Sale of 400 South Tryon; TCA enters new partnership with Oaktree Capital

May 17, 2018

Trinity Capital Advisors (“Trinity Capital”) announces the sale of downtown Charlotte’s 400 South Tryon office building to funds managed by Oaktree Capital Management, L.P. (“Oaktree”). Trinity Capital is retaining an ownership stake in the building and will be partnering with Oaktree to continue executing on its strategy for 400 South Tryon by offering a Class A office environment at Class B rents, and the best value for office space in downtown Charlotte.

Trinity Capital acquired the 33-story, 584,315 SF building in 2014. Ownership implemented a capital improvement plan that included a lobby and corridor renovations, chiller and cooling tower replacement, elevator renovations, the addition of a 4,000 SF fitness center with full-service locker rooms, and parking deck improvements.

Additionally, ownership implemented a full-scale retail renovation along the building’s Church Street corridor that attracted high-profile restaurant tenants: fast-casual B. Good’s first Charlotte location and two local favorites, Rhino Deli and Market and JJ’s Red Hots. The retail transformation, along with popular events like Yoga on the Deck and Movies on the Deck, have served as a catalyst on downtown’s Church Street, activating the corridor and offering tenants popular new amenities.

“Our goal from the beginning was to reposition this asset and reintroduce it to the market as a viable Class B alternative,” said Gary Chesson, Founding Partner at Trinity Capital Advisors. “Now, we’re turning away tenants due to lack of space. Everything about this building is different than it was in 2014 – every interior finish that a tenant would experience, the number of amenities available to tenants, and due to new surrounding development, the building’s location has gone from good to great. We believe that the building’s tenants and new ownership will continue to benefit from these improvements and we look forward to partnering with Oaktree to make 400 South Tryon the unquestioned value leader in downtown Charlotte. ”

Todd Liker, Managing Director at Oaktree, added, “As we continue to expand our income-producing, core-plus business through strategic relationships, we’re pleased to be partnering with an established operating partner with Trinity Capital for our first investment in downtown Charlotte. We believe this market offers an attractive live-work-play environment for today’s generation of office users. Additionally, we were attracted to 400 South Tryon by its high quality tenancy and stable cash flow characteristics – two essential characteristics for any investment we make in the real estate income space.”

Currently 95% occupied, the building’s major office tenants include Duke Energy, Driven Brands, and SkillStorm. 400 South Tryon is in the heart of downtown’s Charlotte’s Third Ward, steps away from Bank of America Stadium, BB&T Ballpark, Romare Bearden park, restaurants, and retail. 400 South Tryon will continue to be leased and managed by Trinity Partners.

ABOUT TRINITY CAPITAL ADVISORS
Trinity Capital Advisors focuses on the acquisition and development of institutional quality commercial real estate in the southeastern United States. The firm has invested over $2.1 billion acquiring and developing over 20 million square feet of the most successful workplace real estate projects in North Carolina, South Carolina, Tennessee, and Florida, including CBD office towers, industrial portfolios, suburban office parks, and mixed-use developments. Investments are capitalized through various Trinity Capital investment vehicles and partnerships with some of the country’s top institutional investors. For more information about Trinity Capital, please visit our website at trinitycapitaladvisors.com.

ABOUT OAKTREE CAPITAL MANAGEMENT
Oaktree is a leader among global investment managers specializing in alternative investments, with $121 billion in assets under management as of March 31, 2018. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at http://www.oaktreecapital.com/.