Park Abbey

Transaction Summary

This 5-story, 111,436 SF property sits on a 3.54-acre site at the southwest corner of Park Road and Abbey Place in Charlotte’s Montford Park submarket. Park Abbey provided Dilweg with a unique value-add opportunity to capture tenant demand in the quickly improving submarket by serving as a moderate-cost alternative to competitive assets in the SouthPark and Uptown submarkets. At the time of acquisition in 2007, the property was 80% leased and in need of various capital improvements.

Property Highlights & Value Enhancement

Between 2008 and 2011, 66% of the buildings rent roll expired and occupancy fell to 30%. Dilweg never lost sight of their original capital improvement plan and continued to renovate the lobby, bathrooms, and interior corridors.

“We have been ecstatic with the performance of Park Abbey over the last several years and look forward to witnessing the next phase of life for the property.”

Anthony Dilweg
Chairman & CEO

By The Numbers

Strategy & Execution

Despite the loss of tenancy and fighting through the Great Recession, Dilweg came out strong on the other side for its investors. Once the economy rebounded, Dilweg leased the building back up to 97% while increasing the effective rental rate to $19 PSF, $4 PSF higher than at the time of acquisition. Dilweg was able to increase the NOI 32% and sell the asset for an overall 13.6% IRR to investors.