CBRE Facilitates $51.4 Million Refinancing of 247K-SF Adaptive Reuse Portfolio

CBRE has arranged a $51.37 million loan to refinance Lower Tuck, a Class A adaptive-reuse portfolio totaling 247,223 sq. ft. in Charlotte. The portfolio was 63.6% leased to 20 tenants at the time of the transaction.

Brian Linnihan, Mike Ryan, Richard Henry and JP Cordiero with CBRE Debt & Structured Finance in Atlanta secured the floating-rate, full-term interest-only loan on behalf of the sponsor, Third & Urban and TPG Angelo Gordon. Barings provided the loan.

The portfolio consists of three single-story adaptive reuse buildings with retrofitted Class A office and retail space:

• 929 Jay Street is an 84,919-sq.-ft. creative office building with timber ceilings, 19-foot windows, and ample outdoor/patio space.
• 1018 Jay Street is a 69,774-sq.-ft. building with 61,000 sq. ft. of office and 8,089 sq. ft. of retail space. It features eight studio suites totaling 17,579 sq. ft., which are fully occupied, and two full-size suites with steel truss and timber ceilings, skylights, and an open-air courtyard.
• 800 Gesco Street is a 92,530-sq.-ft. building with 83,979 sq. ft. of creative office space and 8,551 sq. ft. of retail. It features 24-foot, exposed barrel vault and steel truss ceilings, floor-to-ceiling windows, and six recently delivered speculative suites, three of which are leased.

“Ownership has delivered on its mission to retrofit these mid-century warehouses into a dynamic, mixed-use campus that appeals to a diverse set of tenants,” said JP Cordiero, a Director with CBRE. “The refinancing will help fund the build-out of additional spec suites in the portfolio, which have performed well as companies are seeking high-end space in live-work-play districts without having to incur costly fit-outs.”

Located within the reimagined FreeMoreWest business district, Lower Tuck is home to MAS Tortilleria and offers a wide range of retail amenities within walking distance, including Hygge Coworking, Not Just Coffee, and Lucky Dog Bark & Brew, as well as notable restaurants like Noble Smoke and Bossy Buelah’s Chicken Shack. The portfolio is also adjacent to the Stewart and Irwin Creek Greenway Trails with direct walking access to Uptown and Bank of America Stadium.