ATCO Properties & Management, a Manhattan-based owner and operator of Class A commercial real estate, and Zapolski Real Estate, a Durham, NC-based real estate investment firm with offices in Napa, CA, secured their initial investment as a joint venture with the acquisition of 137 E. Franklin St. and private parking lot on the opposite side of Rosemary St. in Chapel Hill, NC for $26.2 million.
Known as the CVS Plaza, the 100,000-square-foot mixed-use property was constructed in 1973 adjacent to the University of North Carolina (UNC) in downtown Chapel Hill. Anchored by a 17,000-square-foot CVS on the ground floor and basement, the property is 96% occupied with approximately 65,000 square feet of office space leased by UNC for administrative and research offices. The property is the fourth largest commercial building in Orange County.
ATCO made the purchase through its city center retail estate joint venture program (ACCRE), a core-plus investment program that allows family offices and high net worth individuals to join ATCO in its acquisition of street retail condominiums, downtown office buildings, and select neighborhood shopping centers in preferred secondary markets such as Austin, TX, Charlotte, NC and Denver, CO, in addition to New York City.
ATCO presently owns and manages more than 35 buildings including notable Manhattan properties such as 555 Fifth Avenue, 40 Central Park South, 41 West 58th Street, 630 Third Avenue, 381 and 373 Park Avenue South.
Austin Williams of Crosland Southeast brokered the deal on behalf of the seller, Metro Consultants, which had owned the property for the last 37 years.
Please see CoStar Comp #3010503 for more information on the transaction.