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$100M Buys 526,000-SF Office Building

CHARLOTTE, NC-American Financial Realty Trust of Jenkintown, PA, buys the 92%-leased 101 Independence Center here from Atlanta-based Cousins Properties. The deal includes the assumption of $43.3 million in debt on the class A property, which is 68% leased by Bank of America through 2021.

By Brian K. Miller | Updated on July 30, 2004

CHARLOTTE, NC-Cousins Properties of Atlanta has sold 101 Independence Center, a 526,000-sf class A office tower here that is 92% leased. The $100-million transaction with Jenkintown, PA-based American Financial Realty Trust includes the assumption of $43.3 million in debt on the Downtown property at the intersection of Tryon and Trade streets. As part of the transaction, anchor tenant Bank of America, which leases 68% of the building (360,000 sf), agreed to extend its lease on 344,000 sf through the year 2021. In trade, the bank received a one-time, $5.7 million signing bonus.AFRT says it intends to prepay the assumed debt in the next 30 days. Including a loan prepayment penalty and the lease extension fee, AFRT estimates a capitalization rate (revenues less property operating expenses divided by total investment) on the investment of about 8.3% in 2005.

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