Casto credits its competitive edge to its local representatives.

A fully integrated real estate firm, Casto has been servicing the commercial, industrial and residential real estate markets for more than 80 years. The company says it is more than a development company. “For us, it is more than the bottom line,” Casto says. “While we work hard to make sure that each project we undertake is a financial success, we also strive to make sure that our projects are well planned, that our people have good quality of life, that our tenants are happy with the service they receive, and that we work with the communities we enter to make both our project and their community better for the partnership.”

Casto's longevity and experience in the industry makes it one of the leading real estate firms in the country, it says. Aside from its headquarters in Columbus, Ohio, the company maintains offices in Sarasota, Fla., and Charlotte, N.C.

The company's representation in local markets distinguishes it from the competition, explains Dixon Fleming, partner and head of Casto efforts in the Carolinas. “We use local people,” he notes. “We know the local markets where we develop. I am a native Carolinian and I know this market well.”

Fleming, along with other members of Casto's executive committee, has led Casto's expansion efforts in the Carolinas, which started in 2005. “[Casto] saw the growth taking place here 20 months ago,” he recalls. “We saw the growth of products we enjoy developing. There's a big boom of mixed-use developments due to the growing population and the climate in the area. Also, mixed-use developments are becoming more popular because people want to live, work, shop and be entertained all in one area.”

So far, Casto Carolinas has acquired 1.5 million square feet of retail space along with three more projects under development that might exceed its current portfolio, Fleming states. “We anticipate at least 3 million square feet of properties in the Carolinas in the next three years,” he explains.

Current developments are in Charlotte, N.C., and two projects in the Raleigh area. “They are mixed-use projects that will include several-hundred-thousand square feet,” he says.

Some of the division's most recent acquisitions include three retail centers in North Carolina: 470,000-square-foot University Place in Charlotte, 236,213-square-foot University Commons in Burlington, and 361,165-square-foot Hanes Point in Winston-Salem.

“The North Carolina market, and these three acquisitions specifically, are key to strengthening our southeast portfolio,” partner Don Casto III said in a statement. “All three of these centers have strong locations, demographics and tenant mixes that fit well with our growth strategy.”

Regency Village
Casto also recently acquired Regency Village, a 75,000-square-foot retail space in Huntersville, N.C. Harris Teeter, a 48,756-square-foot grocery store, is the major tenant at Regency. The remaining space is home to specialty shops such as Ageless Remedy, Suncom, Casa Bella Salon and Spa, City Paw, Cry Cleaners Unlimited, Great Clips, Lee Nail, Ming Garden and Pack & Mail Plus.

“Regency Village is well-positioned to serve one of the fastest-growing and most affluent areas in the Lake Norman area of the Charlotte region, with projections for the area to grow at an annual rate of 4.5 percent for the foreseeable future,” Casto says. “Over 25,000 people live within three miles of the site and have average household incomes of $113,000.”

Local Efforts
Fleming says he sees a lot of opportunities in the Carolinas market, thanks to state and local governments' efforts to attract businesses.

“Fortunately, there has been an aggressive stance from politicians in charge and their efforts to grow [the] industry,” he explains.

For example, companies such as Google, FedEx and Dell have opened facilities in North Carolina, and BMW has a state-of-the-art production facility in South Carolina, Fleming says. “The economy has remained extremely good because of the governments' incentive programs to attract industry, which promotes new growth, and retail activities follow,” he continues. “Aggressive and strategic positioning into the Carolinas has left us with an opportunity to develop [and acquire] properties.”

'Positive Experience'
Another recent development for Casto is the growth of its third-party construction services. The company has seen major growth since 2002, especially in the Ohio market. “We occasionally get inquiries from [clients] who have seen our products,” Executive Vice President Dan O'Harra says. “Casto has done several third-party projects for the Columbus Housing Partnership [CHP], as well as other Columbus-based organizations.”

CHP is a local nonprofit organization in Ohio. Casto is currently working on Fieldstone, a 48-unit, three-story assisted living community. The $4 million project is expected to be completed in September 2007.

“It has been a positive [experience] for both parties,” O'Harra says. “Third-party work has given us the chance to level out our business a little bit and it has worked out great.”