(CHARLOTTE, NC - November 24, 2021) – By Liz O'Connell – Staff Writer, Charlotte Business Journal
The Lowe’s Global Technology Center in South End was sold to an affiliate of New York-based Apollo Global Management (NYSE: APO) for $318 million on Monday, a representative told CBJ.
The $889 per square foot price smashed the previous sales record for a Charlotte office building, according to a source involved in the deal. “To be able to get really strong pricing like that I think is a really strong testament to the strength of the local economy, how investors view the city, how rents are continuing to grow in the market,” the source said.
Childress Klein Properties Inc. and Ram Realty Advisors, the sellers, received 18 offers for the Lowe’s Global Technology Center, a 23-story, 358,000-square-foot tower. Interest came from the U.S. and various regions around the world, prominently from Asia. “We had just under $6 billion of capital that bid on this,” the source said.
The previous record of $612 per square foot was set in last year’s sale of The RailYard in South End for a total of $201 million. The record for total price was set last year, too, with Truist Financial’s (NYSE: TFC) purchase of its headquarters building for $456 million, or roughly $470 per square foot.
JLL’s capital markets team represented the sellers. The team was led by Senior Director Chris Lingerfelt and Senior Managing Directors Ryan Clutter and Coleman Benedict.
“Childress Klein’s commitment to Charlotte is stronger than ever and we are excited to expand into South End and continue our partnership with Ram,” Paul Devine, Childress Klein’s Charlotte office partner, said in a press release. “Lowe’s decision to partner with us to create their Global Technology Center was a key driver in the design and implementation of this dynamic project. We are thankful that they chose our team to participate in this exciting expansion.”
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The tower at 100 W. Worthington Ave. is fully leased to Lowe’s Companies Inc. (NYSE: LOW) and will bring about 2,000 employees to the Lowe’s technology and e-commerce hub. Employees will move into the tower in the new year. The Charlotte Business Journal previously reported that Lowe’s will occupy 357,000 square feet of the tower. The first floor of the tower is separately owned with retail spaces and was not included in the sale.
“State-of-the-art, brand-new assets that are highly amenitized in compelling locations and markets have become incredibly sought after by domestic and international capital,” Clutter said. “We are seeing significant increases in capital targeting assets like Lowe’s Global Technology Center. We believe these assets will be more and more compelling over the next few years as these newer, highly amenitized office environments offer an attractive alternative to the work from home dynamic that transpired during the pandemic.”
ABOUT RAM REALTY ADVISORS
Ram Realty Advisors LLC acquires and develops retail, multifamily, and mixed-use properties in select high-growth markets throughout the Southeast. The investments are capitalized by Ram-sponsored discretionary private equity funds and institutional co-investment vehicles. Since 1996, Ram has deployed in excess of $3.5 billion of capital. Ram and its predecessor entities were founded in 1978. The company is headquartered in Palm Beach Gardens, Florida, and has offices in Tampa, Florida; Charlotte and Chapel Hill, North Carolina; and Nashville, Tennessee. www.ramrealestate.com
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David Klepser
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Ram Realty Advisors
dklepser@ramrealestate.com