Idaho Firm Buys NC Office Building for $37M

GREENSBORO, NC-An Idaho-based firm has acquired Signature Place, a one-time three-story mall here that was redeveloped in the late 1990s into a 295,000-sf office property. The Meridian, ID-based DBSI Group of Cos. paid $37 million for the property. The seller was the redeveloper, JTL Capital of Dallas, TX.The property is located adjacent to Friendly Center, a 1 million-sf mall, and the 3 million-sf Green Valley Office Park, both of which are owned by Starmount Co. Signature Place is 95% leased; tenants include UBS; First Citizens Insurance; New South Federal Bank; Allied Interstate; CTX Mortgage; Bell Canada; Novartis Animal Health and Tanger REIT. A source familiar with the transaction tells GlobeSt.con that the purchase price represents an 8.25% capitalization rate based on current NOI. South Trust reportedly permitted assumption of the existing debt, which floats with Libor. The cash-on-cash return for the property is in the low teens, according to the source. Ted Gibbons, president of Investment Realty Advisors Inc. brokered both sides of the transaction. Investment Realty Advisors is a broker of single-tenant properties leased to investment-grade tenants. The company keeps offices in Bellevue, WA and Boca Raton, FL.