ABOUT US

ABOUT US

OUR MISSION

At CPG, our mission is to be of service to all of our constituencies. To that end, our goal is to serve:


OUR INVESTORS

by delivering superior, risk-adjusted returns

OUR TENANTS

by providing attractive, well-maintained and functional business environments

OUR LENDERS

by faithfully performing our financial obligations

OUR COMMUNITIES

by providing high demand facilities to house job-creating businesses, and improving the economic conditions of the cities and neighborhoods where we maintain investments
Crown Property Group (“CPG”) is a real estate investment firm that acquires and manages multi-tenant flex and industrial properties in dynamic Southeastern areas. We strive to deliver superior risk-adjusted returns by limiting our focus to properties that exhibit the following characteristics:
  • Vacancy hedge via multiple tenants
  • Solid in-fill locations
  • Proven occupancy and performance history
  • General purpose, low finish space
  • Ability to purchase below replacement cost
  • Attractive initial yields
  • Potential to add value through improved management, leasing and economics

ABOUT US

A Disciplined Approach to Asset Class-Specific Real Estate Investment

CPG is entirely focused on multi-tenant flex and industrial property in the Charlotte metropolitan area. Why? Because we see a confluence of factors that we believe create superior investment opportunities for this specific asset class versus the alternatives. Those factors include such items as vacancy risk mitigation, barriers to entry, quicker upside achievement and limited on-going capital expenses. The specific advantages we see in this product type which allow us to leverage superior returns for us and our investors are:

  • Ability to Buy Below Replacement Cost

    Current market conditions allow us to buy proven, in-fill properties at 20% - 50% discounts to replacement cost, with none of the risks of speculative new development.

  • Diminishing Supply

    Two trends continue to reduce the supply of competitive properties, inverse to the increasing demand created by Charlotte’s rapid ongoing growth – the continued conversion of “for lease” space to “for sale” industrial condominiums, and the rezoning of various areas of the city to higher uses, leading to the demolition of existing product.

  • New Construction is Unlikely

    Current construction costs, and the cost burdens created by new development standards, make new development unfeasible based on current market rents.  This allows the focused operator to better forecast absorption and rent trends without having to factor the impact of new construction.

  • Short Term Leases

    Smaller unit sizes typically are leased on a shorter term basis and with more frequent rent adjustments, allowing rents to be increased in response to improving market conditions much more rapidly than larger spaces.

  • Management Intensity

    Numerous tenants and shorter term leases require a “hands on” management approach for successful property operations and to create value over time.  Most investors lack the needed expertise and focus to efficiently manage and market this product type.

  • Sub-Institutional Size

    Many of these properties are smaller than the size required by institutional investors with their lower yield thresholds, creating the opportunity to capture improved initial returns.

  • Risk Protection

    Lenders and investors historically like the product as it provides a hedge against vacancy risk versus single tenant properties.

  • Low Upfit Costs

    Due to the low percentage of office space in each unit, upfit costs are typically minimal, decreasing the amount of capital required to re-tenant spaces.

  • Lack of Information

    Due to small unit sizes, lease transactions for this type of property are seldom tracked by commercial real estate research providers, who also lump this product type in with unrelated industrial asset classes in their market reports.  This dynamic allows the astute operator with real-time market knowledge to capitalize on less-recognized market opportunities.