Preferred Office Properties Pays $209M for Charlotte Towers

The affiliate of Preferred Apartment Communities acquired two new Class A properties in the city’s SouthPark submarket.
Capitol Towers - North
Capitol Towers – North

Preferred Apartment Communities Inc. subsidiary Preferred Office Properties has purchased Capitol Towers, two recently completed office buildings in Charlotte, N.C., for $208.8 million. HFF represented seller Lincoln Harris. The buyer used a non-recourse $126.7 million loan from New York Life Insurance Co. to finance the 477,704-square-foot acquisition.

Located at 4250 and 4350 Congress St. in the metro’s SouthPark submarket, the 10-story properties are within a roughly 20-minute drive from downtown Charlotte. Several blue-chip tenants operating in industries such as specialty chemicals, financial services, banking and insurance occupy space in the Class A, LEED Gold buildings. J.P. Morgan Private Bank, Sterling Capital Management, Albemarle Corp., Citizens Bank and MassMutual are among the tenants of the southern tower.

Senior Managing Director Ryan Clutter, Senior Director Scot Humphrey, Director Chris Lingerfelt and Director Zack Drozda were part of the HFF investment advisory team that represented the seller in this transaction and procured the buyer.  

Capitol Towers - South
Capitol Towers – South

Immediately after the closing, Preferred executed a new lease with an undisclosed tenant for nearly 33,000 square feet, bringing the property to an  approximately 95 percent occupancy. Lincoln Harris Senior Vice President Campbell Walker represented the landlord in the transaction, while JLL Managing Directors Chris Schaaf and Jim Thorp worked on behalf of the tenant.

The Capitol Towers acquisition increases the company’s office portfolio to 2.6 million square feet spread across seven assets. Last year, Preferred Apartment Communities acquired Wells Fargo Capitol Center, a roughly 560,000-square-foot office tower in Raleigh, N.C.

Images courtesy of Yardi Matrix