Arch Companies is pleased to announce that the firm has acquired Cambridge, a 350,000-square-foot office property located in Charlotte, North Carolina with its partner, Lakestar Properties, for $63.0 million. The property was constructed in 1990 and is positioned on a 50-acre park-like setting within University Research Park, one of the largest research and development parks in the United States.
Investing in a Bourgeoning Tech Scene
The property features high-end amenities including floor-to-ceiling windows, skylights, an open-air atrium, outdoor meeting spaces, ample parking and an on-site fitness center. In addition, the building provides its tenants with a redundant power supply, high floor loads, fiber lines and a resilient physical structure, making it an ideal location for mission critical and tech tenants. The property has convenient access to Interstate 85 and 485, two airports and a newly completed light-rail train and boasts a well-rounded tenant roster – 53% of tenants have investment grade credit and 59% of tenants are publicly traded.
“Cambridge is a strategically located property that is the ideal office campus for tech-focused tenants. The proximity to major interstates, the newly built light rail and airports makes this a great location for companies looking for local talent with easy access to national and international markets,” said Jeff Simpson, Managing Partner of Arch Companies. “I am confident that we will see great returns on our investment here and we look forward to the long-term success of this building and its robust tenants.”
The acquisition was financed with $50.4 million of fixed rate financing. Abe Katz and Mark Silbersher from Walker and Dunlop arranged for a first mortgage loan from Citigroup and a mezzanine loan from Morrison Street Capital.
Cushman & Wakefield Charlotte’s Rob Cochran, Jared Londry and Nolan Ashton, Cushman & Wakefield Atlanta’s David Meline and Samir Idris, and Bluegate Partner’s Mark DeLillo and Craig Callaway represented the seller, a partnership between affiliates of Atlantic Creek Real Estate Partners, Origin Investments, and Stream Realty Partners.
“This asset garnered a significant amount of interest from both institutional and private capital sources. The offering size and unique building features ultimately helped generate significant interest for a multi-tenant office in the highly coveted university submarket”, observed Londry.
In addition to this transaction, Arch Companies has recently acquired a majority interest in Savings Street Tower, a 11-story, 109-unit multifamily property located at 45 Savings Street, Waterbury, Connecticut. Savings Street Tower marks Arch Companies’ first acquisition in the greater Tri-State Area outside of New York City.
About Arch Companies
Arch Companies specializes in real estate investment and management, with a concentration on multi-family and mixed-use developments within the U.S. that have strong growth outlooks. The partners of Arch, Jeff Simpson and Jared Chassen, along with the Arch team have over 35 years of experience investing in and managing institutional real estate nationwide.