Centene Campus University Research Park

[KJHburg]

1 hour ago, J-Rob said:

The optimist in me hopes the veiled marketing means something is already in the works, lol. I thought it previously had a Governor Hunt address (even internally to Centene, but maybe I am wrong about that). I am surprised it is marketed with a Centene Court address. 

I know right that is why I could not find it but I was also looking for office buildings for sale in Charlotte and it still did not come up.  

[KJHburg]

this stunning brand new never-occupied building is getting some interest.   In the Charlotte Ledger email today there was this talking about the interest:

""There’s no official word on who might be interested, but brokers say that word on the grapevine is that whoever takes the space will be at the “Vanguard” of having desirable and modern office property, wink-wink.""

I have always thought it would be an in-market tenant.      This could be very exciting news! 

[KJHburg]

walked by the Centene Campus building that hopefully will have a new occupant soon.  This is one nice building and probably the nicest office building built in Charlotte in the last few years.  It is nestled by the creek on a heavily wooded site along with a free-standing day care center or what could become one.  In a few weeks, this view from the greenway will be obscured by all the trees.   the first couple photos from Gov. Hunt Drive and the rest from the greenway and they even built a greenway connection that is not open now to the campus.  This building is massive at 800,000 sq ft but has 2 wings that are connected.  

[QCxpat]

23 hours ago, KJHburg said:

walked by the Centene Campus building that hopefully will have a new occupant soon.  This is one nice building and probably the nicest office building built in Charlotte in the last few years.  It is nestled by the creek on a heavily wooded site along with a free-standing day care center or what could become one.  In a few weeks, this view from the greenway will be obscured by all the trees.   the first couple photos from Gov. Hunt Drive and the rest from the greenway and they even built a greenway connection that is not open now to the campus.  This building is massive at 800,000 sq ft but has 2 wings that are connected.  

Today's CBJ "Centene's University City Property draws interest from potential buyers, sources say" by  Elise Franco & Erik Spanberg

Excerpts:  "The nearly completed, massive office building in University City started by Centene Corp. (NYSE: CNC) before the company abandoned plans for an East Coast headquarters in Charlotte is attracting attention from prospective buyers, according to several sources in the commercial real estate industry.  The 800,000-square-foot building at 1030 Centene Court is nearing completion and being marketed by Cushman & Wakefield.  The building was expected to be part of a multiple building campus spanning 80 acres that would house more than 6,000 Centene employees before the health-care company dropped the project in August 2022."  "Cushman officials have remained tight-lipped since the company began marketing the property."

"Several local industry sources confirmed they have heard a large, single-user tenant is interested in buying the office building from Clayton, Missouri-based Centene.  These sources declined to speculate, on the record, who that potential buyer might be.  CBJ also learned that a multifamily developer with a presence in Charlotte has expressed interest in the undeveloped land on the site.  Any change for the property's use beyond office would likely require a rezoning."

"Tracy Dodson, the Assistant City Manager in charge of economic development, told CBJ she has been in regular contact with Centene and Cushman."  “My incentive is doing anything I can do to help Centene best position this building,” she said.  "Dodson confirmed she has heard there is interest from a prospective buyer but she does not know who the buyer is.  From the city’s perspective, the focus is on helping with zoning and permitting and other possible adjustments to help with the final details of getting the building finished, she added."

"Chuck McShane, CoStar Director of Market Analytics for the Carolinas, said filling a vacancy of that size would cut the University submarket's office vacancy rate by a third, dropping it to about 17% from 25%.  McShane said it would also impact the city's overall vacancy rate, just less dramatically.  The Charlotte MSA's now sits at about 14% vacant, according to CoStar data."  ""That’s a major chunk of that submarket and one that’s struggled with high vacancy rates for a while," he said.  "Filling that space would definitely be a confidence booster in the submarket."  "McShane said securing a tenant there would also go a long way in showing others that Charlotte is still a desirable market for large users."  ...  "There are fewer larger tenants out there now, so landing one would certainly prove Charlotte is still where those companies want to be located."

Image - Centene Corp.

Link:  https://www.bizjournals.com/charlotte/news/2024/03/04/centene-single-user-tenant-buyer-rumors.html

Edited March 4 by QCxpat

[J-Rob]

Is there any chance this could draw a relocation for Vanguard (if it is Vanguard)? While unlikely, I can't help but ask the question, lol. I mean, this seems nicer (by far) than their other campuses.

[KJHburg]

13 minutes ago, J-Rob said:

Is there any chance this could draw a relocation for Vanguard (if it is Vanguard)? While unlikely, I can't help but ask the question, lol. I mean, this seems nicer (by far) than their other campuses.

I doubt it BUT  I heard they will be getting or have gotten a new CEO so who knows?  their campus is Malvern PA is 13 building spread way out I mean it looks like you would have to drive from some buildings to another and that property looks hemmed in.

in terms of the vacant land Centene owns across and down the street next to Electrolux I think that could be sold and developed as a mixed use center. 

But it is exciting that someone or people maybe interested in the Centene building.  

[J-Rob]

Vanguard officially bought Centene campus. This is super exciting in my opinion. Hopefully Vanguard continues to grow into the space.

Also of note, Centene apparently still owns about 50 acres, but sold ~90 acres to Vanguard today as part of the overall campus.

https://www.bizjournals.com/charlotte/news/2024/04/02/vanguard-centene-campus-university-office.html

[Rickybobby]

11 minutes ago, J-Rob said:

Vanguard officially bought Centene campus. This is super exciting in my opinion. Hopefully Vanguard continues to grow into the space.

Also of note, Centene apparently still owns about 50 acres, but sold ~90 acres to Vanguard today as part of the overall campus.

https://www.bizjournals.com/charlotte/news/2024/04/02/vanguard-centene-campus-university-office.html

Beat me to it! My wife just got an email about the move and I was certain it had to be this space! 

[InSouthPark]

21 minutes ago, J-Rob said:

Vanguard officially bought Centene campus. This is super exciting in my opinion. Hopefully Vanguard continues to grow into the space.

Also of note, Centene apparently still owns about 50 acres, but sold ~90 acres to Vanguard today as part of the overall campus.

https://www.bizjournals.com/charlotte/news/2024/04/02/vanguard-centene-campus-university-office.html

Good for the class A+ space to get filled and open up some smaller Class A- space to open up. 

Sucks for anyone that had an easy commute to their current offices...lol 

[KJHburg]

17 hours ago, J-Rob said:

Vanguard officially bought Centene campus. This is super exciting in my opinion. Hopefully Vanguard continues to grow into the space.

Also of note, Centene apparently still owns about 50 acres, but sold ~90 acres to Vanguard today as part of the overall campus.

https://www.bizjournals.com/charlotte/news/2024/04/02/vanguard-centene-campus-university-office.html

this is FANTASTIC news and will ripple across the country in a positive way for Charlotte.   (Large office campus is taken off the market And I have reasons to believe it will be even more jobs for this area and Vanguard has a new CEO now that who may not be as tied to a Malvern suburban Philadelphia HQ.   Their HQ there is in 13 buildings some so far apart you  have to drive.  This has made my day and I am down in the Lowcountry! 

as for those 50 other acres I think those are across the street and not actually adjacent to this property.  

from the above referenced article:

""Chuck McShane, CoStar's director of market analytics for the Carolinas, said the move will have a significant impact in the University submarket —dropping vacancy from 24% to 18% — as well as across the entire Charlotte MSA. The city-wide vacancy rate is currently at about 14%, according to the latest CoStar data.

"This is the biggest office space takedown since before the pandemic ... It’s a landmark office move," he said. "I think it certainly shows that major companies like Vanguard are interested in consolidating here and willing to place longer-term bets on the Charlotte market."""

and Vanguard does not lease 700K sq ft in Charlotte now I estimate it is about 400-450K sq ft so they are stepping up and expanding with this purchase.  

Edited April 3 by KJHburg

[KJHburg]

the other 50 acre tract is across between the Electrolux HQ and Duke Energy Data center off David Taylor Drive.  So this property is not even adjacent or even really across from the building.  

[KJHburg]

Charlotte Ledger and WFAE are saying the purchase price was $117 Million or $167 a per square a relative bargain!  I knew someone would get a steal.

NEWS UPDATES FOR APRIL 2024 | WFAE 90.7 - Charlotte's NPR News Source

[turbocraig]

1 hour ago, KJHburg said:

Charlotte Ledger and WFAE are saying the purchase price was $117 Million or $167 a per square a relative bargain!  I knew someone would get a steal.

NEWS UPDATES FOR APRIL 2024 | WFAE 90.7 - Charlotte's NPR News Source

“The property included 700-square-feet of brand new office space on almost 100 acres, all of which sat empty.  Vanguard says it will consolidate its 2,400 regional employees at the new building next year.”

Now THAT’S dense.  

[KJHburg]

Getting lots of national notice like I thought.

Vanguard Pays $117M for Charlotte Office Development (therealdeal.com)

Vanguard Buys New Campus in Charlotte | ThinkAdvisor

 

[Hornets]

Glad Vanguard snatched this up.  Can't lie though.  I really, really thought Wells Fargo would end up with this!

[KJHburg]

Here is a good story in a national publication about the Vanguard purchase with additional details where one division of Vanguard is "financing" it for the other division.  Basically, I would guess having what would have been going to office space rent to pay back the "internal loan" for this building.    

Vanguard Buys Former Centene Campus for $117M - Commercial Property Executive (commercialsearch.com)

[CarolinaCrown]

 

On 4/2/2024 at 8:15 PM, KJHburg said:

this is FANTASTIC news and will ripple across the country in a positive way for Charlotte.   (Large office campus is taken off the market And I have reasons to believe it will be even more jobs for this area and Vanguard has a new CEO now that who may not be as tied to a Malvern suburban Philadelphia HQ.   Their HQ there is in 13 buildings some so far apart you  have to drive.  This has made my day and I am down in the Lowcountry! 

as for those 50 other acres I think those are across the street and not actually adjacent to this property.  

from the above referenced article:

""Chuck McShane, CoStar's director of market analytics for the Carolinas, said the move will have a significant impact in the University submarket —dropping vacancy from 24% to 18% — as well as across the entire Charlotte MSA. The city-wide vacancy rate is currently at about 14%, according to the latest CoStar data.

"This is the biggest office space takedown since before the pandemic ... It’s a landmark office move," he said. "I think it certainly shows that major companies like Vanguard are interested in consolidating here and willing to place longer-term bets on the Charlotte market."""

and Vanguard does not lease 700K sq ft in Charlotte now I estimate it is about 400-450K sq ft so they are stepping up and expanding with this purchase.  

Dumb question, but if they're already here locally will their current office space to soon be vacant/hurt vacancy rates?  I see a net gain of 250-300K so I think I just answered my own dumb question!  

[KJHburg]

1 minute ago, CarolinaCrown said:

 

Dumb question, but if they're already here locally will their current office space to soon be vacant/hurt vacancy rates?  I see a net gain of 250-300K so I think I just answered my own dumb question!  

Yes, there will be a vacancy over at the Water Ridge office park where they are in at least 3 buildings maybe 4.  But this is a gain of at least 300K sq ft of new space now taken off the market.  So it is a net positive for the entire office market.  

[DJ8hep]

I feel like this thread earned a new title! 

Edited April 13 by DJ8hep

[KJHburg]

10 hours ago, DJ8hep said:

I feel like this thread earned a new title! 

It has if someone can tell me how to change it I would to the Vanguard Campus aka Centene 

[KJHburg]

I was way off wrong!  I said this building would be sold at 25-30% discount off the build cost.

Vanguard bought this building for $117 M and it was reportedly built for $400-500 million.  So even if you take the lower figure of $400 Million Vanguard bought this building for 29 cents on the dollar or at 71% OFF BUILDING COST for a brand new never occupied building.  They bought it for $167 a sq ft and you would be hard-pressed to find any homes in this area now at that price per square foot.  If you are looking for a shrewd investment firm that will protect your money Vanguard is one of those companies.  They came to town in the 1990s I think and started with 100-200 jobs and now they are at 2400 jobs.   No incentives paid either that I know of.   Also, they leased about 400-450K sq ft in Water Ridge Office Park off W Tyvola and maybe another location this is a massive expansion for them.  I have heard rumors of people moving from Malvern PA their HQ but they will have plenty of room to grow here. 

From my greenway and sidewalk walk today and as for the street Centene Ct  I would suggest  The Vanguard Way  as the new street name.   This is the biggest real estate bargain in the Carolinas in years and years.  

smaller building photographed is their proposed day care center.  Look at their private wetland park for their employees.