Barings Provides $51M Refinancing for Three-Building Adaptive Reuse in Charlotte

A joint venture between Third & Urban and TPG Angelo Gordon has secured a $51.4 million loan to refinance three buildings and 250,000 square feet of Lower Tuck, an adaptive reuse office and retail project in Charlotte, N.C. 

Barings provided the floating-rate, full-term, interest-only loan, while CBRE’s Brian Linnihan, Mike Ryan, Richard Henry and JP Cordeiro arranged the financing. 

CBRE’s Cordeiro noted in a statement that the new capital will help build out new speculative suites throughout the portfolio and add to the existing “live-work-play district” the project is attempting to inaugurate in phases. Lower Tuck was nearly 64 percent leased to 20 tenants at the time of the closing. 

“Ownership has delivered on its mission to retrofit these midcentury warehouses into a dynamic, mixed-use campus that appeals to a diverse set of tenants,” Cordeiro added. 

Located in West Charlotte, Lower Tuck is a 400,000-square-foot adaptive reuse project that will turn derelict warehouse space into new retail and office properties. 

This refinancing will go toward an 84,919-square-foot creative office building at 929 Jay Street; a nearly 70,000-square-foot building with 61,000 square feet of office and just over 8,000 of retail space at 1018 Jay Street; and a 92,530-square-foot building with nearly 84,000 square feet of office and 8,550 of retail at 800 Gesco Street. 

Ryan Naumes, Managing Director with Barings, said in a statement that his firm expects Lower Tuck to benefit from the trend of low supply in “burgeoning” submarkets like West Charlotte.

“Charlotte’s office market fundamentals are steadily improving, with limited new supply expected in the near term,” said Naumes.

Brian Pascus can be reached at bpascus@commercialobserver.com