Development

How a Charlotte company doubled the price of this office tower in less than five years

A new lobby, restaurants on the ground floor and a major overhaul of building systems at 400 South Tryon appear to have paid off, as the building has sold for more than twice what it fetched in 2014.
A new lobby, restaurants on the ground floor and a major overhaul of building systems at 400 South Tryon appear to have paid off, as the building has sold for more than twice what it fetched in 2014. Courtesy of Trinity Capital

A new lobby, restaurants on the ground floor and a major overhaul of building systems at 400 South Tryon appear to have paid off, as the building has sold for more than twice what it fetched in 2014.

The 33-story gold-window building has been purchased by Oaktree Capital Management for $133.5 million, real estate records filed this week show. Charlotte-based Trinity Capital Advisors bought the building in partnership with DRA Advisors in 2014 for $61.3 million.

"Everything about this building is different than it was in 2014," said Gary Chesson, founding partner at Trinity. "Due to new surrounding development, the building’s location has gone from good to great."

Trinity will retain an ownership stake in the building going forward, and will continue to lease it. In the past four years, renovations at the building included upgrading and adding retail space on the Church Street-facing ground floor. That attracted popular eateries Rhino Market & Deli, JJ's Red Hots and B. Good. Renovations also included a new lobby, the addition of a gym and locker rooms for tenants and an overhaul of major building systems such as the chillers and elevators.

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Development in the surrounding blocks, including new luxury apartment towers like Ascent and Museum Tower, along with new restaurants, hotels and office buildings, have also boomed since 2014.

The building is 95 percent occupied, with major tenants including Duke Energy, Driven Brands, and SkillStorm. Its sale is the largest office transaction so far this year in Charlotte.

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“The south side of Tryon Street has grown into one of Charlotte’s most vibrant areas, transitioning from a predominantly business and financial district into one of the city’s most lively urban neighborhoods,” said Patrick Gildea, executive vice president at CBRE, which represented the seller.

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