20-Story Office Tower for Sale in Uptown Charlotte

Thursday, September 20, 2018

HFF, on behalf of the owner, is marketing for sale 101 North Tryon, a 546,878-square-foot, 20-story office tower located in a landmark “main and main” location within Charlotte’s highly coveted central business district (CBD), which is affectionately referred to as Uptown. Currently 79 percent leased, the asset presents investors with an incredible mark-to-market opportunity as in-place rents are nearly $10 per square foot below average Class A rates. The property stands to benefit from significant recent and ongoing upgrades valued at more than $8 million to the lobby, atrium and common areas, which have served to catalyze leasing activity in the current vacant spaces. Furthermore, the portion of the office property for sale that fronts Church Street has entitlements for additional development potential where the The Ivey’s Hotel parking deck currently sits, providing optionality and upside for investors. 101 North Tryon provides an incredibly rare value add opportunity within the high-barrier-to-entry Uptown Charlotte market.

As one of Charlotte’s most prized locations, Uptown Charlotte continues to display a rapidly-decreasing supply of cost-effective developable land, creating a landlord-friendly environment conducive to long-term rental rate growth. 101 North Tryon’s central location in downtown Charlotte is within walking distance to all major public transportation centers, including the bus, trolley and light rail, providing convenient access to nearly all of downtown Charlotte’s amenities and attractions. Additionally, the location is within walking distance of more than 100 restaurants ranging from fast casual to fine dining. Notable names include Ruth’s Chris Steak House, Morton’s, the Capital Grille and Essex Bar & Bistro. The asset also benefits from proximity to Charlotte’s most popular après-work destinations, including Merchant & Trade, 204 North, 5Church, and Sophia’s Lounge.

Office Tower for Sale Investment Highlights

  • Market-Leading On-Site Amenities:  101 North Tryon boasts interior connectivity to the Charlotte Marriott City Center and the boutique The Ivey’s Hotel, creating a premier office location for businesses that often host guests from other cities. In addition, several of Uptown’s most popular restaurants and coffee shops have access points in the building’s lobby and atrium, including Starbuck’s, Newk’s Eatery, Qdoba, Stoke and Coco and the Director. Unparalleled access to these popular amenities is a difference maker for tenants hunting for space in Charlotte’s CBD.
  • Additional Development Potential:  The opportunity exists to build a variety of dense uses where The Ivey’s Hotel parking garage fronts Church Street. Given the location at the central hub of activity in Charlotte, significant value could be created by adding vertical density to the site, which benefits from desirable Uptown Mixed-Use District (UMUD) zoning and a premier location at the heart of Uptown. UMUD zoning permits and encourages the development of retail and wholesale trade, offices, hotels, convention and conference centers, merchandise markets, high-density residential developments and parking garages. Its purpose is to strengthen the high-density core of the city while seeking sensitivity to the pedestrian environment through the use of urban design and open spaces.
  • Unmatched Accessibility to Major Thoroughfares and Public Transit:  101 North Tryon boasts immediate access to several major thoroughfares, including Trade Street, Tryon Street and Church Street. The office tower also features convenient access to I-277, I-77, I-485 and the I-85 corridor. The asset is 15 minutes from the Charlotte Douglas International Airport, 15 minutes from SouthPark (Charlotte’s Premier Shopping destination) and walking distance to any major downtown destination. Furthermore, 101 North Tryon sits just two blocks from the nearest Light Rail Station (CTC/Arena), which currently stretches 19 miles from South Charlotte to the UNC Charlotte campus on the northern side of the city. In addition to convenient access to the light rail, 101 North Tryon also benefits from immediate access to the planned CityLYNX Gold Line streetcar stop on Trade Street. When completed, the Gold Line will connect Charlotte’s West End with Novant Presbyterian Hospital and the Elizabeth neighborhood.
  • Stable, Credit-Worthy Tenant Roster:  101 North Tryon features an impressive tenant roster anchored by industry leading, creditworthy tenants with attractive remaining term. The asset contains a blend of publicly traded national and international firms, expanding regional firms and well-respected local businesses, some of which are headquartered at the property. Representing a broad range of industries including banking, law, business services, consulting, education, financial services and engineering, the diverse tenant roster is well-positioned to mitigate downturn economic risk. Moreover, the asset is 65 percent leased to creditworthy tenants with strong ties to Charlotte and this location including, Bank of America (NYSE: BAC; Moody’s: A3), Robinson Bradshaw & Hinson P.A., Spaces (NASDAQ: IWG.L), Smith Moore Leatherwood LLP, Starbucks (NASDAQ: SBUX) and Northeastern University (Moody’s A1). With a weighted average lease term of nearly five years, the offering presents a premier tenant roster with exceptional remaining term for the credit tenants, providing investors highly coveted long-term stability.
  • Attractive Ground-Floor Retail Opportunity and Flexibility:  101 North Tryon offers a potential investor immediate upside and flexibility through the lease-up of 12,551 square feet of street-level vacancy. Of the 12,551 square feet, 10,193 square feet are contiguous, with the remaining 2,358 square feet offering rare mid-block opportunity with frontage on Tryon Street, the main artery through uptown Charlotte. As the push towards “live, work, play” continues, the asset is well positioned to capitalize on the immediate retail opportunity, further enhancing the existing on-site amenities.

101 North Tryon offers prospective investors an extremely rare investment opportunity ideally located in the heart of the Charlotte CBD. This unique offering presents a new owner immense upside through below-market near-term rollover, market rent growth and lease-up. Infill real estate investments of this caliber with underlying upside are limited. The Charlotte office market’s fundamentals are flourishing and poised for further growth, creating the perfect landscape to invest and capitalize on the area’s booming economy. 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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