CBRE Arranges $68.3 Million Refinancing for The Nexus and Hub at Waverly in Charlotte
CBRE has arranged a $68.3 million refinancing for The Nexus and Hub at Waverly, two Class A office buildings totaling 312,738 square feet within the 90-acre Waverly mixed-use development in Charlotte, the firm announced Sept. 30.
CBRE's Nate Sittema and Will Chapman arranged the five-year permanent loan on behalf of the borrowers, Childress Klein Properties and Ascentris Real Estate Private Equity. A life insurance company provided the financing.
Loan Terms and Borrowers for The Nexus and Hub at Waverly
The $68.3 million loan is a five-year permanent financing secured by the two office buildings. The loan equates to roughly $218.46 per square foot of collateral based on the combined 312,738 square feet.
Childress Klein Properties and Ascentris Real Estate Private Equity own the buildings as a joint venture. Childress Klein continues to lease and manage both properties. Ascentris announced its acquisition of the buildings as a combined purchase of approximately 312,000 square feet with two free-standing parking structures; at that time, the properties were 77% leased to 13 tenants.
"The Nexus and Hub at Waverly embody the best of suburban office development, with high-quality buildings and a pedestrian-friendly, mixed-use environment that continues to attract office users," said Chapman. "The combination of the properties' quality, strong tenancy and exceptional sponsorship made this a compelling financing opportunity."
Property Details: Two Class A Office Buildings in South Charlotte
The Nexus and Hub are located at 6325 and 6210 Ardrey Kell Road, respectively, in Charlotte's I-485 South office submarket. Both are six-story buildings.
- The Nexus (6325 Ardrey Kell Road): 157,383 square feet, completed in 2019.
- The Hub (6210 Ardrey Kell Road): 155,355 square feet, completed in 2017.
The LEED-certified buildings feature floor-to-ceiling windows, flexible floorplates of approximately 26,000 square feet and structured parking. The buildings benefit from their proximity to Providence Road and Interstate 485. The portfolio has maintained an average occupancy of 96.5% since 2020, according to CBRE.
Waverly Mixed-Use Development in Charlotte
The properties are part of Waverly, a 90-acre mixed-use development in South Charlotte. The development includes 250,000 square feet of retail anchored by Whole Foods Market, more than 40 restaurants, shops, and fitness and wellness offerings. It also contains a 140-room Hilton Garden Inn & Conference Center, the 375-unit Lantower Waverly apartment community, and 140 single-family homes and townhomes.
Tree-lined streets and sidewalks connect the development's uses, creating a pedestrian-oriented environment for office tenants, residents and visitors.
Market Context for Suburban Office Financing
The transaction involves newer, stabilized suburban office space with on-site amenities, financed with five-year permanent debt from a life insurance company. The collateral combines 2017 and 2019 construction, LEED certification, large flexible floorplates, structured parking and access to retail, dining, lodging and housing within the same development.
The portfolio's 96.5% average occupancy since 2020 contrasts with the 77% leased position reported when Ascentris announced its acquisition of the buildings. The refinancing involves two institutional sponsors, Childress Klein Properties and Ascentris Real Estate Private Equity, and was completed amid broader selectivity in office-sector financing.
Sources
CBRE press release, "CBRE Arranges $68.3 Million Refinancing for The Nexus and Hub at Waverly in Charlotte": https://www.cbre.com/press-releases/cbre-arranges-68-3-million-refinancing-for-the-nexus-and-hub-at-waverly-in-charlotte