CHARLOTTE— Parmenter Realty Partners has secured $119.8 million to acquire Fifth Third Center in Downtown Charlotte. CBRE achieved aggressive interest rates.
CBRE Capital Markets vice chairmans Charles Foschini and Christian Lee, alongside vice president Christopher Apone negotiated the financing on behalf of Parmenter Realty Partners. CBRE’s Atlanta and Charlotte DEF teams assisted Foschini and provided representation to the seller to market the asset and negotiate the sale transaction.
“The cost of capital even when combining a mez and a primary lender were far below what most folks would deem to be available in the market,” Foschini said. “That was a factor of two things: the strength of Parmenter and its operating acumen -- and its ability to put real equity into the deal -- and the quality of the asset and overriding strength and resiliency of the Downtown Charlotte market.”
The two-part financing includes a loan secured through SunTrust for a three-year term and interest-only amortization. A mezzanine loan provided by Redwood Commercial Mortgage Corporation. Foschini says Charlotte weathered the recession better than most other markets in the U.S. and has both grown and diversified beyond its banking core.
“Parmenter was capable of putting in the required equity up front, which allowed them to secure some very aggressive rates on the bank financing,” Foschini said. “On a going forward basis the additional financing will be provided to allow for the leasing of the Wachovia space that will soon be vacant in the building. That space will be the absolute prime contiguous class A corporate office space available in the submarket -- and given the iconic nature of the building some may say the Southeastern United States.”
Located at 201 N. Tryon St. here, Fifth Third Center is a 678,715-square-foot class AA office building built in 1997. At the time of closing, the property was 98% leased with key tenants including Bank of America, McGuire Woods, Fifth Third Bank and Carousel Capital.
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