In a $23.8 million deal, Cobalt Property Group has sold an office building in downtown Charleston, S.C., to Highland Ventures, a separate account client of Insite Properties.
The 71,947-square-foot property at 134 Meeting St. is currently 93 percent leased and has a weighted average lease term of seven years, according to Cushman & Wakefield, which represented Cobalt in the transaction. The building’s anchors include international law firm K&L Gates and the South Carolina-based law firm Haynsworth, Sinkler & Boyd. Carolina Art Association and BNC Bank are also among the property’s tenants.
Cobalt acquired the asset in 2014 for $19.5 million. Built in 1987, the property underwent a renovation in 2015 that included the addition of a 1,702-square-foot fitness center with showers, new HVAC equipment with digital controls, as well as upgrades to the common areas such as the lobbies, restrooms, corridors and elevators.
Cushman & Wakefield’s Jared Londry, Rob Cochran and Nolan Ashton handled the sale on behalf of Cobalt Property Group. The Charleston-based company also owns other Class A office assets in the city. In 2017, Cobalt partnered with Garrison Investments to acquire a 252,000-square-foot portfolio from Holder Properties.
COVID-19’s impact on Charleston
While the COVID-19 pandemic has affected office markets throughout the U.S., the second quarter report for the Charleston office market from Cushman & Wakefield shows that the city has weathered the virus’ impact for now.
Charleston’s vacancy rate increased to 8.2 percent year-over-year, but also saw an increase in net absorption to 1.2 million square feet and a rise in asking rent to $27.05. Charleston’s asking rents are also rising, with some new projects hitting $40 per square foot.
However, the report also indicated that all these market indicators are expected to drop in the next 12 months due to the pandemic’s continued impact, as many companies looking for space are delaying the search and proposed projects are being pushed back.