Winnifred is a one-story retail/office/warehouse building containing approximately 25,543 square feet on three parcels totaling 1.722 acres in Historic South End, one of Charlotte’s most unique and dynamic neighborhoods to live, shop, dine, work, create and relax. Winnifred was the classic covered land play, where it could be effectively positioned for redevelopment. We purchased the asset in Jan 2018 for $5.7M.
The property was in a prime location within walking distance to Uptown Charlotte and only two blocks from the Lynx’s Bland Street Station. Dilweg saw the opportunity to buy well positioned real estate at a low price and took advantage of the resurgence of the surrounding area. At acquisition, Dilweg saw two paths for execution. First, we saw the opportunity to re-tenant the building from a standard tenant base into the next generation of tenants, consistent with the changing character and economics of the submarket. Second, Dilweg saw the opportunity to position the property for sale to a developer. Given the continued increase in land values within this submarket, the sale to a developer proved most effective.
“Winnifred was a unique and attractive opportunity to take advantage of a quickly transforming area.”
Zach Ashton
Acquisitions
In early 2020, Dilweg realized that the best route was redevelopment and began searching for multifamily developers. Due to the plan to sell for development, Dilweg pivoted and began negotiating lease buyouts to get the property ready for the future developers. Dilweg sold the property in October 2021 for $14.3M, $3M more than the original underwriting. The investment IRR was 40.21% and the equity multiple was 3.07x. Amazing results for our investors.