A partnership between Connecticut-based Cornerstone Real Estate Advisers and New York metro-based LRC Properties closed on a Charlotte, N.C. office building with an acquisition loan from Bank of America.
NorthMarq Capital’s Keith Braddish arranged the $79.8 million for the purchase of 101 North Tryon Street, according to a press release from NorthMarq. The asset is in the heart of Charlotte, N. C. The partnership paid $107.8 million for the building in May, the Charlotte Business Journal reported.
The loan covers the partnership’s purchase of the 566,000-square-foot office complex, as well as additional costs including building upgrades and leasing commissions. The floating rate loan has a three-year interest-only period, according to NorthMarq.
“Realizing the inherent value of existing below market rental rates at the property along with the need for a capital infusion to upgrade the asset, the partnership will engage in a capital plan which will bring the asset up the standards of the top echelon of the class ‘A’ office market,” Mr. Braddish said in prepared remarks. “Bank of America provided a balance sheet loan which facilitates the acquisition as well as allowing future funding for these aforementioned capital upgrades as well as tenant improvements and leasing commissions.”
Bank of America happens to also be a tenant in the building, according to the Charlotte Business Journal, with a lease that ends in 2021 for 261,000 square feet.