Michigan Firm Makes Second Charlotte Buy

CHARLOTTE, NC-Continuing its March through the metro area, MayfieldGentry Realty Advisors has bought 200 South Tryon St. nine months after purchasing nearby 201 & 237 South Tryon St. The latest addition to the Detroit-based company’s portfolio totals 210,246 sf.

MayfieldGentry did not release any transaction figures; however, an industry source tells GlobeSt.com the acquisition price was $38 million. An affiliate of Stamford, CT-based GE Asset Management, 200 South Tryon Street LLC, was the seller of the 17-story, class A office building Downtown.

200 South Tryon St. was built in 1962, and renovated in 2000 and 2001. The building is 94% leased with tenants including Wachovia Corp., ColeJenest & Stone, Flores & Associates and McCormick & Schmicks. “This is a terrific property in a very strong location which offers a strong income stream as well as the ability for us to add some real value through the hold period of the asset,” Chauncey Mayfield, president and CEO of MayfieldGentry Realty Advisors, says in a statement.MayfieldGentry, which made its latest acquisition on behalf of an institutional client, will handle asset management duties. Locally based Spectrum Properties will provide property management services.

In the third quarter of 2006, MayfieldGentry entered the Charlotte market with the acquisition of 201 & 237 South Tryon St., totaling 238,000 sf of class A office space. Wachovia Bank is the primary tenant.

MayfieldGentry’s second buy in the market in nine months highlights its positive view of Charlotte. “Despite significant levels of planned office development in this market, the economic fundamentals indicate that Charlotte will continue to grow in stature as a commercial center,” Mayfield adds. To illustrate his point, he cited a projected 25% population increase in Charlotte by 2015 and strong projected job growth.

According to CB Richard Ellis first quarter view, class A office space registered a 1.84% vacancy rate, with an average asking lease rate of $24.56 per sf. The report also says Charlotte’s unemployment rate reached 4.2% in January, up a notch from 4% in October. However, the current figure is still below 5% state unemployment rate and the 4.6% national rate, CBRE adds.

Supporting Mayfield’s observation of increased construction activity in the city, CBRE reports approximately 2.7 million sf of office is currently under construction. Notable projects include Ghazi Co.’s 140,000-sf EpiCentre set to deliver this summer, the 1.2-million-sf Wachovia IV set to deliver in late 2009, and Bank of America’s 800,000-sf office tower set to deliver in 2009. All three projects are rising in the CBD.