When Washington, D.C., owner and developer Penzance sought to expand its portfolio of warehouses and distribution centers beyond the mid-Atlantic region, it looked to the Charlotte, North Carolina, area.
That's where Penzance bought Axial Southgate 77, a fully leased industrial development in the Charlotte suburb of Rock Hill, South Carolina. Penzance purchased the building from Crescent Communities, the company that developed it, for $32.3 million, according to CoStar data.
"Southgate 77 represents a significant step in Penzance's expansion of its industrial footprint into high-growth Southeast markets," said Bob Bechtel, vice president of investments at Penzance, in a statement.
The sale of the Class A industrial property at 1203 Galleria Blvd., now known as Southgate 77, had a significant impact on both the local market and the broader regional economy, as it exhibited strong investor confidence in and the growth of the Charlotte-Rock Hill industrial corridor, according to CoStar research. The sales price reflected growing demand for institutional-quality industrial property in the area.
"The project's successful lease-up and subsequent sale exemplify the strength of both the Charlotte industrial market and Crescent's broader AXIAL portfolio," said Brendan Pierce, commercial group president at Crescent Communities, in a statement. "As we look ahead, we remain committed to identifying and pursuing similar opportunities across other high-growth markets.”
As a result, the deal earned the project a CoStar Impact Award as judged by professionals in the market.
About the project: Located in Antrim Business Park with immediate access to Interstate 77, the 220,281-square-foot Southgate 77 distribution center was built in 2024. Its anchor tenant is Hangcha Forklifts America, according to CoStar data.
What the judges said: This was a "large-scale acquisition of [an] institutional quality industrial development by a local developer Crescent Communities, which further validates the growing demand for the product type and I-77 growth as a commercial corridor, in addition to being a commuter corridor," said David Morris, director of investment property sales, Trinity Partners.
The deal "reflects strong investor confidence in the greater Charlotte metropolitan area's investment into logistics-oriented infrastructure that strengthens the labor market and provides economic growth and stability," said Paula Saunders, a senior broker at New South Properties.
They made it happen: The Colliers team of Senior Vice President Nolan Ashton, broker Tommy Whitmore, Senior Vice President Rob Speir and Vice President Phoebe Dinga represented the seller. Penzance senior development associate Jack Rushford and Vice President Robert Bechtel represented the buyer.