Childress Klein JV Secures $50M for Charlotte Retail Property

Childress Klein and Ascentris have obtained a $50 million loan for Waverly, a 218,657-square-foot shopping center in Charlotte, N.C., according to Yardi Matrix data. Bank of America issued the note.

Previous debt consisted of a $42 million loan provided by Regions Bank in 2018, the same source shows. Ascentris acquired a stake in the property that same year. The shopping center had opened in 2017.

Located at 7404 Waverly Walk Ave., the retail property is part of a 90-acre mixed-use development that also includes a hotel, medical and office spaces, as well as a residential component. Waverly is about 13 miles southeast of downtown Charlotte, less than 1 mile away from Interstate 485.

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A Whole Foods store anchors the shopping center. Its roster also includes tenants such as Ulta Beauty, Athleta, Pet People and Plant House, among others.

Charlotte’s strong retail fundamentals

Charlotte’s retail vacancy clocked in at 3.8 percent in September, up 40 basis points year-over-year, according to a Cushman & Wakefield report. The market reflected broader retail trends, as the national index was also up 50 basis points compared to last year, reaching 5.8 percent in September.

The third quarter witnessed a 6,202-square-foot negative retail absorption across the metro, a stark contrast to the 303,155 square feet of positive absorption recorded during the previous three-month period, the same source reveals. In fact, Charlotte had the largest absorption in the U.S. during the second quarter.

Meanwhile, retail rents ticked up 5.9 percent year-over-year, landing at $26.41 per square foot across the market. Not only was the metro’s premium above the U.S. average of $25.01 per square foot in September, but Charlotte’s rate also hiked faster than the average national rent, which only went up 1.8 percent over the year.