ATLANTA, GA and CHARLOTTE, NC and WINSTON-SALEM, NC--(Marketwired - Dec 23, 2014) - Two investors have acquired the BB&T headquarters building in Winston-Salem N.C. for $60 million.
Charlotte, N.C. investor Ray Gee and Atlanta investor Tyson "Ty" Rhame partnered to acquire the 240,000 square foot, 20-story office tower as a long-term hold. BB&T Bank (Branch Banking & Trust), one of the largest financial services holding companies in the U.S., occupies the building under a long-term triple net lease.
Gvest Capital and Trinvest were the investment vehicles for Gee and Rhame, respectively. Inland Private Capital was the seller. The transaction closed Dec. 19.
At $250 a square foot, it is the highest per-square-foot price ever paid for a Winston-Salem office property. The property is expected to produce an annual return of about 7.25% before debt but after expenses.
Gee and Rhame acquired the asset under a leveraged transaction using a Delaware statutory trust structure. The buyers are selling stakes in the building to investors seeking a 1031 exchange transaction, which lets investors delay capital gains taxes on proceeds from recently-sold property by reinvesting in new property.
The building was attractive to the buyers because it is occupied through a 23-year lease signed with BB&T, a S&P creditworthy A-rated tenant. The new owners stated this is the last time the property will be sold.
"It is a generational investment for my family office," Rhame said. "Being part of BB&T and Winston-Salem is a winning combination."
"The long-term credit lease of BB&T in an attractive capital market provided the opportunity to create an investment product attractive to zero-cash-flow buyers with a low basis in the 1031 exchange market," Gee added.
Gvest Capital (http://gvestcapital.com) is a closely-held investment partnership that focuses on the acquisition, development and asset management of commercial, multifamily and single-family residential real estate assets. Based in Charlotte, N.C., its leadership includes experienced veterans of the real estate and financial world.
Trinvest is the real estate arm of Atlanta investor, philanthropist and environmentalist Ty Rhame's many enterprises. Rhame owns, or co-owns, a number of firms in a variety of industries including recycling, currency exchange, apparel, and many others. Recently appointed to the board of the U.S. Air Force Academy Endowment, he gives back to the community through his businesses, personally, and as president of the Rhame Family Foundation.