Strategic Capital Signs Tenant at Charlotte-Area Industrial Project

Strategic Capital Partners has signed Logistics Plus to the lease of an entire building at Rock Hill Commerce Center, the company’s 1 million-square-foot manufacturing and distribution project in metropolitan Charlotte, N.C. Logistics Plus committed to Building B, a nearly 500,000-square-foot facility that’s part of Phase I of the $55 million Rock Hill project.

Located halfway between New York and Miami, Rock Hill occupies an 80-acre former textile mill site roughly 20 miles across the state border from the Charlotte CBD in Rock Hill, S.C. The Sherbert Group provided SCP with approximately $60 million in financing for the multi-phase development, which is a design/build project of Development and Construction Insight LLC.

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With ARCO Construction Co. Inc. at the helm as general contractor, Phase I of Rock Hill delivered in the first quarter of 2022, featuring approximately 800,000 square feet across Building A and Building B. At Building B, sited on nearly 40 acres, Logistics Plus will benefit from such amenities as a 36-foot ceiling height and ample car and trailer parking.

Rock Hill Commerce Center. Image courtesy of Strategic Capital Partners

SCP is relying on Colliers international to serve as leasing agent for Rock Hill. Colliers’ Lawrence Shaw, Rob Speir and Justin Smith represented the company in the lease transaction with Logistics Plus. Jeremy Trotter with Foremost Commercial Real Estate and Henri Gresset with Gresset Commercial Real Estate stood in for Logistics Plus.

Right place, right time

SCP’s Rock Hill development is sprouting up at a time when the Greater Charlotte-area industrial market is in dire need of additional offerings. The metro experienced its lowest vacancy rate on record, just 3.5 percent, in the fourth quarter of 2021, according to a report by Avison Young.

More of the same is on the horizon for the market. “Industrial leasing demand will remain at an all-time high in Charlotte, as existing supply and available land opportunities remain extremely tight,” according to the Avison Young report. “Overall vacancy rates will continue to remain at historically low levels in 2022 despite elevated construction deliveries coming down the pipeline.”

In the fourth quarter, the York County submarket, home to Rock Hill, recorded the most ground-broken projects at 2.4 million square feet. Rock Hill’s Phase II, which will add a 180,000-square-foot facility to the park, is on track to reach completion in September 2022.