Charlotte, North Carolina - New ownership of a large University City office building is putting significant capital in renovations to renew tenant interest.
401 McCullough Drive was acquired by Tempus Realty Partners out of Little Rock, Ark., for $12.3 million last month. The three-story, 199,571-square-foot building has sat empty since late 2015, when Allstate consolidated its university-area employees at Innovation Park.
Brad Grow and Chandler Knox at Colliers International are marketing the building on behalf of Tempus.
"It's been on the radar for big users but it's an older building that hasn't changed much," Grow said. "The plan is to reposition it and make it a new building."
Grow said Tempus will invest roughly $8 million in capital improvements at 401 McCullough Drive. Gensler has been appointed to complete design plans for the renovations. Work is expected to begin by late summer, with all renovations wrapping up by the first quarter of 2018.
Grow said he hopes the capital improvements will spur renewed interest in the building, a seven-minute walk to the future Lynx McCullough Station on the Blue Line Extension. He said the building, which sits on a 32-acre site fronting Interstate 85, can be expanded to 340,000 square feet, and that a parking ratio of seven spaces per 1,000 square feet can be achieved. 401 McCullough Drive includes high ceilings, dual power and fiber feeds, and three 1,750-kilowatt generators.
The building — which represents one of the largest blocks of contiguous available office space in the suburbs — is ideal for a single user, Grow said, and would likely not be subdivided more than once.
"It sets up well for a single tenant who wants growth potential, " he said, adding that prospective tenants are encouraged by the site's activity but want to see some of the renovation work get done.