Charlotte-based Investicore Holdings USA LLC has purchased a 14-story office park in the city with plans to convert part of one of the buildings into a food and beverage area.
:quality(75))
The 42-acre office park, called ThExchange, sits off Interstate 77 and spans nearly 569K SF, the Charlotte Business Journal reported. The seller was Los Angeles-based firm Ares, which listed the site for sale in April. The property sold for $64M.
ThExchange complex is 60% occupied, but when counting out one entirely vacant building, its occupancy is 85%, the CBJ reported. Tenants include Conterra Networks, The Redbud Group, Adecco Staffing and Ragona Architecture & Design.
KW Commercial brokered the acquisition for Investicore, and CBRE represented Ares.
Investicore is planning a food and beverage area in one of the buildings as a way to draw in tenants, the CBJ reported. The firm also plans to assess other updates like outdoor activation and flexible workspaces.
Investicore bought the property based on its confidence in the Charlotte office market, the company’s founder, Dawie Swart, told the CBJ. Charlotte’s office sector, largely backed by a thriving financial services industry, is experiencing a period of strong recovery and rising rents, according to a second-quarter Cushman & Wakefield report.
Overall vacancy in the Charlotte office market was 23.9%, a decrease of 30 basis points quarter-over-quarter and marking the fourth consecutive quarter of decline, according to the report. The market saw a total of more than 931K SF of new leasing activity in Q2, with financial institutions accounting for more than half of quarterly new leasing activity.
Prior to Ares, The Dilweg Cos. owned the property, spending about $34M and two years to renovate it. The renovations, which finished in 2020, included a 30K SF tenant amenity building with a fitness center, indoor track and game room. All buildings also got new interiors, bathrooms, lobbies and hallways, as well as exterior refreshes.
The Dilweg Cos. turned the property over to Ares in 2024, after a $68.6M loan matured and became nonperforming.
)
)
)
)
)
)
)
)
)
)
)
)