Charlotte's iconic Rotunda Building on the market

Wednesday, May 25, 2016

Update: This property is no longer on the market since it sold. Click here to read about the sale and the financing arranged by HFF for the property.

The owner of the Rotunda Building has retained HFF to exclusively market the premier, Class A, 230,790-square-foot, multi-tenant office building for sale in Charlotte, North Carolina.

The Rotunda Building represents one of Charlotte’s trophy iconic office buildings and affords a potential buyer the opportunity to invest in the prestigious SouthPark submarket. Situated on 5.34 acres at 4201 Congress Street, the building is at the intersection of Congress Street and Carnegie directly across from SouthPark Mall. The average in-place rent at the Rotunda Building is just over $26 per square foot, presenting an investor with an incredible mark-to-market opportunity since the SouthPark submarket continues to tighten and comparable office building rental rates range from $30 to $35 per square foot. Current market conditions further complement the opportunity, as the Class A rental rates have grown nearly 12 percent since 2011 in the submarket.     

Unique to the area, the building’s two-story parking deck has three ingress and egress points, making it convenient for visitors. The four-story building has a lobby with a two-story Porte Cochere with Italian marble, and Village Tavern, a full-service restaurant, is a tenant in the building. The 86-percent-leased building is home to a variety of tenants, including First Bank, CWA, KDC, Carroll Financial Associates, JLL, Capital South and B2R.


Office Building Investment Benefits

  • Epicenter Location: The Charlotte City Council recently approved a $125,000 contract with the Urban Land Institute to explore the likelihood of a SouthPark transformation from an auto-centric, suburban area into a denser, transit-oriented urban district. The Rotunda Building would be in the heart of the urbanization movement. Currently, the property is minutes from Charlotte’s central business district, major intersections, the nation’s sixth busiest airport and a host of other recreational offerings. Additionally, SouthPark is one of the most affluent areas in the Charlotte MSA, and the population is expected to swell nearly 12 percent in the next five years, which will substantially boost economic fundamentals in the area.
  • Ideal Live-Work-Play Environment: Surrounded by more than 2.5 million square feet of high-quality shopping, restaurant and grocery offerings, the Rotunda Building is steps from SouthPark Mall, the region's preeminent shopping destination with luxury retailers and specialty stores.
  • High Barriers to Entry: The 5.3-acre site on which the Rotunda Building rests presents a potential buyer with a unique opportunity to purchase one of the most recognizable office sites in the Charlotte office market. The proximity to a robust amenity base in SouthPark Mall and the frontage along one of SouthPark’s main arteries in Barclay Downs Road ensure the long-term residual value of the asset. This dynamic, coupled with the recent trend of multi-family development for any available parcels of land in the submarket, make the barriers to acquire an asset like the Rotunda Building extremely high.
  • Historically-Resilient Asset: Historically, the rent roll for this commercial property in Charlotte has been heavily weighted on financial and investment firms that choose the convenience of a SouthPark office location over downtown. The strategic location between the neighborhoods of Myers Park, Foxcroft and SouthPark ensures that business executives who live in these neighborhoods note Rotunda Building when looking for office space.

Rotunda Building is an iconic trophy office property for sale in Charlotte, North Carolina, in the prestigious SouthPark submarket. This property presents an opportunity for investors to acquire a mid-rise office asset in what the Urban Land Institute named the No. 3 most attractive U.S. Investment Market in 2016.  For more information on this or other commercial real estate listings in the Carolinas, contact HFF Senior Managing Director Ryan Clutter or Director Scot Humphrey in HFF’s Carolinas office.

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