A prominent Charlotte office property has changed hands for $32 million, less than half the price of its last trade.
Trade Street RSK acquired the 32-story office tower at 121 West Trade Street for $93 per square foot, a significant drop from the $71.6 million ($209 per square foot) the building fetched in 2015 when Clay Duvall’s Lincoln Property Company acquired it on behalf of an Illinois pension fund, the Charlotte Business Journal reported.
CBRE brokers Patric Gildea, Matt Smith and Robert Hardaway represented Lincoln in the sale.
The buyer is an LLC tied to Jonathan Marcus and Ari Yasgur of New England Investment Properties, a Stamford, Connecticut-based investment and management firm that specializes in acquiring Class A and B properties across various asset classes.
The deal underscores the challenges facing Charlotte’s commercial landlords, especially as demand for office spaces continues to fluctuate.
Charlotte’s office vacancy rate reached 24.7 percent in the second quarter, according to Cushman & Wakefield. This rise in vacancies was primarily attributed to reduced demand and the delivery of large speculative office projects.
The 342,000-square-foot property, built in 1990, is at a prime intersection in Uptown Charlotte, offering visibility and accessibility. However, county records reveal that approximately 36 percent of its space — 122,000 square feet — is available for lease, which may have impacted its valuation.
The building was renovated in 2017, including updates to its lobby, common areas and restrooms. A tenant hub featuring meeting spaces, conference rooms and a 50-person training room was added to attract and retain tenants.
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Longstanding occupants include the Charlotte City Club, Elevate Textiles and telecommunications firm Ubiquity. Retail amenities include Reid’s Fine Foods and The Cut Barbershop.
New England Investment Properties’ North Carolina portfolio includes Griffith Commons in Salem; Westwood Park in Cary; and two properties in Raleigh —The Meadows at Briar Creek and The Oaks at Briar Creek. The firm also has properties in Connecticut, Massachusetts, Georgia and Alabama.