BB&T Center (200 S. College) sold for $115 million

[southernnorthcarolina]

DEVELOPMENT

Development

BB&T office tower in uptown Charlotte sold for $115 million to a New York firm

BY DANIELLE CHEMTOB

JANUARY 20, 2021 02:15 PM, 

UPDATED 41 MINUTES AGO 

 

The BB&T Center in uptown Charlotte sold for $115 million to a New York company, Mecklenburg County property records show. 

The sale included the 22-story office tower and the parking garage next door, according to a Tuesday release from JLL Capital Markets, which brokered the sale. 

The center, which was built in 1977, was sold to an entity called BB&T Properties LLC, based in New York. JLL’s release declined to name the buyer.

Read more here: https://www.charlotteobserver.com/news/business/biz-columns-blogs/development/article248637945.html?ac_cid=DM368298&ac_bid=-799966545#storylink=cpy

 

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If this ain't a canary in a coal mine, I don't know what is.  This building sold for $117 million in 2007, $149 million in 2017, and now $115 million.  Nobody seems to be willing to accept the fact that "Uptown" Charlotte is overbuilt, especially in the office and hotel sectors.  The Class B buildings (including the subject property, and several other towers built in the '60s/'70s) are going to take it on the chin as their tenants are given deep rental discounts and lease concessions by the landlords of the new buildings.

 

 

 

 

 

Edited January 20, 2021 by southernnorthcarolina

[KJHburg]

actually the former owners Arden sold the parking garage to Cousins for $85 M so they made a profit as they purchased the building and the garage.  The building has high occupancy.

[Blue_Devil]

24 minutes ago, KJHburg said:

actually the former owners Arden sold the parking garage to Cousins for $85 M so they made a profit as they purchased the building and the garage.  The building has high occupancy.

Wait I am confused the article says the garage and the building. Was there a second garage in the 147 price? 

[KJHburg]

4 minutes ago, Blue_Devil said:

Wait I am confused the article says the garage and the building. Was there a second garage in the 147 price? 

the article is wrong.  the office building was sold just that and the parking garage was purchased by Cousins for $85 M for their newly renamed BofA Plaza building to use

Cousins Properties Buys Uptown Charlotte Parking Garage for $85 Million | CoStar

here is the Biz Journal article on the building sale

Uptown office building BB&T Center sells to New York group for $115M - Charlotte Business Journal (bizjournals.com)

[atlrvr]

Correct, adding in CapEx but netting out cash flow, and assuming 50% debt, a nice approx 70% return for Arden.  Long live Uptown

[Blue_Devil]

34 minutes ago, atlrvr said:

Correct, adding in CapEx but netting out cash flow, and assuming 50% debt, a nice approx 70% return for Arden.  Long live Uptown

So the total return on this property was $210 Million.... Is the Canary telling us uptown is thriving property price wise? 

[southernnorthcarolina]

 

So the Charlotte Observer was wrong?  What a surprise!  If the parking deck was not part of the sale, then of course the sellers did well.

I suspect there are side deals which we're not yet seeing.  If Cousins has indeed purchased the parking deck, they likely have leased a significant number of parking spaces to the new owners of the 200 South College Building (or whatever they call it after BB&T leaves).  It would make no sense for someone to buy the building without having parking for their tenants.  So that will cut into the total return for Arden.

I look forward to a clarification or correction from the Observer.