Oaktree Capital Nabs Charlotte CBD Office Tower for $134M

By Timea Papp

400 South Tryon

CBRE Capital Markets has brokered the sale of a 33-story, Class A office tower in the central business district of Charlotte, N.C. The property, known as 400 South Tryon, traded for $133.5 million, according to Mecklenburg County records.

Oaktree Capital Management acquired the asset from a partnership between DRA Advisors and Trinity Capital Advisors. Citizens Bank facilitated the transaction with $93.5 million in acquisition financing. The property previously traded in October 2014 for $61.3 million, Yardi Matrix data shows.

Nearing full occupancy

Located at 400 S. Tryon St., the building encompasses roughly 587,100 square feet and was 94.6 percent occupied at the time of sale. Some of the most recent tenants to join 400 South Tryon are Skillstorm (14,541 square feet), Document Technologies (10,111 square feet) and Driven Brands (9,654 square feet). Along with on-site property management services, amenities at the 1974-built tower include a new fitness center, 24-hour security, sundry shop and an attached parking garage.

A CBRE team of Patrick Gildea, Matt Smith, Will Yowell, Justin Parsonnet and Jay O’Meara represented the seller in the transaction. Harris Ralston, Jeff Ackemann and Jonathan Rice, also with CBRE, arranged the floating-rate, senior mortgage on behalf of the buyer/borrower.

“(The property) offers high-quality space in an amenity-rich, live-work-play environment, drawing a wide variety of users as shown by recent leasing. The building has also undergone extensive renovations featuring a modern lobby, new restrooms, one of the nicest building fitness centers in the Charlotte CBD and a variety of new, street-level retail space. Oaktree’s acquisition of 400 South Tryon is yet another indication of continued interest from institutional investors in the Charlotte office market,” Gildea said in a prepared statement.

Image via Google Street View