Print
Real Estate - Commercial

RL Lofts Mixed-use Property Sold For $4.67M

By Johanna Cano, posted Oct 22, 2018
The three-story, mixed-use property built in 2016 was sold to an outside investor last week. (Photo courtesy of Cape Fear Commercial)
RL Lofts, a mixed-use property in Wilmington was sold for $4.67 million to MDB RL Lofts NC, an entity controlled by an investor from New Jersey.

The 23,308-square-foot property was sold by RL MXU I who was represented in the transaction by Paul Loukas, Cape Fear Commercial’s broker-in-charge, according to a news release.

The property at 109 Pier Master Point is a desirable long-term investment for the buyer because it is in a growing submarket that has a master planned community and is backed by a well-respected developer, Loukas said.
 
RL Lofts is in RiverLights, a 1,400-acre community off River Road that is being developed by Newland Real Estate Group.
 
The building is part of the RiverLights community's plans to build 2,700 homes, including townhomes, single-family homes, an age-qualified neighborhood, a 30-acre lake, a mixed-use commercial area, a Marina Village, shops, restaurants a boardwalk, event lawn and trails.

The RiverLights project is expected to be completed in about eight to 10 years.
 
RL Lofts has 8,872 square feet of commercial space on its first floor and 18 apartment units in its second and third floor.
 
Some commercial tenants include Magnolia Café, TowneBank Mortgage and Southern Shores Beer &Wine. It also houses the new home center for Newland Real Estate Group.
 
The property sale was finalized on Oct. 17, a few weeks after the Federal Reserve increased interest rates for the third time this year.
 
Loukas said this interest raise has affected how much investors can invest in properties.
 
“The rising interest rate environment has added another layer of complexity to investment sales,” Loukas said in the news release. “As the market is slowly pushing cap rates higher and applying pressure on valuations, quality assets, like RL Lofts, are countering with rising rents and improving fundamentals.”
 
Since interest rates have risen, the cost of capital has increased, which directly impacts the amount a buyer will pay for a property, he said.
 
“In other words, the higher the interest, the higher the debt service, and the less a buyer will pay for an investment,’ Loukas said.
 
Despite the interest rate environment, RiverLights is still a desirable living community in Wilmington because of its amenities, including its river location, walking paths, open space, fire pits and because residents can go nearby to grab a coffee, have a cocktail or walk over to Smoke on the Water to eat, Loukas said.  
 
All 18 apartments at the RL Lofts are currently leased, he said. 
 
A second mixed-use building, with a similar layout as RL Lofts, but with an additional apartment floor, is planned at RiverLights Marina Village.
Ico insights

INSIGHTS

SPONSORS' CONTENT
Aaeaaqaaaaaaaaidaaaajdhiztrkodm0lte2yjetngrkmy1hotrmltawmdvlmwqyztmymw

Please and Thank You Go a Long Way

Diane Durance - UNCW Center for Innovation and Entrepreneurship
Jim ellis headshot 10311631058

Five Tips on Balancing Convenience and Privacy

Jim Ellis - Signal
Leath 683x10242

Effort is Attractive: Get the Talent

Lisa Leath - Leath HR Group

Trending News

Public Private Partnership Would Add Student Housing At UNCW

Cece Nunn - Nov 19, 2018

Health Care Heroes Award Winners Announced

Staff Reports - Nov 19, 2018

Airports, Roads Expected To Be Busy With Thanksgiving Travelers

Christina Haley O'Neal - Nov 19, 2018

In The Current Issue

Airlie At Wrightsville Sound Plans Progress

The sale of home sites in a new luxury neighborhood in Wilmington near Wrightsville Beach could be launched as early as the spring of next y...


A Rising Interest In Rising Rates

Local and national real estate observers weigh in on what interest rate hikes might do on home buying activity....


Info Junkie: A. Kevin Lackey

Info Junkie Kevin Lackey, business development manager for Brunswick Business & Industry Development, on his tech and app recommendations....

Book On Business

The 2018 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.

Order Your Copy Today!


Galleries

Videos

2018 Power Breakfast - Dishing on the Restaurant Biz
2018 WilmingtonBiz Expo - Keynote Lunch with Eric Dinenberg, Rouse Properties
2017 Health Care Heroes