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BIRMINGHAM, AL-Allegiance Realty Corp., making a grand entrance into the market, has paid $25.1 million for the 278,000-sf Park Place Tower to the Archon Group LP. The Charlotte, NC-based buyer plans to put $1 million into additional upgrades.

“A great highlight to the deal is that the building is 53% occupied, but the existing tenant base is stable,” says Brett McDonough, Allegiance’s chief of acquisitions and project development. “The nearest roll is 2011 and it has good, high-quality tenants.” He tells GlobeSt.com that Allegiance is seeking a diverse tenant mix to add to the law firms and financial companies currently leasing space in the 15-story, class A building at 2001 Park Place North in the Downtown.

Allegiance CEO Christopher Smith says Park Place Tower was acquired from Irving, TX-based Archon, which had spent $2 million four years ago on upgrading the 26-year-old office building. He says the building fit the company’s mission to identify and acquire value-add assets and reposition them. “That can typically take anywhere from three to five years depending on the difficulty of the project,” he says.

Smith and McDonough say they’d like to make more investments in the area. “This is a dynamic region that shows a lot of growth and it’s one of the leading cities in the country with one of the lowest unemployment rates,” Smith says. “Once we enter a market, we aggressively pursue other opportunities so we’re still looking.”

McDonough says multi-tenant offices in secondary and tertiary markets are Allegiance’s main focus right now. Hal Kempson of CBRE/LJ Melody’s Charlotte office arranged the acquisition loan through CBRE Realty Finance of Hartford. Doug Connell of Grubb & Ellis Co.’s Atlanta office represented Archon. Allegiance has retained Harris Tynes Realty Group of Birmingham to lease the property.

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