A joint venture has acquired the CVS-anchored retail and office building at 137 Franklin Street in Chapel Hill for $26.2 million.
New York-based ATCO Properties & Management and Durham-based Zapolski Real Estate bought the 100,000-square-foot building and a private parking garage on Rosemary Street.
The building, which has a CVS pharmacy on the ground floor and about 65,000 square feet of office space, is 96 percent leased, according to a release announcing the deal. Floors two through seven are leased by the University of North Carolina-Chapel Hill.
The deal is the first joint venture between ATCO and Zapolski. ATCO owns and manages 35 buildings, including several buildings in Manhattan.
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“It’s the fourth largest commercial building in Orange County and one that dominates downtown Chapel Hill,” Todd Zapolski, founder and principal of Zapolski Real Estate, said in a statement. “After 37 years of ownership by the same party, we are excited to join our partners to bring a fresh approach to how the property can contribute to positive change for East Franklin and Rosemary Streets.”