KHP Likely to Convert 100-Year-Old Charlotte Office to Hotel

KHP Capital Partners has purchased a historic Charlotte building. The company paid $19.3 million for The Johnston Building, a 100-year-old uptown office building. Spaulding & Sly Investments was the seller. The Charlotte Business Journal reports Spaulding & Sly acquired the property from The Dilweg Co. in 2019 for $35.3 million. Mecklenburg County’s 2023 property revaluation appraised the building at $45.4 million.

KHP Capital Partners is a real estate private equity firm focused on investments in lifestyle and independent hotels. Due to its historic status, the Johnston Building will likely quality for tax credits should KHP convert it.

The Johnston Building is a 17-story, 172,300-square-foot office property built in 1924. When it opened, it was the tallest building in Charlotte. The Charlotte-Mecklenburg Historic Landmarks Commission designated it a historic landmark in 1992.

CBRE’s Patrick Gildea, Matt Smith and Robert Hardaway represented the building owner in the transaction. Gildea and Smith were brokers in the 2019 sale.