Centene Campus University Research Park

[JHart]

32 minutes ago, KJHburg said:

I guess the good about this is that Centene hired 700 people locally and is looking for 200 more and won't get a dollar of incentives for it. 

What makes you say that they won't get paid? I'm looking at the JDIG report when they were awarded. Target jobs: 3,237 but only 548 required as a minimum, I believe they've met their threshold. Then because it was a "Transformative Project" they were allowed to award a higher percentage of withheld taxes and a longer grant term. 

The state of NC essentially sees this as 700 people hired but can only collect 25% of the normal taxes over the next 39 years. Woohoo 700 $25k jobs for the state!! Great job ED team!

[SydneycartonII]

This stinks…
 

https://www.charlotteobserver.com/news/business/article264664104.html

 

 

Edited August 19, 2022 by SydneycartonII

[Blue_Devil]

4 hours ago, CLT2014 said:

Centene got a new CEO in late March... as soon as she took over the "Wow this campus is going to be amazing and we're going to have 6,000 people someday" type of messaging stopped. Within 30 days she made a clear statement that she planned to SIGNIFICANTLY cut back on Centene's office footprint nationwide.... then they canceled a building expansion in St. Louis shortly after.... yet people in Charlotte thought we were immune even though Sarah London is never quoted being excited about the Charlotte campus like the old CEO who was a major booster. The writing was so clearly on the wall.

It probably took a few months for the teams she had re-evaluating the campus to finish their report, deliver options for what to do with the campus, the CEO to secure board of directors approvals, the media communications plan to be announced, et.... She actually covered a lot in her first 5 months and the coincidence this announcement coincides with the close delivery of the campus probably has more to do with the timing of the new CEO coming to power versus the campus construction progress itself. 

The old CEO dying was a huge blow. This would have turned out even bigger

[rancenc]

I might be taking a "minority" view in this recent announcement, but I personally believe this might be a long term positive for the region.  Reading on Centene's continued legal and financial challenges, I think this announcement only reinforces the fact that the company is not doing well financially.  Having a brand new corporate campus could be a magnet for a new lucrative, long term corporate commitment to the Charlotte metro area........let's see!!!

Edited August 19, 2022 by rancenc

[KJHburg]

Here is guess of someone local who might would buy this building (at a discount) and move people into it.  Wells Fargo.  They lease 350,000 sq ft of space in the University area in 2 locations outside their 2 M sq ft office on WT Harris Blvd.  Banks like to own space and they have shifted so much to Wells Fargo owned buildings uptown.  

and this is not the first time something like this has happened in Charlotte and in the University area.  A Savings and Loan from California (I think at the time called Home Savings and Loan) built a huge building in the University Research park for a large office but never occupied it.  That building is called Cambridge Corporate Center now and has multiple tenants including Charlotte 311.  The building was built in 1990 not as large but still  a new building never occupied.  Of course there is the huge former IBM campus that is home to multiple companies now called Innovation Park.   And this building was 1.76 M sq ft and now is basically all leased ironically with a large Wells Fargo office.  https://accessopartners.com/property/innovation-park-8501/

https://www.loopnet.com/Listing/10101-Claude-Freeman-Dr-Charlotte-NC/20994645/    Cambridge Corporate Center 

I do think in the end this building will attract someone and maybe in short order.  I would offer 75 cents on the dollar spent to start off and I think it was $660 M to build or so.  

drive by photos today main 800K sq ft building looks mainly done but the onsite day care center is further behind.  

[tozmervo]

#awkward

 

[JRCLT]

#awkward
 
http://content.invisioncic.com/x329420/monthly_2022_08/SmartSelect_20220819-204058_Instagram.jpg.be351f3b2ca5b362bbd65626b15781d5.jpg

To be fair they still have a local presence lol

[KJHburg]

Here is what the Governor had to say about all this and I will hand it to Centene they flew to Raleigh and Charlotte to tell locals that is was cancelled which is a lot better than many companies when things like happen.

https://www.bizjournals.com/charlotte/news/2022/08/19/gov-roy-cooper-centene-east-coast-hub-real-estate.html

from a Q and A with the Governor:    (emphasis mine) 

""No state or local incentives have been paid out. What do you take from that? In other words, is that the right structure and did you make the right offer to Centene?

Yes, we did. I think it’s important to note that most of our incentives are on the back end, they are performance-based. You have to create the jobs you say you’re going to create, at at least the salary that you say you’re going to pay. And you don’t get credit for that until it happens. So, no incentives have been paid here. And I think these performance-based incentives are the right way for us to approach this in getting better paying jobs for our state.

And did you or anyone make any attempt to change their minds?

First, I think it’s important to know, it’s clear that this decision had nothing to do with Charlotte and North Carolina and everything to do with Centene’s radical workforce footprint changes. They told us that their employees were being more productive in a work-from-home environment. And that they more than anything had dictated this change. 

They told us that they would be reducing their real estate footprint about 70% across the country. When you do that, it’s obvious that you don’t need a new $550 million campus that you’ve just built in Charlotte. 

I did question them significantly about this workforce model and how permanent it was. I told them that we’re still coming out of the pandemic. And it may be that they could have second thoughts about this model. 

And I encouraged them to give it a year before making this decision in order to see if this is the kind of model that you know will really work for your company. They had done the analysis. Pandemic or not, I think they were committed to this remote work environment where they’re going to have 90% of their workforce work from home. So, I don’t think that there was any changing their minds about this at that point.""

This is our mega site for this area and should and I think it will get that kind of attention from state EDPNC and CRBA.  

[ArchiCLT]

On 8/19/2022 at 8:42 PM, tozmervo said:

#awkward

 

Well that's ironic, since we lost with an 89th minute goal last night.

[egorham]

On 8/20/2022 at 9:55 AM, KJHburg said:

Here is what the Governor had to say about all this and I will hand it to Centene they flew to Raleigh and Charlotte to tell locals that is was cancelled which is a lot better than many companies when things like happen.

https://www.bizjournals.com/charlotte/news/2022/08/19/gov-roy-cooper-centene-east-coast-hub-real-estate.html

from a Q and A with the Governor:    (emphasis mine) 

""No state or local incentives have been paid out. What do you take from that? In other words, is that the right structure and did you make the right offer to Centene?

Yes, we did. I think it’s important to note that most of our incentives are on the back end, they are performance-based. You have to create the jobs you say you’re going to create, at at least the salary that you say you’re going to pay. And you don’t get credit for that until it happens. So, no incentives have been paid here. And I think these performance-based incentives are the right way for us to approach this in getting better paying jobs for our state.

And did you or anyone make any attempt to change their minds?

First, I think it’s important to know, it’s clear that this decision had nothing to do with Charlotte and North Carolina and everything to do with Centene’s radical workforce footprint changes. They told us that their employees were being more productive in a work-from-home environment. And that they more than anything had dictated this change. 

They told us that they would be reducing their real estate footprint about 70% across the country. When you do that, it’s obvious that you don’t need a new $550 million campus that you’ve just built in Charlotte. 

I did question them significantly about this workforce model and how permanent it was. I told them that we’re still coming out of the pandemic. And it may be that they could have second thoughts about this model. 

And I encouraged them to give it a year before making this decision in order to see if this is the kind of model that you know will really work for your company. They had done the analysis. Pandemic or not, I think they were committed to this remote work environment where they’re going to have 90% of their workforce work from home. So, I don’t think that there was any changing their minds about this at that point.""

This is our mega site for this area and should and I think it will get that kind of attention from state EDPNC and CRBA.  

I think the telework model is here to stay, with a lot of companies doing 2-3, 3-2, or similar.  We had similar models with limited availability to employees pre-pandemic; the pandemic just illustrated that it could be rolled out more broadly and not negatively (?) impact performance.  That said, I'm hoping that the site finds a suitor (or suitors) and that it still has the potential to make a big positive impact on that area. 

[midtownclt]

Problems never seem to end for Centene:

NCPA August 26, 2022

The Washington State Attorney General last week announced that Centene would pay the state a whopping $33.3 million for overcharging Medicaid. Attorney General Bob Ferguson called this Medicaid fraud recovery “the second-largest in state history.” The breakdown of settlement: $19 million to the state of Washington, $13.3 million for the federal portion for administration of state Medicaid program, and $1 million to the whistleblower. This happened while there is an ongoing battle between Washington’s Medicaid managed care pharmacy program and pharmacists over Medicaid dispensing fees that are well below the national average. Centene’s settlement with Washington state over fraudulent practices in Medicaid is far from its first. In the last two years, Centene has entered into similar settlements with Mississippi, Kansas, New Hampshire, Ohio, New Mexico, Arkansas, and Illinois.

NCPA

[JRCLT]

Went on a tour of the campus midday today. This amazing building was built with sustainability, human health and well-being in mind. Lots open space outdoors with decks, ponds, outdoor seating areas, typical landscaping and natural light. As this was built in the past few years it was designed with covid in mind, not only just elevators and emergency stairwells are present but also extra cases and escalators were included. All this to provide “multimodal” options to circulate people throughout the building. You’ll see them in the pictures below. Should be finished with the interior in December 2022 and finish landscaping with the main outdoor amenities area being the courtyard in February 2023. Great building, lots of great architecture and engineering went into this building. The construction company Clayco, other subsidiaries (design - LJC), and partners. put a lot of thought into reducing carbon footprint and incorporating life cycle analysis to reduce environmental impacts. They also talked about our canopy and how the buildings footprint was selectively cut and instead clear cutting the building was nestled into the trees and the hillside to sort of blend in with nature and not greatly disrupt the canopy which they noted Charlotte is so proud of. Too bad Centene Corp. didn’t move into it, but whoever does it’s a great office space with fitness center, great outdoor space, kitchen, and other great amenities. Precast parking is nicely wrapped and cool canopy in the entrance!

Anyways, here some of the pictures I took:

[KJHburg]

^^ excellent photos and I stand by my prediction this entire building will be leased or sold to someone in short order.  I can think of some in market tenants that would be perfect for it and I know it will appeal to some out of town tenants as well that might be looking for an existing building as this is rare in the commercial world to have a brand new building ready to occupy anywhere of this size.  

[Hornets]

I still think Wells Fargo swoops in, and claims this Estate!

[KJHburg]

28 minutes ago, Hornets said:

I still think Wells Fargo swoops in, and claims this Estate!

that is my bet for an "in market tenant" as Wells leases in excess of 200K sq ft in the university area in addition to their massive 2 M sq ft facility on WT Harris Blvd. plus banks like to own their space think BofA, Truist and other Wells owned building uptown.  

[RANYC]

6 hours ago, KJHburg said:

that is my bet for an "in market tenant" as Wells leases in excess of 200K sq ft in the university area in addition to their massive 2 M sq ft facility on WT Harris Blvd. plus banks like to own their space think BofA, Truist and other Wells owned building uptown.  

I hope this gets an out of market tenant and is another chance to continue to diversify the economy.  I want a massive biotech/life sciences firm to lease this for research.

[Poo Diddy]

17 hours ago, JeanClt said:

 

Nice pics!  Really neat to see the canopy.  I helped budget that few years back and the cost was eye opening 

Pretty ballsy to leave that top edge on the railing glass uncovered.  These laminated rail glazing units have a tendency to shatter if struck on the edge.  Can be as simple as someone's ring hitting it.  It's why you see metal "U" caps on most new railings.  They'll likely put one on here when they install the grab rail.

 

[kayman]

On 9/13/2022 at 5:38 AM, RANYC said:

I hope this gets an out of market tenant and is another chance to continue to diversify the economy.  I want a massive biotech/life sciences firm to lease this for research.

That's exactly the type of businesses what we need more of here in Charlotte 

[JRCLT]

That's exactly the type of businesses what we need more of here in Charlotte 

I believe that this building could suit their needs well. Though I’m not in biotech so I wouldn’t know for sure.

[midtownclt]

NCPA September 26, 2022

Yet another state has entered into a settlement agreement with Centene. The latest: Texas had entered into a $165.6 million settlement with Centene for overcharges to the state’s Medicaid program. This is the largest state settlement with Centene to date. This is on the heels of the announcement by the Washington state attorney general that Centene would pay the state $33.3 million for overcharging Medicaid. This happened while there is an ongoing battle between Washington’s Medicaid managed care pharmacy program and pharmacists over Medicaid dispensing fees that are well below the national average. Centene’s settlements with Texas and Washington state over fraudulent practices follow similar settlements with Mississippi, Kansas, New Hampshire, Ohio, New Mexico, Arkansas, and Illinois. Additionally, there are likely several unnamed states that have entered or will enter into a settlement agreement. To date, Centene has paid $475 million to states for Medicaid overcharges. In 2021, it was announced that Centene had put aside $1.25 billion for settlements with states.

NCPA

[Matthew.Brendan]

Giving Wells Fargo a run for the money in sleazy business practices.

[KJHburg]

36 minutes ago, Matthew.Brendan said:

Giving Wells Fargo a run for the money in sleazy business practices.

and Bank of America has had its own problems in the past.  Most of Wells problems ALL originated in California. 

[videtur quam contuor]

15 years ago, casting about to determine where to invest we decided that solid, locally based but nationally recognized companies would be good. Attractive dividends, historic Charlotte legacy, close to us for word of issues that might be price sensitive for the stock and we jumped in. DUK and BAC. Then the collapse of finance in 2008-9 and BAC was a mess. I was at the annual meeting to vote shares when Ken Lewis was voted out as Chairman. Shortly after we sold our BAC shares. It still has not recovered to its mid 50's price from that time.

Then the DUK coal ash embarrassment led to national news and we sold DUK (bought SO). 

Big corporations can have big troubles. I stay mostly with funds now and sleep better.

[KJHburg]

from the St Louis Biz Journal and Centene is dumping a lot of office space there too   

""Real estate firm JLL said Centene, the Clayton health care giant and St. Louis' largest public company, in the third quarter gave back upwards of 750,000 square feet across multiple buildings as it shifts to a work-from-home model.

The report didn't identify all the affected buildings, and JLL said it could not "discuss Centene's efforts." Centene didn't respond to requests for comment.

But JLL said one of the newer buildings Centene "will vacate," its 27-story tower at 7676 Forsyth Blvd., "has leases pending with several tenants."

"As a result, Centene Plaza C is expected to be backfilled by early next year," the report said.""

Good luck with the all from home model hope it works for them.  

when someone finds or sees the marketing brochure on their Charlotte building please post it. 

all I see is this

https://www.commercialcafe.com/commercial-property/us/nc/charlotte/centene-regional-hedquarter/

 

[JRCLT]

from the St Louis Biz Journal and Centene is dumping a lot of office space there too   
""Real estate firm JLL said Centene, the Clayton health care giant and St. Louis' largest public company, in the third quarter gave back upwards of 750,000 square feet across multiple buildings as it shifts to a work-from-home model.
The report didn't identify all the affected buildings, and JLL said it could not "discuss Centene's efforts." Centene didn't respond to requests for comment.
But JLL said one of the newer buildings Centene "will vacate," its 27-story tower at 7676 Forsyth Blvd., "has leases pending with several tenants."
"As a result, Centene Plaza C is expected to be backfilled by early next year," the report said.""
Good luck with the all from home model hope it works for them.  
when someone finds or sees the marketing brochure on their Charlotte building please post it. 
all I see is this
https://www.commercialcafe.com/commercial-property/us/nc/charlotte/centene-regional-hedquarter/
 

Something has to budge with all those lawsuits