Crow Holdings to Build Charlotte-Area Industrial Facility

The Oaks Logistics Center development site. Image via Google Earth

Crow Holdings answers the ongoing call for premier industrial space in metropolitan Charlotte, N.C., with plans for the development of The Oaks Logistics Center, as first reported by Charlotte Business Journal. The speculative project will encompass more than 470,000 square feet in Belmont, roughly 15 miles west of Charlotte’s central business district.

Oaks Logistics will take shape on a 46-acre site near Interstate 85, along a portion of Hickory Grove Road that will be renamed Crawford Oaks Drive. During a meeting on December 5, 2022, the Belmont City Council helped pave the way for the project’s next step, unanimously approving the development plan as well as a zoning request for two parcels and a petition for contiguous annexation.

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Oaks Logistics will cater to the needs of the Class A industrial tenant. The warehouse was deigned to feature a clear height of 36 feet and ESFR, as well as ample auto and trailer parking accommodations. Additionally, the vision for Oaks Logistics includes the incorporation of 2,000 square feet of speculative office space.

Crow has tapped Avison Young to market the development; according to the brokerage company’s website, Oaks Logistics will be available for occupancy later in 2023.

No prelease, no problem

In the current development climate, building an industrial facility sans a tenant commitment in place in suburban Charlotte doesn’t pose a great deal of risk. In the fourth quarter of 2022, the metro’s industrial market recorded 2 million square feet of positive net absorption, according to a recent report from Savills. Additionally, average asking rental rates jumped 17.7 percent year-over-year.

Like every other market in the U.S., Charlotte is bracing for the consequences of increasing interest rates and mounting economic uncertainty. However, the metro’s industrial sector is poised to weather any potential storms. “Charlotte poses as a premier Sunbelt destination with connectivity to the ports of Charleston and Savannah, which have been gaining market share from West Coast ports,” according to the Savills report. “The relative affordability of Charlotte compared with other major Sunbelt cities will continue to support growth in demand.

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While Crow has not disclosed the development cost of Oaks Logistics or the financing source for the project, the real estate investment and development firm is not at a loss for funds. In March, the firm completed the final closing of Crow Holdings Development Opportunities I LP, reaching its hard cap of $750 million in commitments for a total of approximately $1.5 billion in leveraged capitalization for investment in the U.S. logistics and housing sectors.

Additionally, in August 2021, the company formed a joint venture partnership with Abu Dhabi-based Mubadala Investment Co. to develop roughly $1 billion in Class A industrial product in leading U.S. markets.