CHARLOTTE, N.C. -- Fifth Third Center has been sold and another uptown skyscraper, One Wells Fargo Center, is under contract, real estate sources say, underscoring the city s appeal to large investors.
Privately held real estate investment firm Parmenter Realty Partners of Miami is expected to pay about $170 million and close on the 30-story Fifth Third Center at 201 N. Tryon St next month, according to people familiar with the deal.
One Wells Fargo Center, meanwhile, is expected to sell for roughly $250 million, according to sources and the trade publication Real Estate Alert.
In the past two months, four properties worth more than $100 million have changed hands in Charlotte. A fifth property, BB&T Center, is going to be put on the market and could attract bids of around $125 million, according to sources.
What s significant, says veteran broker Ryan Clutter, is that investors not only have an interest in Charlotte real estate, but they also have the willingness and ability to close the deal.
Capital follows jobs in the office investment world, said Clutter, an investment sales specialist and executive vice president with the CBRE real estate company. Clutter helped broker the sale of the Coliseum Centre for $100 million last month.
CBRE brokered the sale of Fifth Third Center and One Wells Fargo Center and advised Bank of America on its sale of the Hearst Tower, which sold to Orlando-based Parkway Properties Inc. for $250 million. Bank of America, which is selling the 679,000-square-foot Fifth Third Center and will remain a tenant in the building, declined comment.
As the jobs come here, and as (Charlotte) has proven its resiliency, the capital follows that, Clutter said. For a 38-million-square-foot market to have five deals over $100 million is pretty remarkable.
Brokers have talked for years about institutional investors eyeing Charlotte properties, but sales remained scarce.
National investors have primarily been investing in what are called gateway cities: major metropolitan areas near coasts, such as New York and San Francisco. Those markets are considered safer bets for real estate investing. Moreover, the 2008 financial crisis left investors fearful that Charlotte was too reliant on the banking sector.
But despite heavy job losses, banks didn t lay off as many as feared. Brokers say Charlotte has also benefited by Chiquita Brands decision to move its global headquarters to uptown from Cincinnati.
Ted Lee, senior vice president with Spectrum Properties, said leasing and selling in the Charlotte office market has lagged that of Raleigh and Nashville in recent years. That s changing, he said.
You re definitely seeing Charlotte trading, said Lee, whose firm manages BB&T Center. Investors are buying at a great price. It s a great time to be a purchaser. Lee declined to comment on the prospect of the center being put up for sale.
The interest isn t universal, however. Investors may be ready to buy trophy properties, but lower-quality buildings, or those that aren t fully occupied or are set to lose tenants, are expected to continue to struggle.
Clutter declined to comment on any specific transaction. In general, he said, he expects Charlotte and the Carolinas will see more big-dollar deals in 2012.
Real estate is a fun business. It s like a snowball going down the mountain, he said. The momentum breeds more deals. As sellers witness other sellers having success, they get off the sidelines.
