Dilweg Cos. Buys Big in FL, NC

The company paid $116 million for a pair of Class A office buildings in Sarasota and Charlotte. HFF arranged the deal and secured financing.
First Citizens Bank Plaza
First Citizens Bank Plaza

The Dilweg Cos. has acquired a two-building office portfolio in a $115.5 million transaction, comprising First Citizens Bank Plaza in Uptown Charlotte, N.C. and Sarasota City Center in Downtown Sarasota, Fla.

HFF marketed the portfolio on behalf of the seller, Osprey, based in Brighton, MI. Working on behalf of the Durham, N.C.-based buyer, HFF helped procure a fixed- and floating-rate loan with Torchlight Investors. Partially funding the acquisition, the structured financing also has the capacity to fund near-term planned capital improvements and leasing-related costs on the properties.

First Citizens Bank Plaza is a 476,987-square-foot, Class A, 23-story multi-tenant office building, developed in 1986 and renovated in 2002, located at 128 South Tryon Street. Featuring a seven-story parking garage with 701 stalls, on-site restaurants and a bank, it is currently 29 percent occupied. Tenants include First Citizens Bank, Collabera, Manpower, Voya Financial Services, American Heart Association and Strategic Staffing.

Sarasota City Center
Sarasota City Center

Sarasota City Center is a 245,293-square-foot, Class A office building, comprised of 13 floors in the north tower and three floors in the south tower. The property was completed in 1989 and it is 88 percent leased, with tenants including Boar’s Head, RBC Capital Markets, Merrill Lynch and Wells Fargo. Featuring a six-story parking garage with 625 stalls, amenities include an on-site restaurant and bank, fitness center, hair salon and spa, dry cleaners, lockers and courtyard with tables and chairs. Sarasota City Center is situated at 1819 Main Street, within walking distance of several restaurants and retail, Pane Park, Sarasota County Courthouse and a Whole Foods Market.

The HFF investment sales team representing the seller was led by Senior Managing Director Ryan Clutter, Senior Managing Director Herman Rodrigues, Director Scot Humphrey, Associate Director Chris Lingerfelt and Associate Tracey Goo.

“The sale of First Citizens Bank Plaza and Sarasota City Center demonstrates the appeal in the marketplace for well-located, CBD assets with notable upside opportunities,” said Ryan Clutter in prepared remarks.

“First Citizens Plaza offers tremendous upside to its new ownership group and is one of the best-located office buildings in the Uptown Charlotte area,” Chris Lingerfelt added.

Senior Managing Director Travis Anderson and Director Brent Bowman led HFF’s debt and equity placement team representing the buyer/borrower.

“First Citizens Bank Plaza and Sarasota City Center are two, well-located office buildings that will greatly benefit from a fresh infusion of capital as well as Dilweg’s strong track record of successfully stabilizing value-add office properties,” Travis Anderson said in a prepared statement.

“While the significant vacancy of First Citizens made acquisition financing challenging, ultimately the high-quality nature of the assets, prime CBD locations and experienced sponsorship attracted many lenders to the table,” added Brent Bowman.

According to Yardi Matrix data, First Citizens Bank Plaza previously sold for $77.3 million in 2006, while Sarasota City Center last traded hands in 2000 for $24.9 million.

Recently, HFF played a supporting role in one of the largest real estate transactions in North Carolina, orchestrating a $350 million financing package for a high-profile deal.

Images courtesy of Yardi Matrix