The EpiCentre is 94% occupied, and its restaurant tenants generate 70% of its rental revenue, according to listing materials.
Will Boye
Senior Staff Writer- Charlotte Business Journal
The EpiCentre in uptown Charlotte is for sale.
The Dallas office of commercial real estate firm HFF Inc. is marketing the 305,000-square-foot complex for sale on behalf of its owners. The property features 255,512 square feet of retail space and 49,336 square feet of office space and is 94% occupied, according to listing materials.
HFF has not specified an asking price for the EpiCentre, but a refinancing last year indicates the project is worth at least $50 million.
Tenants include Gold’s Gym, Studio Movie Grill, Strike City, CVS and 16 restaurants. The restaurant tenants represent 70% of the property’s rental revenue and are generating $475 per square foot in sales, according to HFF.
According to the offering, a new owner could potentially grow its net operating income at the EpiCentre through additional advertising (digital signs, naming rights, garage signs), specialty leasing (carts and kiosks), special event hosting and parking revenue growth. HFF also notes most leases at the EpiCentre have provisions for percentage rent, which give the landlord a share of tenant sales beyond a specified sales threshold.
The EpiCentre is owned by an group headed locally by Vision Ventures and Mount Vernon Asset Management and backed by majority investor The Baupost Group. The group won control of the complex in 2012 after buying its debt in late 2010 and then working through more than a year of bankruptcy proceedings.
Will Boye covers commercial real estate and law firms for the Charlotte Business Journal.
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