Patriot Equities

Tire manufacturing operations began on this site in 1966, originally as General Tire, and later as Continental Tire. This 150 acre, 1.7 million square foot - two building complex served as Continental’s North American headquarters.

As a tier-one supplier to the automotive industry, wringing out efficiency in operations was paramount to Continental maintaining market share and profitability. In 2006, due to increasing pressures of competition, the company consolidated this site’s operations to the more efficient, lower labor cost locations of Illinois, Mexico, and Brazil.

Designed, expanded, and operated as a tire manufacturing plant over 40 years, the facility had grown exceptionally large, deep, and highly specialized for this use. Phasing out these operations in order to market it for new uses would take time and leave behind tough “real estate”, practically unusable for anything other than tire manufacturing. In addition, in the mid-1990s, Continental built a separate, modern, 125,000 square foot building on the site that would serve as an ideal North American “user” headquarters. This building would be tough to remarket as it is not located in a typical “office” market setting in Charlotte. The challenge was to find a buyer with the vision to convert these large, functionally obsolete buildings for future reuse, while providing the flexibility for Continental to phase into its long-term warehouse leaseback commitment on the site.

Patriot previously contacted Continental to present its business model. When the time came to market the site, Patriot was referred to Continental’s real estate advisor as a qualified buyer with experience and a successful track record with similar projects. This transaction required Patriot to work closely with the Continental team on a graduated phase-out plan.

The key to a successful transaction was developing a strategy that would harmoniously and economically decommission the tire plant and allow for its redevelopment to a multi-tenant industrial/warehouse use, while reconfiguring Continental’s remaining long-term occupancy in the facility. To address these objectives and meet Continental’s desire for a year-end close, intense focus was required on both sides, as well as open and transparent communication and flexibility.

Patriot acquired the Charlotte site and met Continental’s year-end closing timeline. Continental has a two year phase-out occupancy and decommissioning schedule as it retracts from the manufacturing building into a 10-year leaseback of the tire warehouse within the building. This phase out schedule allows Continental the flexibility to plan a smooth operational transition and decommission the vacated manufacturing space.

This period also allows Patriot the opportunity to plan and time the subdivision and redevelopment of the site which will include creating multiple parcels, selective demolition, modernization of the HVAC and electrical distribution, and improved site and “dock door” access for industrial/warehouse users. This will coincide with a broad marketing campaign to attract tenants from 30,000 to 600,000 square feet to the redeveloped business campus.