CHARLOTTE, N.C.–(BUSINESS WIRE)–Holliday Fenoglio Fowler, L.P. (HFF) announces the financing of Capitol Towers, a state-of-the-art, two-tower office property totaling 477,704 square feet in Charlotte, North Carolina.
The HFF team worked on behalf of the borrower, Preferred Office Properties, to secure the 18-year, fixed-rate loan with New York Life Insurance Company. Loan proceeds were used to acquire the property in a sale also arranged by HFF.
Capitol Towers is an iconic office asset with destination retail concepts in one of Charlotte’s most renowned neighborhoods, SouthPark. This area is known for its upscale retail offerings, affluent neighborhoods and host of recreational areas, establishing itself as a premier location for residents and businesses alike. Capitol Towers is located at 4250 and 4350 Congress Street and benefits from excellent accessibility to the broader Charlotte market via Interstates 77, 85 and 485, the area’s primary transportation arteries. Uptown Charlotte is just six miles away and Charlotte Douglas International Airport is a short eight miles from Capitol Towers.
Completed in 2015 and 2017, the property comprises the North and South Tower, a retail building housing SouthPark Grill & Legion Brewing Company, a medical office building that is fully leased to Novant Medical Group, and a seven-level, 1,633-space parking structure. As one of Charlotte’s premier office assets, the LEED Gold property features high-quality new construction, best-in-class tenant buildouts and a market-leading amenity package, including a state-of-the-art fitness center, locker rooms with showers, an executive conference room, a co-working suite and a shared kitchen and snack area. Capitol Towers is 88.5 percent leased overall and features an impressive tenant roster anchored by investment grade tenants such as Albermarle, Sterling Capital Management LLC, Dixon Hughes Goodman LLP, JPMorgan Chase Bank, N.A. and more.
“As Preferred Office Properties’ first acquisition in Charlotte, Capitol Towers offers a trophy-quality asset and an entry point with scale in the highly desirable SouthPark submarket,” said Coco. “With this acquisition, they continue to build a best-in-class portfolio in select markets that demonstrate strong job growth and office fundamentals.”
HFF’s debt placement team representing the borrower included senior managing directors Ed Coco and Travis Anderson, director Matt Casey and associate Libby Malloy.
About Preferred Office Properties
Preferred Office Properties, LLC is a Maryland limited liability company and an indirect wholly-owned subsidiary of Preferred Apartment Communities, Inc. (NYSE: APTS), a real estate investment trust primarily involved in the ownership and management of multifamily properties across the United States. Preferred Office Properties was formed in 2016 to invest in high quality Class “A” office assets through acquisitions of operating properties and strategic, structured participation in new development.
About New York Life Insurance Company
New York Life Insurance Company (www.newyorklife.com), a Fortune 100 company founded in 1845, is the largest mutual life insurance company in the United States* and one of the largest life insurers in the world. Headquartered in New York City, New York Life’s family of companies offers life insurance, retirement income, investments and long-term care insurance. New York Life has the highest financial strength ratings currently awarded to any U.S. life insurer from all four of the major credit rating agencies**.
*Based on revenue as reported by “Fortune 500 ranked within Industries, Insurance: Life, Health (Mutual),” Fortune magazine, 6/1/18. For methodology, please see http://fortune.com/fortune500/
**Individual independent rating agency commentary as of 7/30/2018: A.M. Best (A++), Fitch (AAA), Moody’s Investors Service (Aaa), Standard & Poor’s (AA+)
HFF and its affiliates operate out of 26 offices and are a leading provider of commercial real estate and capital markets services to the global commercial real estate industry. HFF, together with its affiliates, offers clients a fully integrated capital markets platform, including debt placement, investment advisory, equity placement, funds marketing, M&A and corporate advisory, loan sales and loan servicing. HFF, HFF Real Estate Limited, HFF Securities L.P. and HFF Securities Limited are owned by HFF, Inc. (NYSE: HF). For more information, please visit hfflp.com or follow HFF on Twitter @HFF.