Walmart-Occupied Office Building Changes Hands in Charlotte

Three Water Ridge is part of an 11-building office campus. Image courtesy of CBRE

AEW Capital Management has sold a 107,545-square-foot office building in Charlotte, N.C., to Perkins Fund LP. The asset, Three Water Ridge, was fully occupied by Walmart at the time of sale; the retailer has been a tenant at the property since 2015.

AEW sold Three Water Ridge for $15 million, public records show, with the assistance of CBRE‘s Patrick Gildea, Matt Smith, Grayson Hawkins and Robert Hardaway. The property had previously traded in 2016 for $35 million.

Standing five stories tall, Three Water Ridge came online in 1991 and underwent renovations in 2018, CommercialEdge data shows. The property is part of the 11-building Water Ridge Office Park, so tenants have access to three fitness centers, outdoor picnic areas, walking trails, 24/7 security and a tenant lounge, among other amenities.

Located at 2118 Water Ridge Parkway within the I-77 Corridor submarket, the property is close to Billy Graham Parkway and West Tyvola Road, across from the 170-acre City Park master-planned community. Downtown Charlotte is approximately 7 miles northeast, while Charlotte Douglas International Airport is 6 miles away.

Office sales shrink in Charlotte

Only some 1.3 million square feet of office space have traded in Charlotte year-to-date as of September for a total of $179 million, according to a recent CommercialEdge report. The sales volume was three times smaller than the one recorded in the same interval of 2022, when more than 3.9 million square feet changed hands.

Assets sold, on average, for $161 per square foot. The price was nearly half the one recorded in 2022’s first three quarters and 18.7 percent smaller than the national average of $198 per square foot.