Equus Capital Sells Charlotte Office Building

The Rotunda

An affiliate of Equus Capital Partners Ltd. has completed the sale of The Rotunda, a four-story Class A office building totaling 234,670 square feet, in the SouthPark office submarket of Charlotte, N.C.

The buyer was not identified and was described only as an Atlanta-based institutional real estate investment fund manager. Nor was the transaction’s dollar value disclosed.

Ryan Clutter and Chris Lingerfelt of JLL represented Equus in the sale.

The Rotunda underwent a $4.5 million amenity and capital improvement program, most of which was completed in 2019. The renovations included the restrooms, the main building lobby, the upper floor elevator lobbies, elevator cab interiors, upgraded lighting in the portico, replacement of the cooling tower, creation of a new amenity space, and activating the 4,500-square-foot south side outdoor patio overlooking Symphony Park.

The Rotunda is at Congress Street and Carnegie Boulevard, about 5 miles south of Uptown Charlotte.

The 5.3-acre property was developed in 1988 and sits on a two-level parking deck. On-site amenities include a full-service restaurant known as Village Tavern, a conference center and an outdoor seating area.

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SouthPark Mall, the area’s premiere shopping mall, is directly across from the property, and several hotels and dining options are within walking distance.

The sale was made on behalf of Equus Investment Partnership X L.P., a $361 million discretionary equity fund managed by Equus.

In a prepared statement, Equus Vice President Peter Shatz remarked that the company succeeded in executing their value-add strategy, as shown by their ability to increase rental rates by 25 percent since acquiring The Rotunda in 2017.

Along with Shatz, Christopher Locatell, senior vice president of dispositions, oversaw the transaction for Equus.

Charlotte office market’s ups and downs

The Charlotte office market is characterized currently by a strong development pipeline of about 3.8 million square feet (about half of which is preleased), accelerating leasing activity and rental rate increases, according to a second-quarter report from Avison Young.

The 4.5 million-square-foot SouthPark office submarket has a Class A vacancy of 17.0 percent and saw negative net absorption of nearly 20,000 square feet in the second quarter, Avison Young reports.

In a high-profile lease, The Bank of London signed for 40,000 square feet at One Independence Center in Charlotte, just the company’s second U.S. location, the other being in New York City. JLL represented Crescent Communities, the building’s owner, and Savills represented the tenant.