Beacon Partners has sold a mixed-use development containing a nearly 200K SF office complex in Charlotte’s Lower South End.

The developer sold The Station at LoSo, a Class-A office property, for $91.8M to Corebridge Real Estate Investors and Crestlight Capital, according to a press release from JLL, which represented the seller.

The Station at LoSo encompasses two five-story office buildings located on 2.2 acres at 3700 and 3600 South Blvd. JLL calls the neighborhood one of the fastest-growing submarkets in the U.S. 

Beacon, Corebridge and Crestlight didn’t immediately respond to requests for comment.

Both buildings, which include ground-floor retail space, a fitness center, bike storage and outdoor terraces, were part of the first phase of the site’s development. Phase 2 is expected to begin this year and is slated to include residential space as well as amenitized outdoor spaces like a dog park and pool. A third phase will add 342 multifamily units and office space to the 15-acre parcel, the Charlotte Business Journal reported.

The property is 90% leased by tenants from myriad industries, including professional services, digital media, sports and entertainment, and construction and engineering.

 The Station at LoSo is directly next to a light rail station and is also surrounded by 10,000 existing multifamily units. More than 2,000 additional units are planned or under construction in the vicinity, according to the release. 

Beacon Partners will remain the office leasing representative and property manager for The Station at LoSo.

The Queen City’s office market has maintained momentum in the first half of the year as migration and job growth boosted investments, according to a Cushman & Wakefield report. A slew of large leases in the second quarter is sustaining “healthy demand,” with new leasing activity reaching about 932K SF. Financial institutions continued to lead in deals, representing more than half of quarterly new leasing activity. 

“Charlotte's office market is showing resilience with strong tenant demand in Tier 1 properties, particularly in South End and Uptown, though we're seeing a continued flight to quality as companies prioritize modern, amenitized spaces over older inventory,” CJ Liuzzo, director of capital markets at JLL, told Bisnow in an email.

He added that the market presents “selective opportunities in well-located assets” for investors, but that careful underwriting of building quality and tenant rosters are “essential in today's environment."

Charlotte had a 23.9% vacancy rate in the second quarter, down from its historic high of 25.9% during the same period last year, the report said. The Midtown-South End submarket had a 10.7% rate.