Financing secured to build a trophy office tower in Uptown Charlotte
JLL Capital Markets arranged financing for the construction of 600 South Tryon, a 25% pre-leased office development.
CHARLOTTE - July 28, 2022 – JLL Capital Markets announced today that it has arranged construction financing for the development of 600 South Tryon, a trophy office tower totaling 415,000 square feet that is 25% preleased in Charlotte, North Carolina.
JLL worked on behalf of the borrower, a partnership between the real estate business within Goldman Sachs Asset Management (Goldman Sachs) and Lincoln Harris, to secure the five-year, floating-rate loan through Square Mile Capital Management LLC.
As part of the 10-acre Legacy Union development, 600 South Tryon will continue the transformation of what used to be the Charlotte Observer site and further establish Legacy Union as the premier development in Charlotte. The 24-story tower will include outdoor terraces as well as state-of-the-art finishes and amenities. With 20,000 square feet of ground-floor retail, 600 South Tyron will flawlessly integrate with the other properties in Legacy Union, SIX50, Bank of America Tower and Honeywell Global Corporate Headquarters.
Located on the corner of South Tryon Street and West Brooklyn Village Ave, the property is six miles from Charlotte Douglas Airport and borders Uptown and South End, Charlotte’s two largest employment submarkets. 600 South Tryon's central location will allow tenants to access the highly desired restaurant, retail and entertainment offerings by car, bike, scooter or foot.
According to JLL’s Charlotte Office Insight – Q2 2022, Charlotte saw a 15% increase in leasing activity quarter-over-quarter, and the legal, finance and professional and business services industries accounted for more than 80% of all activity. Over 90% of all leasing activity was concentrated in Class A space, primarily within the Uptown, Airport and Ballantyne submarkets. In addition, average direct rental rates rose 3.1% in Q2 alone, driven by new construction in the urban core with rates approaching, and beginning to exceed, the $50 per square foot mark.
The JLL Capital Markets team representing the borrower was led by Senior Managing Directors Campbell Roche and Travis Anderson, Senior Director Taylor Allison, Associate Kristi Leonard and Analysts Tom Stewart and Ryan Pride.
According to JLL, “We are thrilled to be a part of further cementing Legacy Union as the premier office development in Charlotte with the addition of 600 South Tryon. Goldman Sachs and Lincoln Harris have redefined the Charlotte skyline and created a magnetic node for the city. 600 South Tryon will be another successful project for the partnership, Legacy Union and Charlotte.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources on JLL, please visit our newsroom.
About JLL
JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $19.4 billion, operations in over 80 countries and a global workforce of more than 100,000 as of March 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
About Goldman Sachs Asset Management Real Estate
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), they deliver investment and advisory services for the world’s leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of March 31, 2022. Driven by a passion for our clients’ performance, they seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Established in 1991, the Real Estate business within Goldman Sachs Asset Management is one of the largest investors in real estate with over $50 billion in assets invested since 2012 across the spectrum of investment strategies from core to opportunistic. Their global team invests across all sectors with deep expertise across the capital structure, in assets ranging from single properties to large portfolios, through senior mortgages, mezzanine debt and equity. Follow them on LinkedIn.
About Lincoln Harris
Lincoln Harris, together with Lincoln Property Company, provides clients with a national platform and unparalleled institutional resources, including commercial real estate development, investment and property management. Based in Charlotte, Lincoln Harris takes great pride in its reputation as one of the region’s most accomplished full-service commercial real estate companies. Lincoln Harris’ multi-disciplinary team has a long history of working through complex transactions and adopting innovative approaches to real estate problems. We develop and implement comprehensive national real estate programs for our clients and cultivate a sense of trust in the communities we serve and the individual transactions we service. To learn more about Lincoln Harris properties and services, please visit www.lincolnharris.com.