a rush among would-be participants eager to fund projects before the deadline.  Chinese investors are estimated to make up as much as 85% of total EB-5 participation. Chinese Dominate the EB-5 Investor Visa ProgramAlthough the Chinese government has tried to prevent investment abroad, EB-5 investments from China totaled $3.8 billion last year.

To have any chance of being renewed, the program must overcome some significant hurdles. In January, several government agencies proposed new regulations for the program. Increasing the minimum EB-5 investment from $500,000 to $1.35 million may be the biggest proposed change. The changes under consideration are carryovers from former President Obama’s administration. Since then, however, President Trump has put a freeze on adopting new government regulations pending review. Comments on the proposed changes are required by April 11.

by Marlon Weems Marlon Weems No Comments

CRE Brokers: Then and Now

CRE brokers have to do so much to stay ahead. Success means staying up on technology, news, not to mention demographic trends.  It’s easy to forget the business hasn’t always been this way. The day-to-day CRE business has seen significant changes, in more ways than you might think.

A Day in the Life of CRE Brokers

As this infographic by Franco Faraudo of Apto Real Estate shows, there is a big difference in how CRE brokers did business in 1997, compared to today’s work routine.

The truth of the matter is that, just to stay ahead, we’ve become practically addicted to our devices. Just think: years ago most CRE brokers drove to the office. With today’s tech advancements like Bluetooth and WiFi, however, vehicles are the office for many of us.

Instead of delivering photos of a property or lease documents by hand (or heaven forbid, sending them via snail mail), we’re able to handle the process in seconds electronically instead of over several days. CRE brokers were once bound to a local clientele. Today social media, email, and Skype allow us to prospect and stay in touch on a global scale.

All in all, aside from way too much email, we think things have improved for the better. Do you agree? Let us know what you think!


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by Carolina Commercial Investment Properties Carolina Commercial Investment Properties No Comments

Hammerheads youth soccer program leases space for indoor practice

The property, at 3132 Kitty Hawk Road in the North Kerr Industrial Park, will be used for indoor soccer practice and some camps, said Mark Briggs, technical director for the Hammerheads youth program and assistant coach for the Hammerheads professional team.

Nearly 3,000 children participate in the youth program, 1,500 in the recreational division, 800 in competitive, 300 in outreach and 150 in the organization’s academy program.

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by Carolina Commercial Investment Properties Carolina Commercial Investment Properties No Comments

Former Lofts at Randall Parkway site sold

Cary-based Solstice Partners LLC and the N.C. Department of Transportation bought three parcels totaling 4 acres at 363, 369 and 375 S. Kerr Ave., P.J. Doherty, a managing partner and broker with Wilmington-based Carolina Commercial Investment Properties, said Tuesday.

Doherty and Bob Lucas, a broker with Wilmington-based Pickett Pointe Properties, represented the sellers during the March 7 transaction totaling $765,000.

The parcels were formerly owned by Wilmington-based B.J’s Construction.

While 3.8 acres was sold to Solstice officials, a 0.2-acre tract is set to close in the coming weeks to NCDOT for $190,000 as right-of-way for the future Kerr Avenue widening project, Doherty said.

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