Arch Cos. JV Snags $63M Charlotte Office
- Oct 16, 2018
Arch Cos. recently enhanced its portfolio with the acquisition of Cambridge, a 350,000-square-foot office asset in Charlotte, N.C. The company and partner Lakestar Properties purchased the building from a joint venture of affiliates of Atlantic Creek Real Estate Partners, Origin Investments and Stream Realty Partners in a $63 million transaction.
Developed in 1990, Cambridge features mission-critical infrastructure and sits at 10101 Claude Freeman Drive amid a 50-acre park-like setting within the 2,200-acre University Research Park, one of the largest and most prominent research parks in the U.S.
“We thought it was a good opportunity,” Jared Chassen, partner with Arch Cos., told Commercial Property Executive. “We like the tenancy in our building—there’s a diverse mix of credit tenants–and the surrounding campus is amazing.”
Arch relied on the assistance of Abe Katz and Mark Silbersher of Walker & Dunlop to secure $50.4 million of fixed-rate financing to partially fund the acquisition of the three-story property, with Citigroup and Morrison Street Capital providing a first mortgage loan and mezzanine loan, respectively.
Rob Cochran, Jared Londry and Nolan Ashton of Cushman & Wakefield Charlotte, in addition to David Meline and Samir Idris of Cushman & Wakefield Atlanta, and Mark DeLillo and Craig Callaway of Bluegate Partners represented the sellers. The partnership had acquired Cambridge in 2014 for $43.5 million, adding roughly $20 million in value over the course of four years.
On the radar
Arch is keeping its eye on the Charlotte market. “We like the area and what’s being done with light rail and there are great retailers coming into the area—it has all the drivers for a great office environment,” Chassen said. Charlotte’s thriving economy is a strong magnet for investors, too.
Arch, however, remains active across the country and across property types. Most recently, the real estate investment and management company snapped up a majority stake in Savings Street Tower, a 109-unit multifamily community in Waterbury, Conn. “We’re nationally focused and we’re expanding the brand,” added Chassen.
Image courtesy of Arch Cos.