LPC Closes $71.6M Charlotte Office Tower Deal

LPC Realty Advisors I, LP, an affiliate of Lincoln Property Company, in conjunction with their local affiliate Lincoln Harris, has closed on the purchase of a 32-story office building in Charlotte, North Carolina for $71.6 million on behalf of a pension fund client. Holliday Fenoglio Fowler, L.P. (HFF) marketed the property, represented the seller in the transaction, a partnership controlled by the Durham-based Dilweg Companies, and also secured a $44.1 million loan on behalf of LPC to finance the purchase. Initial proceeds of $36.1 million were used for post-close acquisition financing, while the remainder will be used for future capital costs, according to a CPE report. The Dilweg partnership originally acquired the building in 2013 for $59.6 million.

"The market aggressively pursued 121 West Trade Street as buyers realized the building’s potential to harness very strong rents in the future,” said HFF senior managing director Ryan Clutter. "We are currently experiencing the strongest demand in the market for value-add office buildings located in strong CBD’s like downtown Charlotte. 121 West Trade Street was no exception as considerable capital aggressively competed for this asset."

Built in the 1990s and formerly known as Interstate Tower, 121 West Trade Street was designed by Kohn, Pedersen and Fox, with a dramatic two-story lobby featuring upscale green, black, and white marble and brass trim. The 329,930 square foot building is in the heart of downtown Charlotte within walking distance of amenities and attractions including The EpiCentre, Spirit Square Center for the Arts, Discovery Space Center, Time Warner Cable Arena, the Levine Center for the Arts, and the new Gold Line streetcar system. The property was 74% leased at the time of sale with major tenants including Chicago Bridge & Iron, SAS Institute, Caudle & Spears and Brookwood Associates.

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Water Ridge Office Park Sold for $115M

A partnership managed by Mainstreet Capital has sold Water Ridge Office Park in suburban Charlotte, North Carolina in a $115 million sale arranged by Holliday Fenoglio Fowler, L.P. (HFF). New York Life Real Estate Investors coordinated the acquisition of the 11-building, 844,958-square-foot, Class A office park on behalf of New York Life Insurance Company who purchased the portfolio. Mainstreet Capital Partners and Goldman Sachs Group Inc. listed the portfolio for sale this spring. The property previously traded hands in January 2013 when Archon Group, the real estate investment and management arm of Goldman Sachs Group Inc., together with Mainstreet purchased the office park from affiliates of TIAA-CREF for $75 million.

"Given Water Ridge's proximity to the airport, Downtown Charlotte and numerous residential areas, the park has experienced tremendous leasing demand and rents have climbed considerably over the last few years," said Ryan Clutter, Senior Managing Director at HFF, who represented the seller. "This well positioned office park received strong interest from institutional capital who continue to have a strong appetite for Charlotte opportunities."

The buildings at Water Ridge, formerly known as LakePointe Office Park, were 82% occupied at the time of sale with major tenants including The Vanguard Group, SunTrust Banks Inc., Carolinas HealthCare System, Publix Super Markets and Midrex Technologies Inc. Built between 1989 and 2001, the park has undergone an extensive renovation in the past year with updates to many of the lobbies, restrooms and elevators throughout the park.

For more news and information visit Blumberg Partners.

101 Independence Center Sold for $108M

A corporation affiliated with Cornerstone Real Estate Advisers, one of the largest global real estate investment managers and member of the MassMutual Financial Group, picked up the 20-story 101 Independence Center office tower in uptown Charlotte for $107.75 million this month, according to public records. HFF orchestrated the sale on behalf of KBS Real Estate Investment Trust and asset manager Gramercy Property Trust Inc., which originally put the property on the market in December 2014 seeking to get $120 million for the building. Terms of the deal were not disclosed.

"101 Independence Center received very strong interest from the marketplace attracting a deep bench of investors. Charlotte has truly evolved into a dynamic market for institutional capital," said Ryan Clutter, senior managing director with HFF. "Charlotte has truly evolved into a dynamic market for institutional capital. Given the strong investor appeal of Charlotte currently, we anticipate a very active selling environment through the remainder of 2015 with many notable institutions seeking quality investments in the city."

Located at 101 N. Tryon St., the building houses about 565,000 square feet of office space and is 83% leased, with Bank of America as the largest tenant. Northeastern University opened a satellite campus in the building in 2011. The construction of the building was completed in 1983 and sits on the site of the former site of the Independence Building at Charlotte's Independence Square.

For more news and information visit Blumberg Partners.