Grubb Properties and Foothills Capital have bought a six-story office building near the burgeoning Montford Drive restaurant district in south Charlotte.
Grubb plans to make the site its new headquarters.
The two Charlotte firms closed Thursday on the 118,650-square-foot building at 4601 Park Road, buying it for $9.7 million from an affiliate of Parkway Properties.
They announced Monday that they intend to invest $2.3 million in capital improvements and rebrand the building as The Park. It sits a block from the restaurants along Montford Drive and two blocks from Park Road Shopping Center.
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The area sits in a commercial real estate submarket that has been fairly depressed in recent years compared with others, Grubb Properties Senior Vice President Jonathan Nance said.
But he added that the area is poised for a comeback, with the array of restaurants along Montford Drive and retail developer Edens undertaking a major renovation at Park Road Shopping Center.
“It’s a submarket that’s an amazing location. It’s adjacent to SouthPark, and it’s adjacent to Myers Park,” he said. “There’s a lot of folks putting a lot of investment into that submarket, and we feel it’s going to make a turn in the right direction.”
The firms said they plan to add new rooftop solar panels, insulated windows and lighting, as well as boiler, chiller and cooling tower equipment to the building. Its vacancy rate hovers around 30 percent.
Tenants include OrthoCarolina and General Electric.
Nance said Grubb Properties, located off Fairview Road near SouthPark mall, will relocate its headquarters to the building.
“We can’t wait to become tenants ourselves with on-site property management and leasing,” he said.