Newly Constructed State-of-The-Art Midrise Office Building for Sale in Charlotte

Wednesday, June 13, 2018

HFF, on behalf of the owner, is marketing for sale 500 East Morehead, a 178,336-square-foot, newly constructed office asset located in the flourishing Charlotte market. Ideally positioned in one of the Southeast’s top-performing submarkets, Midtown/South End, the property is 98.6 percent leased to an attractive tenant roster anchored by credit-worthy tenants with strong ties to the Charlotte market. This core investment opportunity features exceptional remaining term and is poised for a tremendous long-term outlook as the asset offers an unmatched ability to attract and retain tenants due to best-in-class tenant buildouts, a market-leading amenity package and the market’s premier office location.

500 East Morehead is a generational investment presenting investors with the unique opportunity to acquire Charlotte’s premier mid-rise office asset and obtain a stabilized, cash-flowing investment in one of the country’s fastest-growing markets. Featuring floor-to-ceiling window lines, impressive lobby areas, creative meeting spaces, modern breakrooms, private conference rooms, private patios and attractive executive offices, 500 East Morehead boasts some of the best tenant spaces in the market. Significant tenant investment in the spaces, above the TI packages, has allowed for these extremely attractive buildouts and demonstrates the current tenants’ long-term commitment to the asset. The office building for sale also offers the top amenity package in the Charlotte market that includes a state-of-the-art on-site fitness center; upscale men’s and women’s locker rooms with showers; a shared executive conference room; three shared outdoor terraces with spectacular Uptown views; a 900-square-foot rooftop terrace with views of Uptown, South End and Dilworth; an attached four-level parking deck and three popular restaurants on the ground-level. These competitive advantages allowed ownership to rapidly stabilize the asset and will provide investors with the ability to retain existing tenants and attract new tenants to the property for the long-term.

500 East Morehead is ideally situated at the center of Charlotte’s fastest-growing area with unprecedented access to Uptown, Midtown, South End and Dilworth. While benefitting from this dynamic location, the asset offers seamless ingress/egress with three access points on Morehead Street, Lexington Avenue and Caldwell Street, allowing for free traffic flow for tenants and visitors.

Office Building for Sale Investment Highlights

  • Generational Core Investment Opportunity:  Combining the creativity of South End, the history of Dilworth and the modern atmosphere of Midtown, 500 East Morehead provides the quintessential environment for corporate enterprise. As a result, the asset is 98.6 percent leased to a credit-worthy tenant roster boasting more than nine years of weighted average lease term. With extremely high barriers to entry along the Morehead Corridor, as development restrictions and scarcity of unimproved sites limit supply, investors are presented with a rare opportunity to acquire the premier office asset in Charlotte’s tightest submarket. The only offering of its kind in one of the nation’s fastest-growing markets, 500 East Morehead presents investors with a truly generational investment opportunity.
  • Trophy, Transit-Oriented Office Building:  Delivered in April 2017, 500 East Morehead is a newly constructed seven-story office asset. The office property for sale boasts an innovative design, sweeping views of Uptown Charlotte, an attached four-level parking deck and attractive concrete and glass facades distinguishing it as one of Charlotte’s iconic office buildings. Impressive lobbies, Class A interior finishes and scenic outdoor patios leave a lasting impression on tenants and visitors and will greatly benefit investors long term leasing efforts. Moreover, as a newly constructed property, there will be no deferred maintenance for investors. The property is located two blocks from the Carson Boulevard light rail station and the Charlotte Rail Trail, allowing access to public transit and walking distance to some of the most populated residential areas in the city tapping into both the millennial population in South End and executive neighborhoods in Dilworth. Moreover, the asset is a five-minute walk from Uptown, and the property’s location places it an area with a vibrant atmosphere. Situated on the pedestrian-friendly, tree-lined East Morehead Street, the asset has the benefit of proximity to Charlotte’s urban core and a suburban neighborhood setting.
  • Diverse, Credit-Worthy Tenant Roster Featuring Exceptional Remaining Term:  500 East Morehead features an impressive tenant roster anchored by credit-worthy tenants with attractive remaining term. The asset contains a blend of publicly traded national and international firms, expanding regional companies and well-respected local businesses, some of which are headquartered at the property. Representing a broad range of industries including infrastructure and construction, accounting, real estate, insurance, finance and retail, the diverse tenant roster is well-positioned to mitigate downturn economic risk. Moreover, the asset is 80 percent leased to credit-worthy tenants, CB&I (NYSE: MDR), Elliott Davis and Lennar Multifamily Communities (NYSE: LEN), all with strong ties to the Charlotte market. With a weighted average lease term of more than nine years, the offering presents a premier tenant roster with exceptional remaining term offering investors highly coveted long-term stability.
  • Urban Location with High Barriers to Entry:  The Morehead Corridor poses the highest barriers to entry in the Charlotte market. Height restrictions, a high water table, smaller parcel sizes and scarcity of unimproved sites limit the potential for future office development in the area. 500 East Morehead is a one-of-a-kind newly constructed office asset in this thriving corridor. Investors have the assurance that competitive product is an unlikely prospect, specifically over the course of a new owner’s hold period. As a result of the high barriers to entry in the Morehead Corridor, office product benefits from market-leading fundamentals. The highly desired location coupled with limited available supply creates the ideal environment for office investors allowing ownership to achieve the premier occupancy and rental rates in the Charlotte market.

500 East Morehead features a state-of-the-art office building in Charlotte’s most competitive submarket. Investors have the opportunity to acquire the office asset in the tightest submarket in the Southeast with unmatched competitive advantages driving tenant demand, consistently achieving premium rental rates and resulting in above-market occupancy. For more information on the this commercial real estate listing or any other office properties for sale, please contact Ryan Clutter, Scot Humphrey, Chris Lingerfelt or Zack Drozda in HFF’s Carolinas office.  To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

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