Acquisition of 4001 Performance Road, long-term lease to RGA Enterprises
October 2, 2017
Trinity Capital Advisors acquires 4001 Performance Road, signs long-term lease to RGA Enterprises
Trinity Capital Advisors is pleased to announce the acquisition of 4001 Performance Road, an industrial facility in Charlotte, North Carolina. The highly functional asset consists of one warehouse building, totaling approximately 178,000 SF and a small 9,000 SF office outbuilding.
The property offers good visibility from I-85 near the Sam Wilson Road exit, one mile from the I-85 / I-485 intersection, and provides great access to the most important arterials and industrial demand drivers in the region including: the I-485 beltline, I-77, and Charlotte-Douglas International Airport.
In conjunction with the acquisition of the fully vacant industrial facility, TCA entered a long-term lease agreement with RGA Enterprises, Inc., a contract packaging manufacturer of low viscosity household cleaners for retail distribution. RGA will be consolidating out of multiple locations around Charlotte and upon taking occupancy in early 2018, 4001 Performance Road will be the tenant’s sole production and distribution facility.
As part of the transaction, TCA plans to make substantial enhancements to the project to modernize the asset’s base building systems while also increasing utility capacity to suit the tenants’ bottling and distribution activities.
“TCA is pleased to help RGA achieve its growth objectives in the most capital efficient way possible,” said Wes McAdams, a principal at the firm. “This transaction is a prime example of how our solution-oriented approach to value add real estate investing generates superior risk-adjusted returns.
“Prior to closing the acquisition, TCA de-risked the transaction by entering into a lease agreement with RGA and placing it into escrow, while at the same time developing a fully-vetted capital budget to reposition the asset, thus providing a high degree of visibility on both the revenue and expense sides of the ledger.”
This transaction marks the third industrial acquisition to date completed by TCA in partnership with SilverCap Partners.
About Trinity Capital Advisors
Trinity Capital Advisors focuses on the acquisition and development of institutional quality commercial real estate in the southeastern United States. The firm has invested over $2.0 billion acquiring and developing over 13 million square feet of the most successful workplace real estate projects in North Carolina, South Carolina, Tennessee, and Florida, including CBD office towers, industrial portfolios, suburban office parks, and mixed use developments. Investments are capitalized through various Trinity Capital investment vehicles and partnerships with some of the country’s top institutional investors.
About SilverCap Partners
SilverCap Partners is a real estate private equity firm focused on the Southeastern United States. The firm’s expertise crosses multiple property sectors with a predominant focus on office, retail, and residential investments. SilverCap places a priority on opportunities where a combination of capital and operator expertise can serve as a positive catalyst for future value.