Queensbridge Collective lands Fortune 500 company
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Queensbridge Collective is two towers. The first apartment building and is currently under construction. Photo: Courtesy of Goettsch Partners
Pacific Life, the Fortune 500 insurance giant, has chosen Charlotte to expand with a new East Coast hub, creating 301 jobs with average six-figure salaries.
Why it matters: The Newport Beach, Calif.-based company's decision to add its third U.S. location in South End — a $12.3 million investment, according to the state — is the latest in an upswing of economic development wins for Charlotte.
- After a pandemic-driven slowdown in business relocations and expansions, companies from Citigroup and AssetMark to SoFi Technologies have announced splashy expansions this year, too.
What they're saying: "Charlotte's firing on all cylinders these days," North Carolina Commerce Secretary Lee Lilley said in a press release. "Our ranking as CNBC's Top State for Business is validated once again with today's announcement."
The intrigue: Pacific Life has signed an 11-year lease at Queensbridge Collective, a two-tower development on the edge of South End and Uptown, bringing the 356,000 rentable square feet of office to more than 85% preleased before vertical construction has even started.
- Pacific Life plans to move into 68,000 square feet across three floors in 2028, when the future 43-story skyscraper is slated to be completed. An apartment tower next door is already under construction.
- The second tower breaks ground this year and will be some of Charlotte's newest and most sought-after office space, with amenities like a fitness and wellness center, an acre of outdoor green space, on-site retail and restaurants, and proximity to the light rail.
- Financing new office construction in the current market is difficult. A spokesperson for Queensbridge's developer told Axios that preleasing above 50% is fundamental. The project cleared that hurdle when it secured Moore & Van Allen as a tenant. The law firm is taking 206,000 square feet across the top nine floors.
- "(MVA) triggered new construction at a time where office towers are not getting capitalized," Michael Smith, CEO of Charlotte Center City Partners, told Axios in a recent interview. "If you look at our competitive cities, there's somewhere between few and none occurring. You have to have new product to win some of these big deals."
What they're saying: Pacific Life's chief financial officer Vibhu Sharma referred to the long-term lease as a strategic investment and a place where their teams can collaborate.
- "This world-class building strengthens our ability to attract top talent, deepen our connections in a leading financial hub, and support our growth ambitions," Sharma said.
- While the high-rise is being built at Morehead and Tryon streets, Pacific Life is leasing interim office space less than a mile away in the central business district, according to Mecklenburg County's press release.
Zoom in: Over the next five years, Pacific Life will hire for actuarial, finance, technology and human resources roles, with an average wage of $177,584.
- Many positions, including tech roles, will not require a college degree, Mecklenburg County noted.
Follow the money: North Carolina awarded a Job Development Investment Grant for the project on Tuesday, agreeing to reimburse up to $5.5 million over 12 years, contingent upon Pacific Life meeting its job-creation and investment targets.
- The expansion is estimated to boost the state's economy by $2.1 billion, according to Gov. Josh Stein's office.
- Mecklenburg County and the city of Charlotte will determine their incentive package for this project at an upcoming public meeting.