East West Capital has acquired the Carolina School Supply Building in Charlotte, North Carolina. The building, located at 1023 West Morehead Street, has approximately 30,000 sf of office space and is currently 100% leased to four long-term tenants.
“We are delighted to enter the Charlotte market with the acquisition of such a unique and beautiful office building right in the CBD.” said Brian Nelson, Managing Partner. “Charlotte is experiencing very strong growth trends and the office real estate sector is poised to benefit, particularly since there is limited new supply being built to meet the increasing demand for space.”
Built in 1927, the building was originally a showroom and warehouse for the Carolina School Supply Company. It was renovated to serve as professional office space in 2000 and retains its character of heavy timber and masonry exterior.
The entrance to the building is via a stunning three-story open space formerly serving as the freight elevator shaft. The building offers tenants expansive views of Uptown and convenient access to I-77 at the foot of the exit.
“The high ceilings, exposed beams and wood provide ideal space for design firms and other dynamic and creative businesses. These unique features as well as its convenient location are why the building has been fully occupied since it was renovated.” said David Moritz, Managing Partner.
Prior to closing, EWC agreed to reconfigure the space in the building to meet the needs of three of the existing tenants. Two tenants will expand their space while one will contract. All three extended their lease terms, thus enhancing value in the building from day one.
According to CBRE’s Q2, 2014 report on Charlotte, direct vacancy for the office market is 12.2%, the lowest since 2008, while vacancy in the CBD is 8.6%, a decrease of 60 bps since last quarter and the lowest since 2009. Asking rates have increased for the sixth consecutive quarter and are the highest since 2009.
East West Capital is an Asheville, NC based real estate investment firm. The two principals have over 35 years of combined experience in real estate, finance and law.