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cw52808

First Citizens Tower sold for $77 million

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Here's the link:

[url=http://www.charlotte.com/mld/charlotte/14089464.htm] Or is it being bought to collect the significant cash flow being put out by the tennants?

Yes. Trust me, even a site that prime isn't worth $40M an acre. If the sale included the parking deck at 4th and Church, then that site could possibly be redeveloped at some point, but this was just a straight up investment sale.

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From the sound of these figures, First Citizens Tower was bought as an as-is investment:)

I remember so distinctly when FC was built. Now to think there is even a discussion of tearing it down~~~

I never liked it in the first place!

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heh, we shouldn't be tearing anything down until every surface lot is taken up.

I don't think the building looks bad, it fills in the skyline from certain angles. It is quite poor at the street level if I remeber correctly, but that can be remedied with a little renovation.

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Look for several other announcements in the next few weeks......Charlotte's popping with office investor interest....just not developer interest yet....but this could be sign on strong interest.

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Look for several other announcements in the next few weeks......Charlotte's popping with office investor interest....just not developer interest yet....but this could be sign on strong interest.

I agree. Didn't spec hit the Atlanta scene in the early 80's.?

Atlanta was esentially the same size as CLT is today ar roughly 2,000,000 and change. Now they are double that.

I am not trying to say I want to be ATL (far from it), but just saying spec development usually waits until cities mature.

Charlotte is just getting through teenage life right now. It still rebels at the sign of growth and still has to face the pains that it brings.

I just hope that once we (Charlotte) turns 16 we get a nice ride. ATL got a corvette when it came to development and corporate interest.... It just came with a bad brake :P

A2

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Look for several other announcements in the next few weeks......Charlotte's popping with office investor interest....just not developer interest yet....but this could be sign on strong interest.

So you're saying we may have a spec office building in the works here?

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Not that I'm aware of....I was hinting that there will be a few more downtown towers getting sold in the next few weeks to investors (and maybe 112 S. Tryon going condo)......strong investor interest COULD lead to spec development, but I've heard no rumors to that affect.

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Real estate is slowing in other regions, and it would make sense that investors are hunting for steady markets that pay supportable rents. There's been a lot of speculation the last several years-- in a rising interest rate environment, investors will want to enter their positions with a longer term view.

And I think I'm being kind, to call it "slowing". The residential market is seeing backlogs of 6 to 12 months available inventory in formerly "hot" markets like Las Vegas and Phoenix.

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Did anyone notice the CBJ this week. I think there was mention of the Interstate Tower building being purchased. I totally forgot to pick one up on Friday. Oh well, I guess I will have to wait until Monday to pick mine up unless one of you guys knows something?

A2

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Did anyone notice the CBJ this week. I think there was mention of the Interstate Tower building being purchased. I totally forgot to pick one up on Friday. Oh well, I guess I will have to wait until Monday to pick mine up unless one of you guys knows something?

A2

I had to dig though my recycle bin, but anything for A2.

Interstate, 112 S. Tryon and 129 W. Trade are all in various stages of changing hands. Interstate is being pursued by Mass Mutual and is likely to be sold first. 129 is under contract to the Dilweg Cos., who also owns The Power Building. 129 and 112 are both rumored to be under consideration for condo conversions. Crown Realty and Development of Irvine, CA is the party pursuing 112. The Interstae Tower and 112 are 50% vacant. 129 is 15% vacant. BofA leases a bunch of space there that they could easily do without IMO.

Apparently, 2nd tier markets such as Charlotte are in demand for companies with money to invest because they want to reduce dollars in stocks and top tier cities have little inventory for sale. Buildings with above average vacancies are good because the investors can make changes and increase the value fairly easily.

- graydog

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I had to dig though my recycle bin, but anything for A2.

Interstate, 112 S. Tryon and 129 W. Trade are all in various stages of changing hands. Interstate is being pursued by Mass Mutual and is likely to be sold first. 129 is under contract to the Dilweg Cos., who also owns The Power Building. 129 and 112 are both rumored to be under consideration for condo conversions. Crown Realty and Development of Irvine, CA is the party pursuing 112. The Interstae Tower and 112 are 50% vacant. 129 is 15% vacant. BofA leases a bunch of space there that they could easily do without IMO.

Apparently, 2nd tier markets such as Charlotte are in demand for companies with money to invest because they want to reduce dollars in stocks and top tier cities have little inventory for sale. Buildings with above average vacancies are good because the investors can make changes and increase the value fairly easily.

- graydog

Thanks for that update graydog....

:thumbsup:

A2

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I would be interested in knowing what First Citizens cost to build, and how much did the land cost, when it was built. Compared to the $77 million sold recently. It would be noteworthy to know what kind of profits these kinds of property transfers generate.

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