Stiles Announces $28.775 Million Sale of Boutique Office Asset in Charlotte N.C.'s South End
Posted on 1/9/2021Investor demand in Charlotte's South End office market continues as Stiles announces the sale of 300 W. Summit Avenue. A newly raised core fund advised by Zurich Alternative Asset Management, LLC ("ZAAM") of New York acquired the property for $28,775,000 in a direct transaction with Stiles.
"When we first decided to break ground, even without having any pre-leasing to speak of, we believed that the appeal and promise of South End would ultimately attract quality employers seeking to recruit and retain top talent," said Justin Siemens, President of the Stiles Carolinas Group. Siemens added, "This has shown to be the case at 300 W. Summit, and we have every confidence that this trend will continue as we remain active in the growth and development of South End."
Completed by Stiles in May 2019, the 64,000-square-foot office building reached 87 percent occupancy by the time of sale. Tenants include OneMagnify, Environment Resources Management, BR+A Consulting Engineers, Colliers, The Providence Group, Upstream, BSB Design and Stiles.
ZAAM was represented in the acquisition by Roy Rosenbaum, Director of Acquisitions, and Sean Bannon, Managing Director and Head of US Real Estate. "We are excited to make this investment in South End, which we see as one of the most dynamic and promising office submarkets in the country," remarked Rosenbaum. "We believe that Charlotte's outstanding quality of life, strong growth in STEM employment and low cost of doing business leaves it strongly positioned over the coming year. For our balance sheet and third-party investors, we see Charlotte as benefiting from strong secular trends. As we expect that to continue, so will our exposure to new investment in Charlotte and specifically the South End," Bannon added.
The three-story building features a 2,000-square-foot rooftop terrace with unobstructed views of uptown Charlotte and two levels of underground parking. Situated between Church and Mint Street on Summit Ave. in historic South End's growing Gold District, the property is within walking distance of the Bland Street light rail station and surrounded by a wide variety of neighborhood restaurants and retail.
"We are proud to have established a strong local presence in Charlotte with a highly skilled development team who has decades of experience in the Carolinas, and we look forward to many successful future transactions in the region," said Stiles CEO Ken Stiles.
In addition to 300 W. Summit, Stiles, by way of its Charlotte office, has completed four Publix-anchored shopping centers in Charlotte totaling a quarter million square feet, a 90,000-square-foot Publix-anchored shopping center in Charleston, S.C., a 186-unit luxury apartment community in Raleigh, and a Pillar Award-winning luxury residential tower in Nashville, TN.
Stiles is currently in the predevelopment stages of 110 East, a 370,000 square foot, 23-story, Class A office tower at the East/West light rail station in South End; Greenly Pointe, a 15-acre mixed-use development at the entrance to the University Research Park off West Mallard Creek Church Road in Charlotte; and Grove Ninety-Eight, a 70-acre mixed-use development in Wake Forest along Hwy 98 east of Capital Boulevard planned for200,000-square feet of commercial, 232 apartments and 400 "for sale" residential units.