Not everyone is in retreat mode during the current economic climate. A limited liability company managed by local developer Hunter Craig has purchased the Wachovia building on the Downtown Mall for $6.65 million.
The building at 119-123 E. Main St. is the Mall’s tallest structure, with Wachovia as the principal tenant. Other tenants include LeClair Ryan, The Ivy Group, Morin & Barkley LLP, Harren Equity Partners Inc. and Chapter 13 Bankruptcy Trustee. The properties will be managed by CB Richard Ellis – Charlottesville, which manages much of Craig’s other commercial property (including C-VILLE’s office). CB Richard Ellis – Charlottesville is now responsible for the management of approximately 845,000 square feet in Charlottesville and its surrounding areas, according to a press release from the company.
Hunter Craig has bought the Mall’s tallest building for $6.65 million.
Court documents show that Craig, who is also the only publicly identified investor in mega-development Biscuit Run, purchased the Mall property on September 30, just one day after Wachovia announced its intentions to sell itself to Citigroup. On October 3, however, Wachovia announced that it would instead merge with Wells Fargo, a San Francisco-based bank. Today Wachovia announced a third quarter loss of $23.9 billion.
"I am thrilled to continue as a steward of two Charlottesville landmarks, the Wachovia Building and the Bank of America Building; both buildings are full of Charlottesville history and have stood the test of time due to their cornerstone location, beauty, and functionality," says Craig, by e-mail. "The opportunity to acquire such landmarks transcends any concern I may have regarding the credit worthiness of a single tenant."
Though Wachovia was the major tenant, the bank sold the building in 2005 to First States Group LP for $4 million. That company appears to be a subsidiary of American Financial Realty Trust, a company that primarily owned bank buildings for Bank of America and Wachovia. Earlier this year, American Financial Realty Trust was bought by Gramercy Capital Corporation, a publicly traded real estate trust that in the last year has seen its stock decline to $1.35 a share from $26 a share. Gramercy did not immediately return a call for comment.