Record-setting deal. Office building in fast-changing South End sold for $201 million
In a record-setting deal, a South End office building has sold for $201 million, as the area’s transition from a hub for nightlife into an extension of Charlotte’s business district continues.
Atlanta-based Cousins Properties purchased The RailYard, a 296,392-square-foot office building, according to Mecklenburg County real estate records and a Thursday news release from the firm that brokered the sale, CBRE.
Charlotte-based Beacon Partners, the previous owner, developed the complex, which opened last year off of South Tryon and West Bland street. It also contains 32,593 square feet of retail on the ground floor, including Rhino Market & Deli, STIR, North Italia and Orangetheory Fitness.
Per square foot, the sale price breaks a record for a non-medical office building in all of North and South Carolina, according to real estate experts.
There was competition from institutional investors across the country for the building, despite the coronavirus pandemic, Patrick Gildea, executive vice president at CBRE, said in the release.
“Charlotte is widely believed to be a resilient market long-term, and expected to be one of the first to recover after the pandemic,” he said.
‘A terrific story’
Mark Holoman, managing director of Cousins’ Charlotte portfolio, said the firm was drawn to the amenities and walkability in South End.
“We think it’s a terrific story, the growth of that part of our city,” he said.
The RailYard’s tenants include Allstate, EY (formerly Ernst & Young) and WeWork. Cousins does not have any material changes planned for the building.
Cousins also owns several prominent towers uptown, including the Nascar Plaza building and the Fifth Third Center, and developed the Dimensional Fund Advisors tower in South End, which opened last year.
The firm also purchased property across the street from RailYard, where Hot Taco and All American Pub are, for $28.1 million in November. According to an investor presentation, the company is considering a 600,000- to 700,000-square-foot mixed-use development for the site.
This story was originally published December 3, 2020 at 11:10 AM with the headline "Record-setting deal. Office building in fast-changing South End sold for $201 million."
