Portman-Developed 615 South College Sells for Highest Price Per Square Foot for Class A Workplace Residential Or Commercial Property in Charlotte History
CBRE Global Investors and a pension fund client simply obtained 615 South College, a brand-new Class A workplace tower in Charlotte for $222 million.
The sale of the 19-story, 375,865-square-foot office tower established by Atlanta-based Portman Holdings recorded in county records Tuesday. The brand-new office building was completed in 2017 beside Charlotte’s popular Westin Hotel and houses co-working firm WeWork.
The structure was sold by a joint endeavor partnership in between Portman, Los Angeles-based PCCP and a Chinese financial investment firm, China Orient Summit Capital Co., Ltd.
. At that rate, that sale works out to approximately $590 per square foot, a record cost per square foot for a Charlotte workplace home.
The office tower was constructed on top of a 1,456-space underground parking deck and the record-setting price shows in part the additional income produced by parking costs.
However, even representing the additional value from the parking earnings, the rate per square foot far eclipses any previous Class A workplace sale in Charlotte, which formerly had not exceeded $400 per square foot.
The sale did not set a general record rate for a Charlotte workplace property, nevertheless. That honor is still held by the 2016 sale of 301 S. College St. for $284 million.
The Atlanta office of Eastdil Secured organized the sale on behalf of the seller. The California State Teachers’ Retirement System (CalSTRS) joined CBRE Global Financiers in the building purchase. The purchaser and seller reacted to calls however stated they might not yet comment on the sale.
Brian Dawson, a managing director for Jones Lang LaSalle who heads JLL’s Capital Markets group in Charlotte, was not associated with the transaction but said he was not amazed that it traded for a record rate.
“This is a special property that is a really solid, well-designed, core trophy property located in Charlotte’s top submarket,” Dawson said. “The income produced by the parking garage and ancillary utilizes advantage net operating earnings.”
The office tower in Charlotte’s stylish Stonewall Passage is the last significant development finished by Portman Holdings before the death of its creator, renowned architect/developer John Portman, who died in December 2017. Portman personally cut the ribbon the main opening of 615 South College in May 2017.
The underground parking deck was developed by Portman at the very same time as the Westin Charlotte, which opened 15 years back. When Portman broke ground on the 700-key Portman-designed hotel in September 2000, the designer said the garage would be built to accommodate a 2nd stage that would comprise either extra hotel spaces or an office building.
The tower at 615 South College still is in its preliminary lease-up phase and currently is about 82 percent leased, according to CoStar research study. WeWork is the largest tenant and inhabits 76,000 square feet. Regions Bank occupies nearly 64,000 square feet. Other occupants consist of Addison Group, BDO U.S.A. and Direct Digital.
Asking rents are $39.50-$40 per square foot each year on a full-service basis.
To find out more on CBRE Global Investors’ acquisition of 615 South College, please see CoStar COMP # 4302369.