NY Investment Firm Pays $40M for Charlotte Office Building
The deal for Gateway Center follows Hamilton EQ’s entrance into the Charlotte marketplace with the purchase of seven buildings in Parkway Plaza in late February.
CHARLOTTE, NC—Hamilton EQ, an entity of Hamilton Equity Partners of New York City, has acquired the 10-story 901 West Trade St. office building here for $40.5 million. The deal increases the firm’s presence here after entering the Charlotte market in a multi-property deal less than a month ago.
Commercial brokerage firm CBRE reported the transaction for the 310,745-square-foot office building located within Charlotte’s Central Business District. The property is 78% leased by Bank of America. CBRE’s Patrick Gildea, Matt Smith, and Grayson Hawkins represented the undisclosed seller in the transaction. Hamilton EQ is the he acquisition arm for Hamilton Equity Partners.
“The quick resale of Gateway Center is evidence of Charlotte’s continued rapid improvement in real estate fundamentals, and therefore valuation,” says Gildea, executive vice president at CBRE.
Gateway Center is centrally located within Charlotte’s path of growth. The CityLYNX Gold Line extension, with phase two scheduled to deliver in 2020, will serve as an engine for economic growth with an anticipated 1.1 million or more square feet in new development, CBRE notes.
Immediately surrounding Gateway Center are several proposed and under construction office buildings, along with hotel and multifamily developments.
At a little more than 17 million square feet, the CBD accounts for approximately 40% of metro Charlotte’s office market. The CBD has consistently reported vacancies in the single digits and commanded higher rental rates than its suburban neighbors, while still remaining the only submarket with paid parking. Rental rates in the CBD are on the rise, CBRE reports.
The deal for Gateway Center follows Hamilton EQ’s entrance into the Charlotte marketplace with the purchase of seven buildings in Parkway Plaza in late February.
Trinity Partners, which was hired as the portfolio’s leasing team by Hamilton EQ, reported recently that Hamilton’s new holdings in Charlotte are located in the Airport submarket just off Yorkmont Road and minutes from Interstate 77 and Downtown Charlotte.
The buildings, 2, 3, 6, 7, 8, 11, and 12, total 368,871 square feet and are spread across more than 44 acres. The office park is home to respected tenants including Xylem, Roundpoint Financial and Jack Henry.
“We are very excited about this purchase,” Malkiel Svei, Hamilton EQ COO, stated in the Trinity Partners’ announcement. “We love the Charlotte market and are looking to purchase additional assets. We view this as an opportunity to continue the expansion of our ownership presence in the South East through the acquisition of a high-quality, institutionally run asset.”
Parkway Plaza will be managed in-house by their own asset services team, Hamilton EQ Management, led by Taylor Cole and Matthew Sexton. Trinity Partners’ office leasing brokers, Maddy Howey and Chase Merkel will handle leasing at the property.