Uptown Charlotte office tower handed back to lender after WeWork exits

CHARLOTTE — Commercial real estate firm The Dilweg Cos. has released an aging office tower in uptown Charlotte back to its lender.

Anthony Dilweg, CEO and founder, told the Charlotte Business Journal that the Durham-based firm handed First Citizens Bank Plaza, at 128 S. Tryon St., over to the lender on April 14. The company tried to restructure its financing tied to the property but couldn’t come to terms with the lender, Dornin Investment Group, he said.

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“We were looking to infuse about $30 million back into that (property), but we had to restructure the debt and the value and build it back up,” he said. “We didn’t come to terms. It wasn’t something that was of strong interest to (the lender).”

The tower took a hit to its occupancy earlier this year, after New York-based coworking and flex workspace company WeWork defaulted on its lease. Dilweg said negotiations between his firm and WeWork were unsuccessful and that the tenant vacated its space in March.