Lincoln JV Buys Mixed-Use Asset in Charlotte
The new ownership is evaluating repositioning options for this landmark property.
Lincoln Property Co., Vision Ventures and Hornets Sports & Entertainment have formed a joint venture partnership for the acquisition of Queen City Quarter, a 304,772-square-foot property with mixed-use design in Uptown Charlotte, N.C. Deutsche Bank sold the asset in a transaction brokered by CBRE.
Queen City Quarter is at 210 E. Trade St. in the city’s central business district, close to Bank of America Stadium and Charlotte Convention Center. Charlotte Douglas International Airport is 6 miles away.
The 2008-built complex occupies a 3-acre block and consists of multiple connected structures rising three to four stories at the base and a 22-story tower. The property features 264,323 square feet of retail space and 40,449 square feet of office space, as well as a four-story parking structure with 989 spaces. The high-rise component includes AC Hotel Charlotte City Center, Residence Inn by Marriott Charlotte City Center and Nuvolé Rooftop TwentyTwo, a lounge located at the 22nd floor.
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The buyers are evaluating options to reposition the complex. Hornets Sports & Entertainment owns and operates several major sports venues across Charlotte, including the nearby Spectrum Center, as well as Charlotte Hornets.
The acquisition brings a former NBA All-Star fan destination to Hornets’ portfolio. The venue hosted notable entertainment events including the NBA Crossover, Charlotte Hornets’ rebranding celebration and Carolina Panthers’ pep rally leading up to Super Bowl 50.
The transaction also marks Vision Ventures’ return to the asset, which it previously owned alongside Mount Vernon Asset Management. Occupancy at the property, formerly known as the EpiCentre, increased from about 50 percent to 95 percent during Vision’s tenure, between 2010 and 2014, according to the joint venture.
From pandemic setbacks to a new identity
Vision sold the building to CIM Group for $130.5 million in 2014. At the time, the California-based owner received an $85 million acquisition loan originated by Citibank. The mortgage later entered a CMBS securitization, where Deutsche Bank served as trustee.
However, later on, North Carolina’s pandemic-related restrictions reduced foot traffic and contributed to widespread business closures at the property. The building also deteriorated and needed significant repairs.
CIM Group missed the 2021 maturity date and defaulted on the loan. Back then, CBRE’s Managing Director Sabrina Jones was appointed as receiver for the mixed-use complex that was 63 percent vacant, while CBRE served as property manager and leasing agent, according to The Charlotte Observer.
In 2022, Deutsche Bank acquired the asset through a foreclosure auction by placing a sole bid of $95 million. Later that year, CBRE rebranded the asset as Queen City Quarter and spearheaded a major repositioning and renovation program aimed at turning the property into a broader entertainment destination.
Earlier this year, CBRE marketed the property for sale and ownership shifted again to the current joint venture group. The firm’s Patrick Gildea, Matt Smith, Adam Russ and Erin Varol brokered the transaction.
Office and mixed-use investments on the rise in Charlotte
The Queen City Quarter deal adds to a string of recent property sales in Charlotte, underscoring investor interest in the city’s established mixed-use districts.
In one of the transactions, Corebridge Real Estate Investors and Crestlight Capital acquired two office buildings anchoring The Station at LoSo, a 15-acre, mixed use development taking shape within Charlotte’s Lower South End submarket. The assets changed hands for nearly $92 million.
But the Queen City’s largest office deal this year so far was Cousins Properties’ $317.5 million purchase of 300 South Tyron. The 638,000-square-foot building rises in the city’s Uptown.
Investments involving the mixed-use properties include Hines’ $170 million acquisition of the Design Center of the Carolinas. The South End complex includes nine buildings with retail and creative office space.
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