CBRE’s Capital Markets team has executed the sale of 400 South Tryon, a Class A 33-story office tower in the heart of the Charlotte, NC, central business district. The 587,081-sq.-ft. property is 94.6% occupied after a recent renovation. Funds managed by Oaktree Capital Management, L.P. (“Oaktree”) acquired the property from DRA Advisors in partnership with Trinity Capital Advisors.
CBRE’s Patrick Gildea, Matt Smith, Will Yowell, Justin Parsonnet, and Jay O’Meara represented the seller in the transaction. CBRE’s Harris Ralston, Jeff Ackemann, and Jonathan Rice arranged a floating rate senior mortgage on behalf of the buyer, Oaktree.
“The South side of Tryon Street has grown into one of Charlotte’s most vibrant areas, transitioning from a predominantly business and financial district into one of the city’s most lively urban neighborhoods,” said Mr. Gildea, executive vice president at CBRE. “400 South Tryon offers high-quality space in an amenity-rich live-work-play environment, drawing a wide-variety of users as shown by recent leasing. The building has also undergone extensive renovations featuring a modern lobby, new restrooms, one of the nicest building fitness centers in the Charlotte CBD, and a variety of new, street-level retail space. Oaktree’s acquisition of 400 South Tryon is yet another indication of continued interest from institutional investors in the Charlotte office market.”
400 South Tryon was 94.6% occupied at the time of sale. Most recent new tenants include Skillstorm (14,541 sq. ft.), Document Technologies (10,111 sq. ft.), and Driven Brands (9,654 sq. ft.).
“The Southeast is experiencing strong office investment activity, which has been the case for several consecutive years,” said Mr. Yowell, vice chairman at CBRE. “Our team has been involved in over $7 billion of office transactions in the region, which affords us the opportunity to identify trends and emerging capital sources. Given this reconnaissance, we see strong activity continuing throughout the remainder of 2018.”
According to the 2018 Southeast U.S. Real Estate Market Outlook, Charlotte’s strong market conditions have produced increased investment sales activity, particularly in the premier submarkets of Uptown, SouthPark and Midtown. As competition for assets in primary markets gets hotter, some investors are seeking out opportunities in high growth secondary markets like Charlotte where higher returns are achievable.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
