Cousins Buys 300 South Tryon — $317.5M Fully-Leased Uptown Charlotte Trophy Office

Uptown Growth Play: Cousins Adds Trophy Office to Charlotte Portfolio

Strategic purchase of 300 South Tryon

Cousins Properties is acquiring 300 South Tryon, a 638,000-square-foot lifestyle office tower in Charlotte’s Uptown, for $317.5 million, adding a fully leased, modern asset to its Sun Belt holdings. Built in 2017 and currently 100% leased, the property carries a weighted average lease term of six years, giving Cousins an immediate income stream and occupancy stability in a market the company characterizes as supply-constrained.

The Atlanta-based REIT says the asset complements its Charlotte growth strategy as occupancy and rents for lifestyle office accelerate amid virtually no new deliveries. President and Chief Executive Colin Connolly says the deal is immediately accretive to earnings and is being made at an attractive basis that enhances near-term earnings while strengthening future cash flows. Cousins points to improving market fundamentals in Uptown Charlotte as a driver for the purchase.

Cousins expects the fully leased 2017 building to provide durable cash flow and portfolio diversification, particularly given the six-year average lease term that reduces near-term rollover risk. The company frames the acquisition as consistent with its focus on trophy Class A office buildings in high-growth Sun Belt markets and as a way to leverage its development, leasing and management platform to extract operational upside.

Proceeds and asset dispositions

Cousins plans to finance the purchase with a mix of proceeds from non-core asset sales, debt financing and possible settlement of common shares previously issued on a forward basis under its at-the-market program. The company is under contract to sell Harborview Plaza in Tampa and a land parcel at 303 Tremont in Charlotte for combined gross proceeds of $63.2 million, moves that it identifies as contributing to the financing plan.

Company strategy and investor access

Founded in 1958, Cousins operates as a fully integrated, self-administered and self-managed REIT focused on Class A office in growth Sun Belt metros, pursuing a platform of trophy assets, development and opportunistic investments. The company directs interested parties to the Investors section of its website for an acquisition presentation and names Roni Imbeaux, Senior Vice President, Finance and Investor Relations, as a press contact.