Goldman Sachs Sells New Charlotte-Area Mixed-Use Project for $59M
By Mack Burke November 23, 2021 11:37 am
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Denholtz Properties has acquired a newly built mixed-use, residential property with 289 apartments called Vida Kannapolis located in a suburb of Charlotte, N.C., Commercial Observer has learned.
Denholtz bought the property for $59 million from a joint venture between Goldman Sachs Asset Management (GSAM) and Fort Lauderdale, Fla.-based Lansing Melbourne Group (LMG) in an off-market transaction that closed last month.
LMG’s website lists the value of Vida Kannapolis at $57 million.
Goldman Sachs (GS) declined to comment on the transaction. Denholtz Properties and LMG did not respond to inquiries.
Rosewood Realty Group’s Jonathan Brody advised Denholtz in the purchase, while Jacob Vogel, also of Rosewood Realty, brokered the off-market sale on behalf of the Goldman Sachs-led joint venture.
“With the multifamily market in North Carolina on absolute fire, Goldman Sachs simply couldn’t turn down the aggressive prices that our buyers were offering,” Vogel said. “New construction in Charlotte and the surrounding submarkets are trading at an all-time high, and we are very glad to have gotten a deal done. To anyone who is looking to exit on a multifamily asset, there has never been a better time.”
The five-story residential development is located at 210 South Main Street in downtown Kannapolis and includes 300,000 square feet of residential space that was delivered to market in March. It has a fitness center, pool, game room, pet recreation area, roof terrace, bicycle storage and indoor parking.
Vida Kannapolis is one property within a broader, master-planned mixed-use community called Vida in downtown Kannapolis. A few years ago, LMG and GSAM officially teamed up with the City of Kannapolis to break ground on the sprawling community, which will include hundreds of new apartment units, 18,000 square feet of fresh retail space and 36,000 square feet of historic space renovated for retail use, as well as a 400-stall public parking deck in which the city itself has invested, according to LMG’s website.
LMG’s website refers to Vida Kannapolis as the “catalyst” within the master-planned project, which involves the restoration and redevelopment of a smaller, former textile mill town.
In August, LMG broke ground on an asset that will be the newest addition to Vida: 200 Main. The planned seven-story mixed-use development will be situated next to Vida Kannapolis and will feature about 90,000 square feet of combined retail and residential space, with 78 apartments, according to information from the City of Kannapolis. LMG is deploying $21 million into the development of 200 Main.
Denholtz has been trying to expand its holdings in burgeoning markets in North Carolina, according to Rosewood’s Brody. Vida Kannapolis is the second deal Denholtz has closed on in the state, having bought a five-building, roughly 219,000-square-foot industrial park in Greensboro, N.C., called Interstate Commerce Park from CIP Real Estate for $12.1 million in September.
“Denholtz has been trying to enter the North Carolina market for quite some time,” Brody said. “They were looking for the perfect asset to kick-start their portfolio, and I am glad that we were able to provide them with such.”
Mack Burke can be reached at mburke@commercialobserver.com.
