Highwoods Properties Inc. has agreed to acquire Advance Auto Parts Tower, a 20-story, Class A+ office asset in Raleigh, N.C. The Triangle Business Journal identified the owner as Lionstone Investments, which developed the building in partnership with Kane Realty Corp., the property’s manager.

Highwoods plans to fund the acquisition of Advance Auto Parts Tower “on roughly a leverage-neutral basis” using proceeds from the recent $145 million sale of three office buildings in Tampa, Fla.

Subject to customary closing conditions, the deal is scheduled to close in the next 30 days. The buyer will be depositing $20 million in earnest money.

A Highwoods spokesperson declined to provide additional information on the pending transaction.

A Class A+ office building

The 346,000-square-foot, LEED Gold–certified tower came online in 2020. It features 11 floors of office space atop eight levels of parking, as well as roughly 8,200 square feet of retail. The property was fully leased at the end of 2024, with a weighted average lease term of 8.2 years.

Advance Auto Parts Tower is in the North Hills submarket, with a street address of 4200 Six Forks Road or 4000 Front at North Hills Street. The building is immediately adjacent to CAPTRUST Tower, a 300,000-square-foot Class A+ office property that is also owned by Highwoods.

At the end of 2024, the REIT’s portfolio encompassed 27.2 million square feet across several U.S. markets, while its development pipeline totaled 1.6 million square feet. One of the underway projects is a 642,000-square-foot mixed-use development in Uptown Dallas that centers on a 26-story office tower.

Still recovering

The Raleigh-Durham office market seems to be largely in recovery mode right now, based on a fourth-quarter report from Avison Young.

For example, the Six Forks Road submarket has 1 million square feet of total availability, against an inventory of 4.8 million square feet. This is at least better than the ratio for the two metros overall, which is 14 million square feet available, compared with an inventory of 59 million.

A remarkable twist is that Class C space is seeing the lowest availability of all product classes, at 5.4 percent.

Still, Avison Young reports, trophy properties remain in a class by themselves: “Trophy property rates continue to be significantly higher than Class A space. Despite availability for trophy properties being high, at 44.5 percent, asking rental rates are unlikely to come down in 2025 as owners are still hoping to make their office investments work.”

The post Highwoods to Acquire Raleigh Office Tower appeared first on Commercial Property Executive.

Key life science clusters continue to thrive, even amid general economic challenges, because of their dependence on direct research and face-to-face collaboration.

“Unlike other industries where companies can operate remotely, life sciences rely heavily on hands-on research and in-person collaboration—lab work simply can’t happen over Zoom. This commitment to physical spaces has kept demand in established life sciences clusters,” Sonia Taneja, managing director for King Street Properties, told Commercial Property Executive.

While the life science construction pace has slowed in 2024, with only 2.2 million square feet breaking ground compared to 11.4 million square feet in 2023 and 16 million square feet in 2022, the sector has recorded substantial deliveries in previous years. Between the start of 2019 and October 2024, some 36.6 million square feet of lab space came online, including 10.5 million square feet in 2021 and 7 million square feet in 2020. This historical context underscores the robust foundation of the life sciences sector, which continues to support established clusters despite the general sluggishness.

“The life science real estate sector is at a crossroads, with challenges but also signs of recovery. Venture capital deployment is expected to increase as macro conditions improve. However, we should expect varied recovery timeline across different markets and submarkets,” said Maddie Holmes, senior research analyst at JLL.

Following the wave of new supply in 2024, Holmes added, “the new supply outlook improves significantly for 2025 and beyond. This respite in new supply will hopefully give the market some breathing space and the ability to absorb the current oversupply.”

Leveraging CommercialEdge data and expert insights, we delve into the dynamics driving these thriving markets, highlighting how their life science pipelines shape the broader landscape of U.S. commercial real estate.

Boston

Boston solidified its reputation as a leading life sciences hub, boasting a significant volume of construction activity that keeps it at the forefront of the industry.

Between 2019 and October 2024, developers broke ground on 16.8 million square feet of life science space across 60 properties, 5.7 percent of its existing inventory, CommercialEdge data shows.

The market’s strong life science development pipeline reflects ongoing demand, with over 680,000 square feet in construction starts in 2024 alone. In recent years, Boston has significantly expanded its pipeline, with developers breaking ground on 2.5 million square feet in 2023 and 6.7 million square feet in 2022.

From 2019 to October 2024, Boston saw the delivery of more than 10.5 million square feet of new lab inventory, including 2.8 million square feet in 2024, 2.1 million square feet in 2023 and 2.6 million square feet in 2022. This consistent development makes Boston an attractive option for life sciences companies seeking high-quality lab space, particularly as construction slowed in other markets.

Boston’s leadership in life sciences is bolstered by its exceptional talent pool and dynamic innovation ecosystem. World-class research institutions like Harvard and MIT attract top-tier professionals and encourage collaboration with cutting-edge research teams, making the city a natural choice for companies across the life sciences spectrum.

“Innovation tends to cluster around major research and educational institutions, which is why markets like Boston, San Francisco, San Diego and Raleigh-Durham continue to attract lab and bioscience companies,” Taneja noted.

San Francisco

San Francisco maintains its role as a top-tier life sciences market, driven by strong development and demand for lab and biotech space. Between 2019 and October 2024, life science construction starts totaled close to 9.1 million square feet across 37 properties, accounting for 4.8 percent of its total inventory. Recent development has seen steady groundbreakings, with 190,000 square feet started in 2024 and 2.5 million square feet in 2023 as well as in 2022.

CommercialEdge data highlights that lab space deliveries in San Francisco totaled 6.7 million square feet across 30 properties from 2019 to October 2024, accounting for 3.6 percent of total inventory. In 2024 alone, nine properties totaling 1.6 million square feet was completed, following deliveries amounting to 2 million square feet in 2023 and 2022.

A key factor in San Francisco’s growth is the ongoing shift toward high-quality, purpose-built lab spaces, Taneja elaborates. Companies are increasingly seeking facilities designed to meet the specific demands of life sciences operations, from structural reinforcements to specialized HVAC systems, rather than relying on converted office space. This trend, combined with anticipated growth in pharma research funding, suggests a favorable outlook for absorption in the metro.

San Diego

Third on our list with 5.7 million square feet of life science construction starts across 33 properties as of October—accounting for 5.1 percent of total inventory—San Diego is strengthening its position as a major hub in the life sciences sector.

The market has maintained a steady development pace, totaling 68,500 square feet in new lab space construction starts in 2024, following 1.7 million square feet across nine properties in 2023 and 400,000 square feet in 2022.

With life science deliveries totaling 3.6 million square feet between 2019 to October 2024—3.2 percent of the market’s inventory—San Diego continues to expand its offerings for biotech and life sciences tenants, with 2.1 million square feet completed in 2024, 310,000 square feet in 2023 and 343,000 square feet in 2022.

Its supply-to-demand ratio, measured by active tenant demand and total availability, stands at 4.0 percent, reflecting a tightening pipeline amid high interest from life sciences firms, JLL research shows.

Additionally, Los Angeles and Orange County are emerging as vital life sciences hubs, particularly in medtech, bolstered by robust healthcare networks and top research institutions. While these areas face supply constraints that limit immediate expansion, the high demand suggests strong potential for future growth.

Philadelphia

Philadelphia is emerging as a significant player in the sector, with 3.1 million square feet of lab space construction starts across 12 properties as of October, or 1.4 percent of existing inventory.

The market saw a strong year in lab space development in 2023, when 1.2 million square feet across three properties broke ground. According to CommercialEdge data, three properties totaling 900,000 square feet broke ground in 2022.

Life science deliveries totaled 1.1 million square feet across seven properties in the 2019-October 2024 interval, representing 0.5 percent of the market’s inventory. Three projects totaling 750,000 square feet came online in 2023, while 2022 saw the completion of four assets encompassing 369,000 square feet.

The market’s growth is driven by strengths in gene therapy and biomedical research. Its access to top research institutions like the University of Pennsylvania and Children’s Hospital of Philadelphia draws biotech firms and talent. Strong venture capital investment and relatively affordable real estate further boost its appeal, making Philadelphia an attractive alternative to pricier markets like Boston.

Raleigh-Durham, N.C.

The North Carolina metro is making strides in the life science arena, amassing more than 2.6 million square feet in construction starts across 18 properties as of October, accounting for 2.9 percent of its total inventory.

The market has seen a total of 517,165 square feet initiated year-to-date in October, alongside significant lab space construction starts in prior years, including 224,000 square feet in 2023 and 823,000 square feet in 2022.

Life science project completions totaled 1.3 million square feet across 10 properties from 2019 to October 2024, accounting for 1.5 percent of the market’s inventory. In 2024, deliveries encompassed 224,000 square feet across two properties, following a 100,500-square-foot asset in 2023 and two properties totaling 363,249 square feet in 2022.

One of Raleigh-Durham's key advantages is its affordable cost of living combined with a growing talent base, making it an attractive destination for life sciences companies.

“As early-stage companies receive funding and established firms expand, they are more likely to grow within their current markets or seek out additional life sciences hubs to support their work,” said Taneja.

Seattle

An already established player in the life sciences sector, Seattle recorded 1.8 million square feet of lab space construction starts across nine properties between 2019 and October 2024, 1.0 percent of its total inventory. While no new projects broke ground in 2024 or 2023, 2022 saw developers start on 1.1 million square feet across five properties.

Meanwhile, developers delivered a total of 1.8 million square feet of lab space across eight properties from 2019 to October 2024, accounting for 0.9 percent of the market’s inventory. In 2024 alone, 393,000 square feet was completed across two properties, while two properties totaling 443,000 square feet were delivered in 2023.

A significant advantage for Seattle lies in its fast-growing and affordable biotech labor pool, which attracts companies looking for skilled talent at competitive costs, Holmes pointed out. This emerging workforce, coupled with the metro’s strong focus on innovation and research, positions Seattle as an appealing destination for life sciences firms aiming to establish or expand their operations in a supportive environment.

The post The Most Active Life Science Markets in the US appeared first on Commercial Property Executive.

Amgen will invest $1 billion to expand its drug manufacturing operation in Holly Springs, N.C., adding a second multi-drug substance plant at the site.

The company initially invested $550 million to build a 350,000-square-foot facility in 2021. Construction began in March 2022 and, according to a recent article in the Triangle Business Journal, that plant will be operational in 2026.

Amgen aims to bolster its global manufacturing efforts, maximizing output, and the Holly Springs plant will play a central part in that strategy, CFO Peter Griffith told analysts at Citi’s 2024 Global Healthcare Conference in Miami, as reported by WRAL News. The company focuses its research on inflammation, oncology, rare diseases and general medicine.

READ ALSO: Why the Life Sciences Boom Is Not Likely to Bust

North Carolina’s Economic Investment Committee approved a Job Development Investment Grant that will reimburse Amgen up to $4.9 million yearly across the grant’s 12-year duration. The project is expected to grow the state’s economy by $3.6 billion throughout that period. When fully operational, more than 720 jobs will be generated across both facilities.

The firm owns nearly 109 acres at 4130 Friendship Road, according to Wake County records, and the two plants are slated for delivery at that site. The property is part of the 650-acre CaMP Helix, a master-planned manufacturing and life science park located some 25 miles southwest of downtown Raleigh, N.C.

Life science development in Raleigh-Durham

More than 650 life science companies operate in the Research Triangle Region, and within the past three years, firms have invested some $4 billion in life science projects throughout Wake County.

One such project is Trinity Capital Advisors and Starwood Capital Group’s Spark LS, which is set to comprise 1.5 million square feet of life science and retail upon delivery. Phase one, encompassing 525,000 square feet, debuted last year.  

And, this summer, Japan-based Kyowa Kirin earmarked $530 million for a 171,700-square-foot facility in Sanford, N.C., that broke ground in September. When operational in 2027, the plant will aid Kirin’s development and production of biological therapies for patients with rare illnesses.

The post Amgen Eyes $1B North Carolina Expansion appeared first on Commercial Property Executive.

Collectively, the property is known as Crossroads Corporate Park, including Building I (79,100 square feet), Building II (98,400 square feet) and Building III (121,500 square feet). The properties, all of 1990s vintage, are 97 percent leased, with the Wake County Public School System taking a vast majority of the space.

The school system first occupied the buildings in 2011 under a lease that does not expire until 2034, and which includes annual rent escalations. About a third of Building III is leased to Jacobs Engineering, and a small percentage of that building is vacant (the other two are fully occupied by the school system).

The buildings’ occupancy is thus much higher than the average of office buildings in the area. Occupancy in the area averages 77.9 percent, and new leases coming within six months of expiring leases in the area pull in 1.5 percent less rent, according to CommercialEdge data.

READ ALSO: When Office Meets Hospitality

Menlo Equities acquired the three buildings in 2018, the same source indicates. Loans for each building, all held by PNC Bank, reached their maturity around the time of the most recent sale.

The buildings are low-rise, two stories each. Amenities include tenant in-suite restrooms and redundant power. The school district uses them both as operational headquarters and public-facing service centers with roughly 1,200 parking spaces.

Easterly in acquisition mode

Washington, D.C.-based Easterly has been an active buyer of government-leased assets this year, inking such deals in the third quarter as the August acquisition of a 193,100-square-foot outpatient facility leased to the Department of Veterans Affairs in Jacksonville, Fla. It was the final property to be acquired in a 10-property portfolio, all of which are fully leased to the VA.

In September, the company acquired Northrop Grumman-Dayton, a facility that has been occupied by Northrop Grumman Systems Corp. since 2012 and which incorporates robust security enhancements, such as secure design standards, access control systems and security cameras. The property is adjacent to Wright Patterson Air Force Base in Ohio and its Air Force Research Laboratory headquarters, as well as the Air Force Institute of Technology.

By the end of the third quarter, the REIT solely, or as part of a joint venture, owned 95 properties in the U.S. encompassing about 9.3 million square feet, according to SEC filings. Easterly maintains a proprietary database that tracks about 8,500 leases totaling roughly 200 million square feet and includes substantially every major U.S. government-leased property that meets the company’s investment criteria. The database also includes information about the ownership of such properties.

In October, the company acquired a 104,136-square-foot facility, also leased to Northrop Grumman, in Aurora, Colo., immediately west of Buckley Space Force Base. About 70 percent of the three-floor buildout is under secure design standards. Buckley SFB provides strategic and theater missile warning to the U.S. and its allies.

Easterly’s holdings feature a long list of tenants, including the aforementioned VA and Northrop Grumman, but also the FBI, IRS, EPA, FEMA, FDA, DEA, Department of Transportation, Department of Justice, Social Security Administration, U.S. Citizenship and Immigration Services, as well as Immigration and Customs Enforcement, among others.

The post Easterly Government Acquires Raleigh-Area Office Campus appeared first on Commercial Property Executive.

Rockpoint and Oppidan Investment Co. have sold the 233,818-square-foot Building I at their $100 million Apex Commerce Center, a four-building industrial property in Apex, N.C. LaSalle Investment Management acquired the Class A asset, while JLL represented Rockpoint.

The duo broke ground on the 847,171-square-foot park in 2022. Building I came online one year later. Apex Commerce Center’s other three facilities are slated for occupancy between July and September 2025.

The rear-load Building I features 32-foot clear heights, 60-foot speed bays and 180-foot truck courts. Two drive-in doors are available, as well as 12 dock-high doors with the option of adding an extra 37.

READ ALSO: Industrial Demand Slips, But Avoids a Slump

Located at 1251 Burma Drive, the facility is about 6 miles from North Carolina Route 540, which is currently undergoing an expansion meant to extend the thoroughfare, looping around the Greater Raleigh area. The Research Triangle Park and the Raleigh-Durham International Airport are roughly 21 miles north.

JLL Senior Director Dave Andrews and Senior Managing Director Pete Pittroff led the team that represented Rockpoint in the transaction.

Rockpoint’s industrial strategy

Earlier this month, Rockpoint and Portman Industrial disposed of Camp Hall Commerce Center’s Campus 4, a 1.2 million-square-foot facility in Ridgeville, S.C. Stockbridge acquired the asset, which was fully leased to Volvo at the time.

Last month, Rockpoint sold its interest in a two-asset industrial park totaling 243,000 square feet in Otay Mesa, Calif., next to the Mexico border. The firm developed the campus in partnership with Badiee Development—which subsequently purchased it.

Raleigh-Durham’s steady industrial investment

Greater Raleigh-Durham witnessed a spike in industrial transactions during the third quarter, a CBRE report shows. Prologis was active in the market with the $80.2 million acquisition of the Alexander Commerce Park in September. Trinity Capital Advisors and Nuveen Real Estate sold the 441,072-square-foot campus.

Stoltz Real Estate Partners—as part of a 25-asset portfolio deal spanning Tennessee, Georgia and North Carolina—purchased two properties in Raleigh-Durham from Dogwood Industrial Partners. Spanning 820,000 square feet, the duo traded for $97 million.

The metro’s industrial vacancy rate dropped 20 basis points quarter-over-quarter—the first tightening since June 2023—landing at 5.9 percent in September, the report goes on to show. The decrease may be attributed to Raleigh-Durham’s industrial pipeline, which prior to the third quarter reached its lowest level since the first half of 2021.

The post LaSalle Buys Raleigh-Durham Industrial Asset appeared first on Commercial Property Executive.

AW Property Co. has obtained $55.2 million in acquisition financing for a North Carolina medical office portfolio totaling 297,500 square feet. The nine properties are in Burlington, Durham and Greensboro.

JLL worked on behalf of the borrower and placed the 10-year, fixed-rate loan. The Guardian Life Insurance Co. provided the note, according to public records show.

The firm acquired the portfolio with an average vintage of 2006 from Healthcare Realty in July. The seven Guilford County assets changed hands for a combined $79.4 million, public records also show.

The medical facilities were 99 percent leased at the time of sale to healthcare systems and independent physician practices, with credit tenants representing 73 percent of in-place income. Some of the companies occupying space within the portfolio include Cone Health, Duke Health and UNC Health.

READ ALSO: Why the Medical Outpatient Sector Is Poised for Growth in 2025

Located on or adjacent to hospital campuses, the traded properties include:

• Cone Health Neurology Clinic, a one-story building in Greensboro
• Church Street Medical Park, a three-building campus in Greensboro
• A two-story facility at 2001 N. Church St. in Greensboro
• Wesley Long MOB, a three-story building also in Greensboro
• Alamance Eye Center, a 2007-completed property in Burlington
• UNC Family Medicine Center, a medical facility in Durham
• Duke Medical Center in Durham

JLL Senior Managing Director Travis Anderson and Senior Director Anthony Sardo led the Capital Markets Debt Advisory team representing the borrower.

MOB investment activity set to grow

The medical office real estate sector remains strong, with outpatient demand projected to rise by 26 percent over the next decade, according to a Savills report. Additionally, economic conditions, such as interest rate cuts, are likely to stimulate further investing in medical office buildings.

Earlier this week, Onicx Group acquired Trinity Oaks Medical Arts Building, a two-story, 31,000-square-foot asset in Trinity, Fla. Part of a three-building BayCare Health System campus, the property came online in 2008.

The post AW Property Lands $55M for MOB Portfolio appeared first on Commercial Property Executive.

Smoky Hollow is situated within Raleigh’s Glenwood South neighborhood and comprises The Line, a 283-unit Class A apartment community, and 421 N. Harrington, a highly amenitized 229,000-square-foot office building. The latter features approximately 40,000 square feet of ground-floor retail, including a mix of experiential restaurants and shops.

The financing from Barings has a five-year term. JLL’s Travis Anderson, Colby Mueck and Warren Johnson advised the sponsorship on the financing.

The asset includes 778 parking spaces and four elevators. According to CommercialEdge, the market has a population density of 3,450 people per square mile and a compound population growth rate of 1.2 percent.

Raleigh’s office market is transforming

“Today’s office tenants are gravitating toward energized and activated mixed-use destinations that prioritize connectivity, entertainment and hospitality, as well as offer the long-term appeal of having a curated mix of retail and restaurants right outside the office,” Kimarie Ankenbrand, managing director at JLL, told Commercial Property Executive.

“Raleigh’s office market is entering a transformative period, driven by the elongated pause of new development breaking ground and robust tenant demand for the newer and activated product,” Ankenbrand said. “Last quarter, we saw some of the strongest levels of leasing activity in highly amenitized, Class A office buildings. Looking ahead, we expect competition for existing Class A and trophy office space to increase as the market awaits the delivery of new product.”

According to Arnold Siegmund, landlord representative principal at Avison Young, mixed-use properties with Class A office space like Smoky Hollow continue to perform extremely well overall as tenants are looking to be in the center of the action with everything at their fingertips.

READ ALSO: Why the Office-to-Lab Conversion Trend Will Last

“The Raleigh office market has also benefited from North Carolina’s population boom, one of the five fastest-growing states in the country, with the Raleigh-Cary population increasing by 0.7 percent over the past year,” Siegmund said.

Siegmund added that the Class A office in the Raleigh-Durham market is taking center stage as trophy assets seek 65.1 percent more in rent than Class A assets for marginally better amenities and greater product quality.

“Smoky Hollow benefits from a high-quality local landlord, direct access to various retail and entertainment options to attract workers into the office, and a desirable location near Raleigh’s urban core and extensive workforce,” Siegmund said.

The transactions highlight the strength of the economy in the Raleigh market, according to Marc DeLuca, regional president & CEO, Eastern U.S., for KBS.

“Growing companies are gravitating toward high-quality office space with active retail, restaurant and entertainment to support their efforts to attract and retain the best employees,” DeLuca told CPE.

“Well-located, top-tier commercial office properties provide growing companies with a strategic advantage when meeting the workplace needs of both new and current employees.”

A busy year for office leasing

The deal continued a busy year of office leasing in Raleigh.

In late September, KBS Realty Advisors and Kane Realty Corp. inked two leasing agreements totaling 31,659 square feet at Bank of America Tower, a Class A office building.

Intelligent asset management solutions provider Brightly Software by Siemens signed a 28,658-square-foot agreement. The company will establish its new global headquarters on an entire building floor, also home to Siemens Industry Inc.

In late July, a joint venture between Edgewater Ventures and Northridge Capital purchased Landmark at North Hills, a two-building Class A office campus totaling 166,653 square feet.

JLL Capital Markets negotiated on behalf of the seller, BGO, which worked on behalf of an institutional investor. According to CommercialEdge, the office buildings changed hands for $21.3 million. The same source shows that Sun Life Financial originated a $14.8 million acquisition loan for the buyer.

Landmark at North Hills includes two five-story office properties at 4601 Six Forks Road, connected via a sky bridge. The office properties have four passenger elevators and 830 vehicle parking spots. Initially completed in 1984, the office property underwent significant renovations in 2014 and now features recently upgraded amenities and a technology-enabled central courtyard.

The post Kane Realty JV Lands $134M Refi for Mixed-Use Development appeared first on Commercial Property Executive.

Master-planned for an eventual total of about 1.3 million square feet, the park seeks to attract industrial, flex, logistics, GMP and life science tenants. It’s being developed on 160 acres on Old Hamlin Road near Oxford Road and the future North Durham Parkway, providing easy access to Highway 70 and I-85.

Phase 1 consists of four shallow-bay and warehouse buildings whose construction financing was provided by U.S. Bank.

Of the planned nine to 10 buildings, those in Phase 1 (Buildings D through G) are in the park’s southeastern portion and total about 394,800 square feet. They range widely in size, with spaces as small as 4,800 square feet available.

Building D is 103,200 square feet and Building E is 74,400 square feet; both have 40- by 40-foot bays and a 24-foot clear height. Building F is 192,000 square feet, with 50- by 60-foot bays and a 32-foot clear height. Building G is 25,200 square feet, with 30- by 40-foot bays and a 24-foot clear height.

READ ALSO: Lower Rates Signal Increase in Industrial Sales

Welcome Group’s collaborators in the project include RW2 Development Co., of Greensboro, N.C., which is handling entitlements, development and project management. Other local consultants involved in the project are Choate Construction, civil and environmental engineers Withers Ravenel, Maurer Architecture and general contractor Sullivan Eastern.

The campus will eventually feature extensive paved and mulched paths among its amenities. Colliers International is handling leasing.

Raleigh-Durham’s strong industrial demand

After a slow start to the year, activity in the Raleigh-Durham industrial market picked up substantially, as positive net absorption hit its 10th straight quarter, according to a second-quarter report from Colliers.

About two-thirds of the 758,000 square feet delivered in the second quarter was preleased, helping to pull the overall vacancy down to 4.6 percent. And even though the development pipeline has risen to 3.2 million square feet, most of it speculative, Colliers expects ongoing strong demand to tighten vacancy further.

One of those preleased buildings was Scannell Properties’ first building in its master-planned Durham 85 Industrial Park. On completion, the 249,000-square-foot asset was fully leased to Life Science Logistics.

The post Welcome Group Wraps 1st Phase of Durham Industrial Park appeared first on Commercial Property Executive.

KBS Realty Advisors, together with Kane Realty Corp., has inked two leasing agreements totaling 31,659 square feet at Bank of America Tower, a Class A office building in Raleigh, N.C.

Intelligent asset management solutions provider Brightly Software by Siemens signed a 28,658-square-foot agreement. The company will occupy an entire floor at the building, where it will establish Siemens Industry Inc.’s new global headquarters.

The other deal involves Eva Garland Consulting’s expansion agreement for 3,000 square feet, resulting in a total footprint of approximately 15,000 square feet at the property.

Other notable tenants at the 300,322-square-foot tower include Spectrum Cos., Newmark, Merrill Lynch, Regus, Bank of America and KPMG.

READ ALSO: Innovative Solutions for Return-to-Office Challenges

KBS Realty Advisors developed the 18-story office building in joint venture with Kane Realty Corp. The project was funded by a $58.8 million construction loan provided in 2014 by Bank OZK, while the property is currently subject to a $79.5 million loan issued by New York Life Insurance Co., according to CommercialEdge information.

Completed in 2015, The LEED Gold certified property features a conference center, 28,647-square-foot floorplates, six passenger elevators, 10,000 square feet of first-floor retail space and 523 covered parking spots across six floors. Additionally, the building includes two restaurants on the ground-floor level, a coffee bar, a tenant lounge, motorcycle parking, bike storage and EV charging stations.

Located at 4242 Six Forks Road, Bank of America Tower is close to multiple bus stops and nearby dining and retail options. The property is within the city’s North Hills district, 5 miles from downtown Raleigh, 14 miles from Raleigh-Durham International Airport and 24 miles of Durham, N.C.

Large deals in the area

In April, IXL Learning expanded its headquarters by 22,309 square feet at 1600 Perimeter Park Drive in Morrisville, N.C. The deal brought the company’s entire commitment to 90,089 square feet, fully occupying the building. The property is part of a 3 million-square-foot master-planned development, owned by Mapletree US Income Commercial Trust.

That same month, Railinc leased 56,371 square feet at a Class A office campus in Cary, N.C. The company will relocate at 11000 Weston Parkway in the first quarter of 2025. The property is part of Lakeview at Weston office complex, owned by Highwoods Properties.

The post KBS JV Inks Office Deals at Raleigh Tower appeared first on Commercial Property Executive.

JLL Capital Markets represented the seller, a partnership between Trinity Capital Advisors and Nuveen Real Estate.

The Class A portfolio is fully leased to four diverse tenants, including major regional and international users. Delivered in 2023, it features rear-load logistics facilities with 32-foot clear heights, ESFR sprinklers, LED lighting, as well as abundant auto and trailer parking.

Avison Young’s second-quarter logistics report for the area stated that Raleigh-Durham is reaching a healthier balance between supply and demand as deliveries continue and availability reaches a reasonable 5.4 percent.

READ ALSO: Why Light Industrial Properties Will Continue to Shine

According to the report, just three years ago, vacancy stood at 2.2 percent, with demand so strong that construction began on nearly 6 million square feet of space, accounting for approximately 8.5 percent of the inventory at the time.

Avison Young also noted that despite the arrival of this additional supply and the higher availability in the market, rental rates have increased by 61.7 percent since the first quarter of 2023. Occupiers across the nation are grappling with rising commodity costs, making it harder for them to operate and afford higher rental rates. While the Raleigh-Durham market is stronger compared to previous years, broader economic conditions could still improve, according to the report.

A premier location in the Research Triangle Park

At 1730-1760 TW Alexander Drive in Durham, Alexander Commerce Park is along the northeastern edge of the 7,000-acre public-private Research Triangle Park. It is considered among the country’s top dedicated research parks, which retain many Fortune 500 firms and have an industrial submarket occupancy higher than 99 percent.

“The Raleigh-Durham industrial market is seeing rents continue to increase even as more product is coming to market due to the heightened demand to be located close to major state transportation avenues such as I-40, I-440, and I-540 and national highways such as I-81, I-85 and I-95 that connect the East Coast,” Avison Young Senior Vice President Evan Sassaman told Commercial Property Executive.

“Industrial space in the Raleigh-Durham market has attracted large institutional investors and corporations over the past few years due to this growing demand.”

Pete Pittroff, senior managing director, along with Dave Andrews, senior director, and Zachary Lloyd, associate, led the JLL Investment Sales and Advisory team.

In May, Prologis sold a roughly 5.1 million-square-foot industrial portfolio in metro Minneapolis-St. Paul, to multiple limited liability companies affiliated with EQT Exeter. CBRE arranged the sale.

The post Prologis Buys Research Triangle Industrial Park for $80M appeared first on Commercial Property Executive.

Merritt Properties has debuted 42 Crossing, a three-building, 213,800-square-foot light industrial campus in Garner, N.C.

The firm purchased the project’s 22-acre site for $2.9 million in 2022. One year later, Five Star Bank issued a $28 million construction loan, public records show.

Providing multi-bay and incubator spaces, the three buildings measure 65,000, 120,000 and 28,800 square feet. The newly completed property features 18- to 24-foot clear heights, as well as rear-loaded docks and drive-in capabilities.

READ ALSO: Industrial Development Pipeline Shrinks

The property’s incubator warehouses range between 1,800 and 3,600 square feet, providing small-bay industrial space. The facilities provide two offices, climate control and at-grade drive-in access.

Located at 6100 N.C. Highway 42 in Johnston County, 42 Crossing is less than 3 miles from Interstate 40 and some 7 miles southwest of U.S. Route 70, which connects North Carolina to Arizona.

Merritt Properties’ portfolio includes more than 21 million square feet of office, warehouse, industrial and retail space throughout Maryland, Florida, Virginia and North Carolina. The company began its expansion in The Tar Heel State four years ago.

In 2020, the firm broke ground on Merritt Capital Business Park, a 452,500-square-foot industrial campus in Wake Forest, N.C. Two years later, Merritt bought 142 acres of land in Cary, N.C., with plans to construct a 13-building, 738,750-square-foot light industrial park dubbed Merritt RDU Business Park.

Raleigh-Durham’s industrial fundamentals

Raleigh-Durham’s industrial vacancy rate stood at 5.4 percent in June, according to a report by Avison Young. This marked a substantial increase from the figure of 2.2 percent registered in 2021.

Back then, a strong demand pushed construction starts to skyrocket in the metro, reaching nearly 6 million square feet that year—representing 8.5 percent of total inventory at the time—the report goes on to show. Despite an increase in stock, the advertised asking rental rates rose by 61.7 percent since 2023’s first quarter.

Developers broke ground on 78.7 percent less industrial space in the first half of the year compared to the same period of last year. Increased construction costs, debt scarcity and higher vacancy rates influenced the decline.

Some 1.3 million square feet of industrial space have come online across Raleigh-Durham since January. Another recent delivery was Scannell Property’s 249,000-square-foot Durham facility. The building was the first to be completed in Durham 85 Industrial Park.

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A joint venture between Edgewater Ventures and Northridge Capital has purchased Landmark at North Hills, a two-building Class A office campus totaling 166,653 square feet in Raleigh, N.C.

JLL Capital Markets negotiated on behalf of the seller, BGO, that worked on behalf of an institutional investor. The office buildings changed hands for $21.3 million, according to CommercialEdge. The same source shows that Sun Life Financial originated a $14.8 million acquisition loan for the buyer.

Landmark at North Hills includes two five-story office properties at 4601 Six Forks Road, connected via a sky bridge, that include four passenger elevators and 830 vehicle parking spots. Originally completed in 1984, the office property underwent significant renovations in 2014, and now includes recently upgraded amenities and a technology-enabled central courtyard.

Landmark at North Hills is currently 84.3 percent occupied by a diverse tenant base, that includes companies such as South Bank, Prometheus Group, Imangi Studios, ITsavvy and Willson Jones Carter & Baxley P.A, CommercialEdge shows.

A closer look

The two-building office campus is on 7-acre site, in an area that allows easy access to Interstate 440. Part of the North Hills mixed-use district, the property is 5 miles from downtown Raleigh, 14 miles from Raleigh-Durham International Airport and within 26 miles of Durham, N.C.

The JLL Capital Markets Investment Sales and Advisory team that negotiated on behalf of the seller included Senior Managing Director Ryan Clutter, Senior Director Daniel Flynn, Director CJ Liuzzo and Associate Sarah Holloway.

Earlier this year, Clutter and Flynn arranged a $79.4 million portfolio sale in the area: in April, Highwoods Properties sold an eight-building medical office portfolio consisting of 338,000 square feet in Raleigh. Evergreen Medical Properties acquired seven buildings, all part of Rexwoods Office Center campus, while Northwood Ravin picked up a 97,000-square-foot building.

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Durham 85 Industrial Park is less than a mile from I-85. Life Science Logistics is using the building for shipping and logistics for the pharmaceutical industry. The tenant is a specialist in pharmaceutical and medical device warehousing, fulfillment and stockpile management in 11 states, including North Carolina but also California, New York, Texas and Washington state.

The second building, also coming in at 249,600 square feet, is a speculative project. The rear-load structure will have a 32-foot clear height with 27 dock doors, and parking for 67 trailers and 222 autos. The building is slated for completion in late spring 2025.

READ ALSO: Industrial Property Values on the Upswing

The company has approvals on two more buildings at Durham 85 and is deliberating the timing of their groundbreaking.

Indianapolis-based Scannell is a privately held CRE development company with 13 regional offices in the U.S., Canada and Europe. It has completed projects for FedEx, Best Buy, GE, Nestle, General Mills and other national and global companies.

Research Triangle industrial development drops

Scannell’s second building will be one of a fewer number of spec industrial buildings in the Research Triangle market in the near future. Despite previous momentum, construction starts slowed considerably in the first quarter of 2024, Colliers reported.

Construction starts are being limited by the interest rate climate and other capital market considerations, so few speculative projects will be delivered in 2025, according to Colliers. With the drop, Raleigh’s industrial vacancy rate is expected to tighten again as demand persists.

The first quarter of 2024 ended with a 5.1 percent industrial vacancy rate in Raleigh’s core markets and 7.8 percent vacancy rate when including emerging submarkets such as Johnston County and the I-40/I-85 corridor, Colliers noted.

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The 171,700-square-foot, two-reactor facility will accelerate the company’s development and production of biologic therapies for patients with rare and serious diseases, while also contributing to the Sanford area’s economic growth and development.

Construction on the project is scheduled to begin in the second half of 2024. The facility is expected to become fully operational in 2027.

The 75-acre campus at Helix Innovation Park at The Brickyard will allow for future expansion, as needed.

READ ALSO: Office Debt – The Underwater Mountain

The deal is supported by performance-based state and local incentives to Kyowa Kirin of $10 million over 12 years, which are estimated to grow the state’s economy by $1.05 billion over the course of the grant, according to the North Carolina Department of Commerce.

The plant will create more than 100 new local jobs at an average salary of $91,496.

Raleigh-Durham area a prime location

Executive Managing Director Matt Jackson, a member of JLL’s Life Sciences Advisory Council, told Commercial Property Executive the U.S. is not necessarily seeing a rise but an evolution in biologics manufacturing.

Biologics manufacturing has been in the U.S. for a long time. Technologies and modalities are changing, he said, and the recent advances in biologics solutions are focused on cell therapy and related innovations.

Biologics manufacturing has historically been centralized in a handful of clusters across the U.S., including Greater Boston, Northern New Jersey, Philadelphia, the I-270 Corridor, the San Francisco Bay Area and San Diego.

During the past decade, Raleigh-Durham has emerged as a strong contender for these operations, along with Houston, Minneapolis, Seattle and Denver.

“Raleigh-Durham stands out due to its ongoing focus on the production of talent from its world-class universities; support from the government; desirable destination for mid-career professionals seeking a better quality of life and lower cost of living; and an active development community bringing new industrial scale sites to the market in proximity to the Research Triangle Park,” Jackson said.

“When looking at the range of factors that biologics manufacturers typically evaluate when selecting sites, the Raleigh-Durham area compares favorably to many other candidate locations in the country.”

READ ALSO: Attracting Life Science Tenants in Core Markets

Daniel Flynn, senior director, JLL Capital Markets, said Raleigh-Durham is a top destination for biomanufacturing users due to its low cost of living and doing business, high quality of life, and growing cluster of advanced pharmaceutical and biotechnology companies.

“What is often understated is the industry infrastructure which exists in the region: a dynamic workforce, robust private and government funding ecosystem, and a deep existing base of innovative companies lay the foundation for the ongoing growth of the life sciences space locally,” he told CPE.

Sanford is about 40 miles southwest of Raleigh.

Kyowa Kirin said a key driver of the new manufacturing facility is the growing global imperative to treat diseases that individually are rare, but which collectively affect an estimated 263 to 446 million people worldwide.

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It is the first of three development phases for an expansive industrial project to encompass 1.8 million square feet.

The initial phase of Wendell Commerce Center will feature three state-of-the-art industrial buildings, totaling approximately 493,000 square feet. It is expected to be completed by October 2025.

Upon completion, the entire site will include eight industrial buildings, strategically constructed over three phases. It is positioned in East Wake County and the City of Wendell, with access and connectivity to major interstates including I-87, I-540, and US 64.

READ ALSO: The Case for Last-Mile Facilities

Zoned land is scarce in nearby Knightdale, Garner and Raleigh. Coupled with strong absorption and limited new construction options, this development is deemed ideal for businesses seeking modern industrial space.

Raleigh is developing as an industrial hub, particularly in the fields of energy management and automation, according to Yardi Matrix.

The completion of Wendell Commerce Center will not only meet current market demands but also contribute to the long-term economic vitality of the region.

Raleigh’s Warehouse District on transformative path

The future of Raleigh’s warehousing and the broader Warehouse District appears to be on a transformative path with several other large-scale developments underway, according to Yardi Matrix research.

These projects indicate a shift toward mixed-use developments that combine residential living with commercial and retail spaces, which could lead to a more vibrant and dynamic Warehouse District.

The focus on integrating public transit options like the Bus Rapid Transit line also suggests an emphasis on sustainable urban growth and improved connectivity within Raleigh. Overall, these changes are likely to enhance the appeal of the Warehouse District as a key destination for both residents and businesses.

Union West is a transit-oriented project being developed by a partnership between GoTriangle and Hoffman & Associates, which began construction in the fall and is expected to be completed in 2025. It will include a new regional bus station next to Raleigh Union Station and add 400 apartments, a hotel and retail space to the Warehouse District.

The Weld and Park City South projects near Dix Park will collectively add more than 1,000 apartments by the end of 2025, significantly increasing the density of housing in the area. The Weld will consist of two 20-story residential towers, with construction already begun on the first tower.

320 West South Street is a 20-story tower with 297 luxury apartments that Capital Square is developing in the Warehouse District. This development will also include a standalone parking structure and ground-floor retail space.

The post Summit Real Estate Plans 1.8 MSF Metro Raleigh Industrial Park appeared first on Commercial Property Executive.

Wigeon Capital has sold Greenfield 27, a three-building, 260,000-square-foot Class A industrial park in Garner, N.C., within the South Raleigh submarket, for a combined $47.3 million. Cushman & Wakefield and NAI Tri Properties negotiated the deal on behalf of the seller and developer.

Greenfield 27 consists of Building 1, at 600 S. Greenfield Parkway, and Buildings 2 and 3, at 4101 and 4501 Waterfield Drive. All three properties came online in 2023.

Building 1 comprises 160,380 square feet and features 32-foot clear heights, ESFR sprinkler systems, two grade-level doors, 32 dock high doors and 177 vehicle parking spots. Wake County Board of Alcoholic Beverage Control acquired the industrial property for $27.5 million.

The 57,600-square-foot Building 2 and the 44,800-square-foot Building 3 both offer ESFR sprinkler systems, 32-foot clear heights, 18 and 14 dock-high doors, respectively, as well as a total of 190 vehicle parking spots. The buyer was Foxfield Real Estate, which picked them up for $19,8 million. Principle Financial Group originated an $11.8 million acquisition loan, with a maturity date set for 2028, according to CommercialEdge.

Additionally, both industrial properties are fully leased to Acousti Engineering and Southern Staircase, which occupy Building 3, while The Macomb Group fully leases Building 2.

Greenfield 27 sits on a 27-acre lot, allowing immediate access to Interstate 40 and State Highway 70. The three-building industrial campus is 11 miles from Raleigh, N.C., 26 miles from Raleigh-Durham International Airport and within 37 miles of Durham, N.C.

Cushman & Wakefield’s Net Lease Group team that worked on behalf of the seller includes Executive Managing Director Christopher Sheldon, Executive Directors Doug Longyear and Andy Bogardus, while NAI Tri Properties’ Executive Vice President Jimmy Barnes also assisted in both transactions.

Industrial projects currently under construction

There are multiple industrial projects currently underway in the Raleigh-Durham metro. Among them is Research Triangle Logistics Park, a 162-acre Class A industrial campus in Hillsborough, N.C. Developers Barrister Commercial Group and Terra Equity I LLC started construction on the 2.4 million-square-foot project in March.

During the same period, the first building at Triangle Innovation Point in New Hill, N.C., was completed by a partnership between Samet Corp., Lee-More Capital and a Denver-based family office. The 340,000-square-foot facility is fully leased to FedEx Ground and is part of the the master-planned project’s first phase, which can accommodate as much as 2 million square feet of space.

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Education technology pioneer IXL Learning has expanded its East Coast headquarters by 22,309 square feet at Perimeter Park in Morrisville, N.C. The company now fully occupies the 90,089-square-foot office building at 1600 Perimeter Park Drive. Mapletree US Income Commercial Trust is the landlord.

IXL Learning first moved to the campus in 2016, committing to 17,000 square feet at 1500 Perimeter. Since then, the firm has signed two consecutive expansions in that building, before moving to the adjacent property.

Managing Partner William Allen and Director Alex Dunn of Trinity Partners represented Mapletree in the deal. Coldwell Banker Commercial Senior CRE Advisor Andrew Peceimer and Lee & Associates Managing Director Brian Farmer worked on behalf of the tenant.

Part of a master-planned development

The facility at 1600 Perimeter is part of Perimeter Park, a 3 million-square-foot, Class A office development in the heart of Research Triangle Park, owned by multiple companies. Amenities at the park include two fitness centers, 7 miles of walking trails, a conference center and EV charging stations, along with a tenant lounge and a café.

The LEED Gold-certified building came online in 1994 and rises four stories. The property features floorplates averaging about 22,500 square feet, two passenger elevators and roughly 360 parking spaces.

Mapletree acquired the asset in November 2020, in a $159.1 million portfolio transaction that comprised eight buildings, according to CommercialEdge information. The firm had also purchased three other Perimeter Park assets for $189 million two months earlier.

Tenants at the campus include Microsoft, UNC Health Care, Syneos Health, Premier Research and Northrop Grumman, but also Mercalis, which signed a full-building, 78,588-square-foot lease renewal at 2250 Perimeter Park Drive in February.

Raleigh’s office sector faces headwinds

Raleigh-Durham’s office vacancy rate in the first quarter of this year clocked in at 19.3 percent, up 90 basis points year-over-year, according to a CBRE market report. New office deliveries and lease expirations have lead to the market’s softened fundamentals. Additionally, the metro’s average asking rate during the same period was $31.1.

Last week, railroad and tech solutions provider Railinc committed to 56,371 square feet at Highwoods Properties’ building in Carry, N.C. The LEED Gold-certified property is part of a development that will feature three facilities upon full build-out.

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Railinc has signed a leasing agreement for 56,371 square feet of office space at 11000 Weston Parkway, a Class A office campus in Cary, N.C., owned by Highwoods Properties. JLL represented Railinc in the transaction.

The railroad and tech solutions provider will relocate to the new space in the first quarter of 2025. Railinc is currently based at 7001 Weston Parkway, which is also part of Highwoods Properties’ portfolio, CommercialEdge data shows.

The 11000 Weston Parkway building is part of Highwoods’ Lakeview at Weston office complex, which also includes 11800 Weston Parkway. According to the same source, a third office building—10900 Weston Parkway—is in the planning and permitting stages.

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Completed in 1998 and renovated in 2019, 11000 Weston Parkway provides 178,300 square feet of office space across four stories, with floorplates measuring 44,575 square feet. The LEED Gold-certified lakefront building features a gym, jogging trails, bike storage, indoor and outdoor collaborative spaces, as well as a Take 5 Café, among other amenities.

Notable tenants include Xerox, SBM Life Science Corp. and Transamerica Agency Network.

Located off Lake Crabtree, the property is 5 miles south of Interstate 40, some 4 miles northwest of downtown Cary and nearly 6 miles south of Raleigh-Durham International Airport. Railinc’s current headquarters is less than 1 mile away.

JLL-led Raleigh-Durham deals

JLL Managing Director Kimarie Ankenbrand and Executive Vice President Ryan Lawrence represented Railinc in the lease.

Earlier this month, JLL Capital Markets brokered Highwood Properties’ sale of an eight-building medical office portfolio in Raleigh, N.C. The portfolio comprises 338,000 square feet and sold for $79.4 million.

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Highwoods Properties has sold an eight-building medical office portfolio in Raleigh, N.C.—encompassing a total of 338,000 square feet—for $79.4 million.

Two separate buyers purchased the assets. Evergreen Medical Properties acquired seven of the buildings, all part of the Rexwoods Office Center campus in West Raleigh. Northwood Ravin purchased a 97,000-square-foot building adjacent to the Research Triangle Park, according to Wake County records, and now intends to redevelop the property.

According to the same source, Evergreen received $23.9 million in financing from Webster Bank and a $22.5 million loan from Equitrust Life Insurance Co. to finance the acquisition of the Rexwoods campus. Meanwhile, Highwoods Properties provided $6.2 million in non-recourse first mortgage seller financing to Northwood for the RTP building. The note is set to mature next year in February.

JLL Capital Markets worked on behalf of the seller, procured the buyers and arranged acquisition financing for part of the portfolio.

Near a health-care cluster

Located at the corner of Blue Ridge and Lake Boone Trail, the Rexwoods campus is across from UNC-REX Hospital and has access to interstates 40 and 440. Downtown Raleigh is less than 7 miles away. Other medical service providers in the surrounding area include WakeMed Raleigh Campus and Duke Raleigh Hospital.

Highwoods Properties developed and purchased the buildings between 1982 and 1998. Three of them were recently renovated. The tenant roster includes Raleigh Eye and Face Plastic Surgery, HRC Behavioral Health & Psychiatry, Raleigh Spine and Pain Center, LifeStance Health and SME Clinic of Raleigh, among others. The Rexwoods campus was 84 percent occupied at the time of the sale.

JLL Senior Managing Directors Mindy Berman and Ryan Clutter, Senior Director Daniel Flynn, Director Teddy Hobbs and Associates Woody Flythe and Landon Weaver were all part of the team involved in the sale. Senior Director Anthony Sardo and Director Ward Smith arranged the debt financing.

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German company SCHOTT Pharma will further expand in the U.S. with a new syringe manufacturing facility in Wilson, N.C. The $371 million project is expected to break ground by the end of the year, with operations scheduled to start in 2027.

The manufacturer selected Wilson County for its access to the Research Triangle and its labor pool. North Carolina supported SCHOTT’s expansion with $21 million in local and state incentives.

The project marks the first facility to manufacture prefillable polymer syringes that will meet the need for deep-cold storage and mRNA medications transportation. The factory will also produce glass prefillable syringes designed for GLP-1 therapies that treat diseases such as obesity or diabetes.

READ ALSO: Manufacturing’s Comeback Boosts Industrial Space Demand

SCHOTT expects to triple its U.S. production of glass and polymer syringes by 2030. The company’s products average to about 25,000 injections delivered per minute and serves around 1,800 customers globally.

Partners on the project also include the North Carolina Department of Commerce, the Economic Development Partnership of North Carolina, the North Carolina Community College System and the Wilson Economic Development Council.

Biomanufacturing sector’s growth in N.C.

High-tech industries have generated two-thirds of new manufacturing jobs over the past three years in the U.S., according to a new manufacturing report from Savills. North Carolina continues to attract biomanufacturing and pharmaceutical industries, with 9 percent of the new jobs created in the state between 2021 and 2023 being part of this sector.

A recent significant investment was FUJIFILM’s $2 billion life science facility in Holly Springs, N.C. The 1 million-square-foot property is expected to come online in 2025 and generate 725 manufacturing jobs. Late 2023, Johnson & Johnson’s Janssen Supply Group became the first tenant at the development.

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Vero Capital, formerly known as Admiral Capital Group, along with Prime Finance, have closed on the equity recapitalization of a four-property office portfolio located across the Sun Belt.

The partnership gained access to more than $20 million of immediately available capital for leasing costs and capital improvements. Walker & Dunlop arranged a $108 million CMBS loan originated by Goldman Sachs and Argentic.

The ownership acquired the assets two years ago and signed more than 400,000 square feet in leasing agreements at the properties, also implementing various capex programs. Tenants across the portfolio include Samsung, Kimley-Horn and Associates and BAE Systems.

The almost 1 million-square-foot ensemble is located in Alpharetta, Ga., Plano, Texas, Raleigh, N.C., and Falls Church, Va. The portfolio boasts a weighted average lease term of 4.8 remaining years and a weighted average occupancy of 84.9 percent.

The two-building Parkway at Avalon measuring 197,000 square feet is one of the office assets recapitalized. The 15-acre Alpharetta campus came online between 2000 and 2001 and features a pair of six-story structures with 24,600-square-foot average floorplates and more than 800 parking spaces. Vero Capital acquired the asset from Velocis for $53 million, according to CommercialEdge information, with help from a line of credit originated by Column Financial.

Walker & Dunlop New York Capital Markets Managing Director Sean Reimer, Senior Managing Directors Aaron Appel, Keith Kurland, Jonathan Schwartz and Adam Schwartz, along with Senior Analyst Christopher de Raet arranged the deal.

Last year, Vero announced the $29 million overhaul of a 410,000-square-foot, two-building office complex in Scottsdale, Ariz. The company picked up the value-add property in 2021 from Velocis.

The post Vero Capital JV Lands Recap for Sun Belt Office Portfolio appeared first on Commercial Property Executive.

Barrister Commercial Group, in partnership with Terra Equity I LLC, has started construction on Research Triangle Logistics Park, a 162-acre Class A industrial project in Hillsborough, N.C. Upon completion, the campus will comprise five buildings totaling up to 2.4 million square feet.

Avison Young’s Vice President Bill Aucoin and Principal Jack Graham will provide leasing and consulting services on behalf of the owner.

The first phase of development will encompass more than 1.4 million square feet across three buildings.

The developer purchased the land from different sellers, paying a total of $7.4 million, according to the Orange County public records. The same source also reveals that Stock Yards Bank & Trust provided $3.5 million in construction financing.

READ ALSO: What’s Driving the Manufacturing Revival?

The first two buildings currently underway at Research Triangle Logistics Park will measure 275,000 and 163,000 square feet, with delivery scheduled for the third quarter of 2025. Planned features include 60-foot speed bays, ESFR sprinkler systems, 36- to 40-foot clear heights, 400 potential dock doors positions, 237 trailer parking spots and 1,000 vehicle parking spots, with expansion capabilities.

Phase one will also include a pad-ready site for an additional 915,000-square-foot building. Research Triangle Logistics Park’s second phase is set to include two more buildings totaling 845,000 square feet.

The development is at the Southwest corner of Interstate 40 and Highway Old N.C. 86, within the core of the Raleigh-Durham market and at the western edge of the Triangle market. The campus will rise 26 miles from Raleigh-Durham International Airport and within 56 miles of Piedmont Triad International Airport. Additional nearby transport hubs include Charlotte-Douglas International Airport, Port of Wilmington, Port of Charleston and Port of Savannah.

Slew of projects coming to the Research Triangle

The Raleigh-Durham industrial market saw a decline in construction starts in 2023, while nearly 4 million square feet of industrial space was added to its inventory, a recent Avison Young report shows. In addition, deliveries have been consistently rising since 2021, with the market’s vacancy rate reaching a low 4.3 percent in last year’ fourth quarter.

Recent industrial development in the market includes VinFast’s electric vehicle manufacturing facility in Chatham County, N.C. The $4 billion project represents the largest economic initiative in the state’s history. The 2.8 million-square-foot EV plant is slated to come online next year.

Last April, Welcome Ground started construction on a 1.3 million-square-foot industrial campus in Durham, N.C. Welcome Venture Park was designed to host a wide variety of businesses, including warehouse, logistics, life science and technology users.

The post Barrister Commercial Breaks Ground on 2.4 MSF Raleigh-Area Campus appeared first on Commercial Property Executive.

A partnership of Samet Corp., Lee-Moore Capital and a Denver-based family office completed the first building at Triangle Innovation Point in New Hill, N.C., within the state’s Research Triangle. The developers delivered a 340,000-square-foot industrial facility that is fully leased to FedEx Ground.

JLL is the leasing agent in charge of the industrial development at Triangle Innovation Point—a master-planned life science, manufacturing and industrial campus. The completed facility is part of the campus’ first phase, within TIP West, a 450-acre section that can accommodate up to 2 million square feet of new space.

TIP West now includes a 1 million-square-foot pad with heavy power available for occupancy. Buildings can range from 100,000 to 1 million square feet, with features such as 50- by 54-foot column spacing, 26- to 34-foot clear heights, drive-in doors, office space, among others.

A life sciences and manufacturing hub coming to Raleigh

Triangle Innovation Point encompasses more than 2,150 acres, according to a marketing brochure from 2020. Plans call for 47 potential buildings totaling 12.6 million square feet of space, out of which 4.2 million square feet are designated for office users and 8.4 million square feet are for industrial tenants—either manufacturing or logistics space.

TIP’s location allows easy access to multiple interchanges on U.S. Highway 1, while being close to U.S. State Route 540 and less than 25 miles of interstates 440 and 40. The campus is also rail-served with CSX railway services and features development pads for sale, starting from 10 acres. Raleigh-Durham International Airport is within a 30 minute drive, Raleigh Executive Jetport is 7 miles from the industrial park, while multiple ports such as Port of Wilmington, Port of Charleston or Port of Savannah are accessible by road and rail.

The TIP project team includes O’Brien Atkins Associates, Kimley-Horn, RKA Transportation, Chatham Economic Development Corp. and Chatham County. JLL’s Managing Directors Matt Winters and Al Williams, together with Samet Corp.’s President of Real Estate Brian Hall, are handling marketing and leasing efforts at Triangle Innovation Point.

The need for large industrial spaces

The Raleigh-Durham industrial market saw stability throughout 2023, despite fewer construction projects starting in the second half of the year, according to an Avison Young report. A similar trend occurred in 2022 in terms of construction starts. Meanwhile, newly occupied industrial space consisted of larger commitments.

Recent projects in the area include FUJIFILM Diosynth Biotechnologies’ 1 million-square-foot biopharmaceutical manufacturing facility in Holy Springs, N.C., where, in late 2023, it welcomed its first tenant, Johnson & Johnson’s Jansen Supply Group.

Welcome Group broke ground in early 2023 on Welcome Venture Park, a 1.3 million-square-foot industrial campus in Durham, N.C. The 16-acre master-planned development will host a variety of businesses, such as logistics, warehousing, technology and life science users.

The post FedEx-Occupied Building Delivered in NC’s Research Triangle Park appeared first on Commercial Property Executive.

Mercalis, a life sciences and pharmaceutical commercialization service provider, has renewed its full-building lease at 2250 Perimeter Park Drive, a 78,588-square-foot office property in Morrisville, N.C. The company, which has been a tenant at the Class A office since 2015, signed a 10-year lease extension with Mapletree US Income Trust.

Trinity Partners Director Alex Dunn and Managing Partner William Allen worked on behalf of the landlord, while Lee and Associates Managing Director Brian Farmer and Vice President Marlene Spritzer represented the tenant.

The three-story building is part of Perimeter Park, a master-planned development. In 2020, the owner acquired the eight-building office campus for $159.1 million from Goldman Sachs Asset Management, CommercialEdge data shows. After the acquisition, the firm developed four new buildings within the park totaling 766,000 square feet. Plans call for the addition of 300,000 square feet of office space.

The LEED-certified property features floorplates averaging about 37,750 square feet, two passenger elevators and roughly 430 parking spaces. Other amenities at the park include two fitness centers, a conference center, 7 miles of walking trails and EV charging stations, along with a tenant lounge and a café.

Completed in 2008, the building is within 3 miles of Raleigh-Durham International Airport and 14 miles from downtown Raleigh. 2250 Perimeter Park Drive is also 5 miles from the IBM 500 Campus, a four-building property that traded last year.

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Hines affiliate Hines Global Income Trust Inc. has acquired the IBM 500 Campus. Image courtesy of Hines

Hines affiliate Hines Global Income Trust Inc. has acquired the IBM 500 Campus, a four-building, 774,000-square-foot property at 4205 S. Miami Blvd. in Durham, N.C. The property traded for $66 million, according to Durham County public records.

The four-building asset is fully leased by IBM. Hines highlighted that the 146-acre campus is “in one of the top life science metros in America.”

The location is adjacent to Research Triangle Park, the nation’s largest research park and home to 375 research, technology and ag-bio companies employing more than 60,000 workers, about 4 miles from Raleigh Durham International Airport.

READ ALSO: How Lifestyle Offices Are Redefining Work-Life Balance

In a prepared statement, Paul Zarian, managing director at Hines, said that the firm was attracted to the site’s future redevelopment optionality, specifically given its strategic location in the heart of a high demand submarket for life science, residential and industrial uses.

“The long-term plans for the campus are undetermined. They could include redevelopment into a different use, depending on future market conditions,” a Hines spokesperson told Commercial Property Executive.

Decisions, decisions

Hines obviously will face major decisions about any redevelopment or expansion at IBM 500.

Right now, the Raleigh-Durham office market is seeing a dip in demand, slower hiring, increased job postings for remote work and total Class A availability at 27.3 percent, as Class A rents have decreased by nearly 2 percent, according to a third-quarter report from Avison Young.

The current market for life science space is noticeably better. Although vacancy is trending up, to 22.8 percent, so are asking rents, to $36.92, Cushman & Wakefield reports. About 2.1 million square feet of space is said to be under construction, though depending on market conditions, some of that might end up as something other than life science space.

In February, RXR Realty acquired Veridea, a 1,000-acre-plus mixed-use development site in Apex, N.C., about 20 miles from Research Triangle Park. The $91 million deal opens the door for RXR to proceed with an estimated total of $3 billion in development at the site, including 1,000 multifamily units, 1,100 single-family homes and more than 750,000 square feet of commercial space, as well as a new 34-acre campus for Wake Technical Community College.

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FUJIFILM Diosynth officials recently attended the Holly Springs facility’s site unveiling. Image courtesy of FUJIFILM Diosynth Biotechnologies

FUJIFILM Diosynth Biotechnologies has signed Johnson & Johnson‘s Janssen Supply Group as the first tenant at its $2 billion biopharmaceutical manufacturing facility in Holly Springs, N.C., a 1 million-square-foot development slated for completion in 2025. The location will support Janssen’s clinical and commercial manufacturing pipeline.

FUJIFILM Diosynth announced the plans for the Holly Springs facility in January 2021 and broke ground on the project same year in October, partnering with the local government, the chamber of commerce and academia. The site will create 725 manufacturing jobs in North Carolina by the end of 2028.

READ ALSO: Life Science Market to Bounce Back: JLL

FUJIFILM launched a similar project in the nearby Research Triangle Park in late 2022. The company invested $188 million for the development of a 250,000-square-foot cell culture media manufacturing facility which will support the cGMP manufacturing of dry powder and liquid media.

The largest cell culture CDMO facility in North America

Upon completion, the facility will include two large-scale manufacturing sites with 4 x 20,000 L bioreactors each; development plans also include the possibility for expansion with additional 24 x 20,000 L bioreactors. Services provided will feature drug substance manufacturing, automated fill-finish and assembly, packaging and labeling.

The superplant is also slated to include sustainability features. Its design targets 100 percent clean energy utilization, together with implementation of cutting edge waste disposal and recycling, among others.

To become the largest cell culture CDMO facility in North America, the superplant is taking shape at 11751 New Hill Road in the Triangle region, 20 miles from downtown Raleigh, N.C. The location is also adjacent to a 2 million-square-foot life science campus developed by Crescent Communities and Nuveen Real Estate.

Raleigh-Durham’s life science real estate sector ended the second quarter of 2023 with a vacancy rate of 22.8 percent, a 40-basis-point increase quarter-over-quarter, according to a Cushman & Wakefield report. Q2 was also the fifth consecutive quarter in which the market registered a rise in rental rates. The metro had 2.2 million square feet under construction, with 467,361 square feet completed by the end of the second quarter.

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St. John Properties plans to wrap up work on Wake Forest Exchange by 2027. Image courtesy of St. John Properties

St. John Properties has purchased a 30-acre lot in Wake Forest, N.C., with plans to develop a 165,000-square-foot mixed-use project. Plans call for six single-story buildings with flex, office and retail space that are expected to support approximately 500 jobs when fully completed and leased.

This marks the developer’s first land acquisition in the state. SVN Tar Heel Commercial Realty Inc.’s Managing Director Jay Taylor worked on behalf of the seller.

Plans for a business community

Wake Forest Exchange will be developed in phases, with the first including two flex buildings totaling 95,040 square feet, a 25,000-square-foot office structure and a 10,725-square-foot retail component. The flex buildings will include clear heights between 16 and 18 feet, dock and drive-in doors and suites from 2,400 to 59,760 square feet.

The full development plan will include an additional flex building as well as another retail one. The first phase is expected to start in early 2024 and the entire campus is scheduled for completion by 2027. St. John Properties’ Regional Partner Dustin Atkielski will be leading leasing efforts.

The 30-acre site is close to Star Road and South Main Street, and the project will rise less than 5 miles from Interstate 540 and 13 miles from Raleigh, N.C. The land represents one of the last remaining tracts north of Interstate 540 while Wake Forest Exchange will be a high-quality product in the area, added St. John Properties’ Atkielski, in prepared remarks.

The Raleigh-Durham area is not falling short of large-scale, mixed-use developments, one of the biggest being RXR’sVeridea, a mixed-use project worth $3 billion in Apex, N.C. RXR purchased the 1,000-acre site for $91 million and plans of the first phase include multifamily and single-family units, as well as more than 750,000 square feet of life science, logistics and education space.

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VinFast groundbreaking ceremony in North Carolina. Image courtesy of VinFast

VinFast has broken ground on its electric vehicle manufacturing facility in Chatham County, N.C. The $4 billion project represents the largest economic development initiative in North Carolina’s history.

Taking shape in phases on an approximately 1,800-acre site, the development marks the first EV manufacturing plant in the state and VinFast’s first facility in the U.S.

Clayco is the plant’s general contractor and construction management company. The facility is anticipated to begin vehicle production in 2025.

VinFast’s mega-project, up close

VinFast announced their intention to build a manufacturing facility in the U.S. last March; back then, groundbreaking was expected in the second half of 2022. Last July, the Vietnam-based firm also received a $1.2 billion incentive package from the State of North Carolina for the project that was expected to generate more than 7,500 jobs over the course of 5 years.

VinFast’s site plans include eight structures totaling 2.85 million square feet, according to The News & Observer. At full build-out, the manufacturing campus will comprise a body shop, general assembly facility, press shop, paint shop and energy center, as well as other functional facilities. The press shop will be more than 75 feet tall and the general assembly space will encompass nearly 1 million square feet.

The factory’s Phase I, involving a total investment of nearly $2 billion, will build VinFast’s VF 7, VF 8 and VF 9 electric vehicles at a rate of approximately 150,000 vehicles annually. Phase II will focus on battery production.

The development site is near Moncure, N.C., roughly 30 miles southwest of Raleigh, N.C., on the eastern side of Triangle Innovation Point. The center of the Research Triangle Park is also 30 miles away.

EV production plants on the rise

Other EV automakers, such as Tesla, Ford and several German companies, have been heavily investing in manufacturing facilities in the U.S. to take advantage of the incentives passed by the Biden administration for climate-friendly technology. The overall EV industry is anticipated to continue to grow across the nation.

As of February, the largest under-construction EV pipelines were in Phoenix, Dallas-Fort Worth and Charlotte, N.C. In South Carolina and Alabama, billion-dollar production plants are planned by BMW and Mercedes.

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Welcome Venture Park. Image courtesy of Colliers

Welcome Group has broken ground on Welcome Venture Park, a 1.3 million-square-foot industrial campus in Durham, N.C. RW2 Development Co. is handling entitlements, development and project management. Choate Construction, Withers Ravenel, Kimley-Horn, Maurer Architecture, Morningstar Law and S&ME are also advising or assisting the developer in various capacities.

The master-planned project was designed to host a wide array of businesses, including logistics, warehouse, laboratory, technology and life science users. The Colliers International Raleigh team of Larry Lakins, Hunter Willard and Andrew Young is spearheading the leasing efforts at the property.

The business park’s first phase, which is due to be online in 2024, includes four shallow-bay/warehouse buildings totaling 392,000 square feet, with clear heights of 24 and 32 feet and ample parking. The property’s design also calls for outdoor green spaces and natural areas.

Located in North Carolina’s Research Triangle area, the 160-acre site is at 1225 Hamlin Road, near Oxford Road and the future North Durham Parkway, providing easy access to Highway 70 and Interstate 85. Raleigh-Durham International Airport is some 18 miles south.

The property is 30 miles from another industrial project taking shape in the Triangle and also less than 14 miles from the Research Triangle Park, one of the world’s largest life science clusters. According to a recent Cushman & Wakefield report, demand for life science space in the area remained strong throughout 2022, leading to 11.8 million square feet in construction projects that will add to the existing inventory of 12.8 million square feet.

The post Ground Breaks on 1.3 MSF Research Triangle Business Park appeared first on Commercial Property Executive.

King Street Properties and Nuveen Real Estate have appointed JLL as exclusive leasing broker for Eastridge at Perimeter Park, a 490,000-square-foot, nine-building life science park in Morrisville, N.C. Executive Vice Presidents Eric Forshee and John MacDonell will spearhead the leasing efforts.

As revealed by JLL’s 2022 Life Science Research Outlook report, Raleigh-Durham is the sixth-strongest life science cluster in the U.S. and fourth in terms of acquiring talent and commercial real estate assets. The market, which contributed to the delivery of 9.6 million square feet of new space last year, is recognized as one of the leading biomanufacturing hubs in North America, the same source shows.

A revitalized life science campus

King Street and Nuveen purchased Eastridge at Perimeter Park in 2020 from Somerset Properties and Alex. Brown Realty, now ABR Capital Partners. Cushman & Wakefield assisted the sellers in the deal.

Since the acquisition, King Street has implemented several enhancements at the 1980s-built property, including revamping the exterior façades and installing new signage, as well as improving the pedestrian walkways through landscaping and repaving. Additionally, the company has been investing in upgrading the infrastructure of the campus to accommodate a wide range of life science requirements.

In July, King Street has also completed the construction of a 9,000-square-foot amenity building dubbed The Shed. The amenity hub anchors the property and features training and conference spaces, a fitness center with locker rooms and showers, an indoor-outdoor tenant lounge, private collaboration rooms, a café and a golf simulator lounge.

The Class A campus is adjacent to Airport Boulevard at 100-1000 Perimeter Park Drive, providing connectivity to interstates 40 and 540. Research Triangle Park and Raleigh-Durham International Airport are less than 5 miles from the property. Various hospitality, retail and dining destinations are also close by.

The post JLL to Lease 490 KSF Research Triangle Campus appeared first on Commercial Property Executive.

Advance Auto Parts Tower. Image courtesy of Kane Realty Corp.

Aftermarket automotive parts provider and retailer Advance Auto Parts has taken off the market a one-floor, 30,000-square-foot portion of its 93,573-square-foot sublease at Advance Auto Parts Tower in Raleigh, N.C., the Triangle Business Journal reported. In 2021, the Fortune 500 company put up for sublease the 16th, 17th and 18th floors of the 20-story building, two of which landed tenants in 2022.

Advance Auto Parts became the 328,600-square-foot Class A office tower’s anchor tenant in 2019, with an original pre-lease comprising the building’s 12th and 16th through 21st floors, totaling 218,000 square feet, with a terms set for the end of 2032.

In 2021, the tenant made three floors available for sublease. Raleigh-based cloud computing and wireless networking services provider Relay committed to the 18th floor in mid-2022, while the 16th floor also gained another tenant.

READ ALSO: A Closer Look at Tech Layoffs’ Impact on Office Leasing

Owned and operated by its developer, Kane Realty Corp., Advance Auto Parts Tower came online in 2020 and comprises 11 office stories with 31,000-square-foot floor plates. Duda Paine & SRSSA were the architects, while Brockette Davis Drake provided structural engineering services for the project. Onsite amenities include a fitness center, cafes, kitchen spaces and conference centers, 880 covered private parking spaces and 8,234 square feet of ground-floor retail space, according to CommercialEdge information.

The North Hills skyline. Image courtesy of Kane Realty Corp.

Located at 4200 Six Forks Road in North Hills, the property is just off Interstate 440, while downtown Raleigh is 4 miles south. Research Triangle Park, home to one of the city’s largest life science and office districts, is 14 miles away.

Office leasing in the City of Oaks

Economic headwinds, as well as changing needs for office work has greatly impacted sublease availability within the Raleigh-Durham market. At the end of 2022, more than 3 million square feet of space was available for sublease, marking a 7.7 percent increase quarter-over-quarter and up 46 percent year-over-year, according to a fourth quarter report from Colliers. At that point in time, the market had a vacancy rate of 12.8 percent, up 66 basis points since the previous quarter, the same source shows.

Other high-profile leases around Raleigh include Highwoods Properties’ headquarters relocation to Wells Fargo Capital Center in the city’s downtown area. Emblematic of the market’s emergence as a life science research, development and manufacturing hub, bio manufacturing company TARGAN leased the entirety of the Midtown BioCenter, a lab facility scheduled for completion in 2023.

The post Raleigh-Based Fortune 500 Company Reclaims Part of Sublease appeared first on Commercial Property Executive.

Wakefield Crossing. Image courtesy of JLL Capital Markets

Granite Canyon Partners has purchased Wakefield Crossing, a 75,927-square-foot shopping center in Raleigh, N.C., for $14.3 million. JLL Capital Markets brokered the transaction on behalf of the seller. Preferred Apartment Communities sold the grocery-anchored shopping center, according to CommercialEdge data. The property last traded for $12.1 million, sold by Hackney Real Estate Partners back in 2020.

Food Lion and Tuesday Morning anchor the 2001-completed center. Other tenants include Subway, Wakefield Tavern, Wake Health Medical Group and Dante’s Italiano. At the time of the sale, the center was 95 percent occupied.

Wakefield Crossing is located in Raleigh’s Wake Forest submarket, at 13200 Falls of Neuse Road. The center occupies 9.9 acres. According to JLL, the property sits in an area with a daily traffic count of approximately 19,500 vehicles and annual customer visits close to 800,000.

Senior Director Tom Kolarczyk led the JLL Capital Markets Investment Sales and Advisory team. Kolarczyk, along with Senior Managing Director Danny Finkle, also recently represented Columbia Development Group and Luber Adler in selling a 59,516-square-foot shopping center in New Bern, N.C.

The post PAC Sells Raleigh Shopping Center appeared first on Commercial Property Executive.

Veridea conceptual master plan. Image courtesy of RXR

RXR Realty has acquired Veridea, a more than 1,000-acre mixed-use development site in Apex, N.C. The company purchased the land for $91 million. Hudson Realty Capital was previously attached to the project, CommercialEdge data shows.

The project aligns with RXR’s national strategy of investing in Superstar Regions. The company expects a total investment of $3 billion.

The first phase will include 1,000 multifamily units, 1,100 single-family residences developed by Lennar, while more than 750,000 square feet will be allocated for life science research, logistics and education. RXR also partnered with Wake Technical Community College for the construction of a 340,000-square-foot campus across 34 acres. Plans also call for the development of a new elementary school on a 21-acre site.

The initial focus will be on East Village and will set the tone for the project. The 460-acre East Village Neighborhood Center is situated on the eastern part of the Veridea development, accessed through the intersection of Highway 55 and Technology Drive.

The zoning of the site allows for the development of as many as 8,000 residential units, 12 million square feet of commercial space including life science, industrial and warehouse properties, and 3.5 million square feet of retail, hospitality and civic uses.

Veridea is located at the intersection of three major highways: US 1, Interstate 540 and Highway 55, 19.4 miles from Raleigh, N.C., and 26 miles from Durham, N.C. The development site is roughly 20 miles south from the Research Triangle Park, a major employment hub in the area.

Foundry Commercial brokered the transaction. CEO & Principal Moss Withers of Lee & Associates brokered the sale of the site where Wake Technical will relocate the new campus.

Mixed-use projects in the Research Triangle

Veridea marks RXR’s first acquisition and development in North Carolina, situated within the Research Triangle area of Raleigh, Durham and Chapel Hill, the largest scientific research center in the U.S.

Major developments in the area include The Exchange Raleigh, a $1 billion, 40-acre mixed-use project, developed by DeWitt Carolinas Inc. In September 2022, construction began on 1000 Social, the first of the mixed-use property’s two 12-story office towers totaling 330,000 square feet.

Raleigh had another mixed-use building completed in the spring of 2022, a 19-story tower totaling 292,500 square feet of office and retail space developed by Barings and The Fallon Co.

Earlier in February, Trammell Crow Co., in partnership with High Street Residential, topped out 400H, another Raleigh mixed-use project, slated for completion in the summer of 2023.

The post RXR Realty’s $3B Project Moves Ahead With Land Deal appeared first on Commercial Property Executive.

One North Hills topping out celebration. Image courtesy of Brasfield & Gorrie

Local developer Kane Realty Corp. has topped out One North Hills, a Class A office tower in the North Hills Main District Expansion project in Raleigh, N.C. Brasfield & Gorrie is the building’s general contractor.

The 10-story, 266,000-square-foot office tower features ground-level retail, a two-story lobby connected to a lounge and flexible event space, a grand terrace, ground-floor conference space. The building is scheduled for delivery in the third quarter of this year and is targeting LEED Silver designation.

The North Hills Expansion project, just off the I-440 Beltline, also includes a 12-story residential tower, a five-story creative office building, and a parking deck at the base of the development.

READ ALSO: Amenities and the New Office

Duda|Paine Architects, of Durham, N.C., is the project architect. The overall project is expected to complete in the third quarter of 2024.

Raleigh-Durham’s building boom

Although the Raleigh-Durham metro enjoys a 3.3 percent unemployment rate, one of the lowest in the Southeast, the market’s office sector has an overall vacancy of 12.8 percent, according to a fourth-quarter report from Cushman & Wakefield.

That figure, the report points out, has been boosted by quantities of sublease space, such that net absorption for 2022 was a negative 64,900 square feet. Spaces under 10,000 square feet are the most sought after.

Continued development—and subleasing—are expected to keep office vacancy levels substantial, Cushman & Wakefield projects.

Last September, DeWitt Carolinas got underway with 1000 Social, the first of two 12-story office towers at The Exchange Raleigh, a 40-acre master-planned, mixed-use development.

And just earlier this month, Trammel Crow topped out 400H, a 365,000-square-foot mixed-use project at 400 Hillsborough St. in Raleigh that will include 150,000 square feet of office space.

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Rendering of 400H. Image courtesy of Trammell Crow Co.

Trammell Crow Co., together with its subsidiary, High Street Residential, have topped out 400H, a 365,000-square-foot mixed-use project in Raleigh, N.C.

Designed by Gensler, the development is expected to be completed in the summer of 2023. Partners behind the project include AECOM-Canyon Partners and HM Partners.

The tower’s construction is financed through a $114.6 million loan originated by Quadreal Finance, CommercialEdge data shows. Work started in 2021, with Barnhill Contracting Co. overseeing the development process. CBRE is providing property management services. Office leasing will be directed by JLL’s Executive Vice President John MacDonell and Associate Mimi Portratz, while York Properties’ Senior Vice President John Koonce will be in charge of retail leasing.

READ ALSO: Office Leasing Strategies for the New Landscape

Upon completion, 400H will include 150,000 square feet of Class A office space, 16,000 square feet of ground-floor retail and 242 luxury apartment units. Located at 400 Hillsborough St., the 20-story mixed-use project will feature floorplates ranging from 21,039 to 25,000 square feet, five passenger elevators and 674 parking spots, according to CommercialEdge data.

Common-area amenities for office tenants will include an outdoor terrace equipped with space for events that can host as many as 150 people, a fitness center that will be shared with the property’s residents and more than 10,000 square feet of conference space. The residents’ amenities will include a SkyHub on the ninth floor, an outdoor swimming pool, a common-area lounge on the 20th floor and an outdoor terrace.

Focused on raising standards

Situated in downtown Raleigh, the mid-rise tower is close to interstates 40 and 440, as well as Glenwood South, the city’s entertainment district, and the Warehouse District, which is home to companies including Envestnet and Citrix. The property is also within 3.5 miles from North Carolina State University and within 13 miles of Raleigh-Durham International Airport.

400H aims to raise the bar for mixed-use experiences, according to Woody Coley, senior vice president for TCC and lead on the office and retail portions of 400H. The office portion’s design and amenity space are part of the growing trend to create collaboration spaces that enhance the recruitment and retention of employees and bolster their productivity, Coley said in prepared remarks.

In the fall of 2022, DeWitt Carolinas Inc. moved forward with another major Raleigh project: 1000 Social, the first of two, 12-story office towers situated within a $1 billion mixed-use development. Earlier in April 2022, Barings and its joint venture partner The Fallon Co., completed 301 Hillsborough at Raleigh Crossing, a 292,500-square-foot mixed-use tower in downtown Raleigh.

The post Trammell Crow Tops Out Raleigh Mixed-Use Tower appeared first on Commercial Property Executive.

The first two buildings located at the site at 11651 Holly Springs New Hill Road will be ready for tenant upfit in September 2023, and will be completed by the end of 2023. The third building will be completed in the spring of 2024. The space was designed to maximize flexibility for future users, including increased structural reinforcement to allow for mezzanine space, increased insulation, multiple options for utility connectivity and layouts to accommodate a wide variety of tenant upfits.

Phase 2 building of THE YIELD Holly Springs. Image courtesy of Crescent Communities

In connection with the project, the developers will also deliver more than a half-mile of greenway, a 1-acre amenity green to foster collaboration and community, and connectivity to retail both on site and off site in the Holly Springs’ Business Park.

READ ALSO: MBH Architects on Trends in Bay Area Life Science Design

Elizabeth McMillan, vice president – Development at Crescent Communities, said in a prepared statement they are confident businesses seeking certainty, speed to market and biomanufacturing purpose-built product will find THE YIELD Holly Springs is well positioned to suit their needs. She called it a significant milestone furthering the Holly Springs’ biomanufacturing cluster.

Crescent and Nuveen announced in February 2022 that they had acquired 120 acres in Holly Springs to expand THE YIELD, a $500 million life science campus that was already under development. The additional 120 acres meant the project could be expanded to as much as 2 million square feet of biomanufacturing, office/lab and retail space. The campus, now estimated to cost more than $1 billion to develop, is designed to provide options for small, mid-size and large biotech companies to create spaces tailored to their needs.

Multi-phase development

Phase 1, comprising 210,000 square feet of biomanufacturing space on 27 acres, was sold in December to a partnership between Apollo Global Real Estate Management and GeneSuites, according to Crescent. It is now known as Catalyst BioCampus.

The second phase being built in partnership with Nuveen encompasses the development of 120 acres and is designed for more than 1 million square feet of bio-manufacturing, lab/office space and campus amenities adjacent to existing anchors Seqirus and FULIFILMS Diosynth Biotechnologies. At completion, the entire campus will house up to 1 million square feet of single-story biomanufacturing buildings that feature second-floor expansion capability, 100,000 square feet of lab/office buildings and nearly 35,000 square feet of retail offerings.

As part of THE YIELD life science brand, Crescent closed in December on 83 acres of land to develop another life science campus in Holly Springs. THE YIELD North will be located along the US-1 corridor at 7511 Woods Creek. The site will accommodate up to 850,000 square feet of biomanufacturing space across a range of buildings from 75,000 to 300,000 square feet and a total of 1.3 million square feet of single-story biomanufacturing, office and lab space, with the opportunity to increase floor area by adding more stories to buildings. The campus will be adjacent to Amgen’s new manufacturing facility in Friendship Innovation Park.

The post Crescent, Nuveen Launch Next Phase of $1B Life Science Campus appeared first on Commercial Property Executive.

Image by Geralt via Pixabay

Prologis has retained Colliers as exclusive leasing agent for a 24-building, 2.8 million-square-foot industrial portfolio located around Raleigh, N.C. Executive Vice Presidents Larry Lakins and Hunter Willard, alongside Senior Vice President Andrew Young, will continue to oversee all leasing efforts at the fully occupied properties.

Prologis gained ownership of the Research Triangle portfolio in October, when the firm acquired Duke Realty Corp. in the industry’s largest enterprise-level deal of the past four years. The purchase included the entirety of Duke’s investment, management and development endeavors.

The portfolio profile

3000 Perimeter Park Drive. Image via Google Street View

Completed between 1994 and 2020, the industrial campuses are primarily used for logistics and warehousing operations, according to CommercialEdge information. Tenants include a diverse array of local, national and international companies, from Pharmodel and PMC to Anixter and Amazon, the same source shows.

All properties have easy access to the area’s tangle of major thoroughfares that include Chapel Hill Road and U.S. Route 70, as well as Interstate 40.

The portfolio includes:

• CenterPoint Business Park, located at 1757 and 1805 T.W. Alexander Drive in Durham, N.C. Together, the two facilities total 555,418 square feet.
• The four-building, 358,272-square-foot Perimeter Park in Morrisville, N.C. The properties are situated at 2700-3000 Perimeter Park Drive.
• Woodlake Center, comprising 503,490 square feet across five warehouses at 100 to 501 Innovation Ave., also in Morrisville.
• Walnut Creek, a five-building campus located at 3070, 3071, 3080 and 4000 Business Park Drive, as well as 540 Civic Blvd. in Raleigh.
• 905,368 square feet across eight facilities at the Greenfield North industrial park, located at 600-1201 N. Greenfield Parkway in Garner, N.C., south of Raleigh.

The post Prologis Taps Colliers to Lease 2.8 MSF Portfolio appeared first on Commercial Property Executive.

Image by Marcin Jozwiak via Pixabay

Beacon Partners is planning to build a more than 1.2 million-square-foot industrial campus in North Carolina’s Research Triangle area. At full build-out, Apex Gateway would feature four speculative buildings and a 163,900-square-foot facility that will house the Durham Coca-Cola Bottling Co.’s headquarters.

Apex Gateway will be developed in two phases on 132 acres at the intersection of U.S. Highway 64 and N.C. Highway 751 in Apex, N.C., on the Chatham County side of the Chatham/Wake County border. According to documents filed with the town, the four speculative buildings will be 135,000 square feet, 175,500 square feet, 371,900 square feet and 359,600 square feet. Groundbreaking is scheduled for the first quarter of this year and the project is slated for completion by 2024.

READ ALSO: Trends That Will Shape Industrial Real Estate in 2023

As for the build-to-suit facility, the developer intends to break ground on the future home of Durham Coca-Cola Bottling Co. in the second quarter of 2023. The company is an independent holder of a contract for products from The Coca-Cola Co. and also has distribution rights for Dr. Pepper brands and Monster Energy drinks. The move to Chatham will allow it to be more centrally located in its service area, which includes portions of Wake, Orange, Durham, Chatham, Granville, Person and Vance counties.

M. Hager Rand, current president of Durham Coca-Cola Bottling Co., announced the company’s relocation plans last summer. He said, in a prepared statement, that the new facility will feature enhanced sustainable building specifications that will yield zero landfill waste and create as little environmental impact as possible.

Expanding its Triangle footprint

Late last year, Beacon Partners expanded its Triangle footprint with the acquisition of two properties in Sanford, N.C. One of them is the current home of the Durham Coca-Cola Bottling Co., comprising a 32,114-square-foot distribution center and a 8,686-square-foot flex building located at 1605 Hawkins Ave. The second purchase was 5100 Rex McLeod Drive, which includes a 100,800-square-foot distribution building in the Central Carolina Enterprise Park on U.S. Route 1.

Following these purchases, Beacon Partners currently owns and operates more than 1.9 million square feet of assets in The Triangle area. An additional 2 million square feet, including Apex Gateway, are planned or under construction. The developer has already started work on a $32 million, 306,000-square-foot build-to-suit industrial development at the 120-acre Cash Corporate Center, also located in Apex. The tenant was not named but the site is expected to house about 220 workers in a distribution center and offices, according to town documents.

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Syngenta RTP Innovation Center

Oak Street Real Estate Capital, part of Blue Owl Capital, has acquired Syngenta RTP Innovation Center, a 336,000-square-foot life science campus in North Carolina’s Research Triangle Park. Syngenta sold the Class A property for $213.3 million, according to Durham County records, in a sale-leaseback transaction.

The biotechnology firm developed the campus in two phases between 2013 and 2017, on a 50-acre former industrial site. Syngenta then consolidated three other RTP locations at the property that houses the company’s global research and development center for Syngenta Seeds.

READ ALSO: Life Science Outlook Remains Strong: Cushman & Wakefield

Located at 9 Davis Drive in Durham, N.C., the center’s 200,000-square-foot research facility comprises a four-story laboratory wing and three-story administration wing, connected by a three-story atrium, as well as both formal and informal collaborative areas.

The adjacent, 136,000-square-foot Advanced Crop Lab features 32 growing chambers and a media-prep suite that includes a clean room, mixing lab and environmental media storage areas. The campus is Green Globes certified, attaining three out of four Green Globes for sustainability.

Syngenta is currently developing a $18 million campus expansion, a 13,000-square-foot insectary. The facility, which will allow for more research on insects, broke ground this April and is expected to complete construction in May 2023.

Growing at Research Triangle Park

RTP, the largest research park in the U.S., has seen several deals within its grounds this year. FUJIFILM recently invested $188 million into a cell culture media manufacturing facility at the park, anticipated to open in early 2025.

In September, CBRE Investment Management acquired a 662,607-square-foot life science campus, on behalf of a separate account client. Starwood Capital Group sold the five-building, 95-acre campus for $288.1 million.

And, in February, Crescent Communities, in partnership with Nuveen Real Estate, added 120 acres in Holly Springs, N.C., to The Yield, Crescent’s $500 million, in-progress life science campus. The property could comprise as much as 2 million square feet of biomanufacturing, lab and office space at full build-out.

The post Oak Street Acquires $213M Research Triangle Park Asset appeared first on Commercial Property Executive.

Gerd Altmann via Pixabay.com

FUJIFILM Corp. has invested $188 million into a cell culture media manufacturing facility in North Carolina’s Research Triangle Park. The 64-acre site is set to hold a 250,000-square-foot asset operated by FUJIFILM Corp. subsidiary FUJIFILM Irvine Scientific Inc. It is the fifth site FUJIFILM Irvine Scientific will operate for FUJIFILM Corp.

The property will support the cGMP manufacturing of dry powder and liquid media. Production capacity for FUJIFILM Irvine Scientific is set to increase by 800,000 kilograms per year of dry powder, 3.3 million liters per year of liquid and 40,000 liters per day of water for injection.

READ ALSO: Life Science Outlook Remains Strong

RTP was chosen as the location for the development due to the site’s easy access to customers in the region as well as shipping, delivery and supply chain security. Other manufacturing locations for FUJIFILM Corp. include California, the Netherlands and Japan.

FUJIFILM Irvine Scientific has been experiencing exponential growth over the past 10 years, as a result of increasing demand for cell culture media manufacturing capabilities. The cell culture media to be produced at the North Carolina site will further continue to relationship between FUJIFILM Corp. and its biopharmaceutical industry customers. Products manufactured at the development will be used as raw materials for cell and gene therapies, medicines and biologics.

Tripling the company’s current capacity for liquid cell culture media production, the new facility is anticipated to create more than 100 jobs for bioprocessing engineers and manufacturers, as well as other production and logistics careers.

Land development and project construction are anticipated to begin in the spring of 2023. The facility is set to open in early 2025.

RTP at a glance

According to RTP’s website, the park began growing in the 1960s through 1980s, with big firms such as IBM and Burroughs-Wellcome creating research and development facilities on the site. It is now North America’s largest research park, with more than 300 tenants. In total, the area covers some 7,000 acres.

Of the total 735 life science companies located in North Carolina, RTP holds 569, according to a Cushman & Wakefield report. As the life science market continues to expand, rental rates are anticipated to climb in the park, with more investments and a reduced amount of available space. Several announcements from big firms planning to open facilities in the Raleigh-Durham region have led to a further $4 billion in anticipated developments in the area.

Last year, Charles River Laboratories signed a 70,369-square-foot lease at Park Point in the Research Triangle. Park Point takes up 100 acres of the larger park and offers 655,800 square feet of life science and office space.

In 2020, GRAIL Inc. established its $100 million laboratory facility in RTP, home to office and warehouse space structured around a blood draw test to detect cancer.

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Rendering of Veterans Affairs medical office building. Image courtesy of Gantry

Gantry has arranged $180 million in construction-to-permanent financing for the development of a 250,000-square-foot Veterans Affairs medical office building in Garner, N.C.

The medical facility is 100 percent leased under a long-term agreement to the U.S. Department of Veterans Affairs, to be used as a Community Based Outpatient Clinic.

The project is slated to break ground in early 2023 and the developer is a joint venture between Atriax and PPGG.

Gantry arranged the financing on behalf of the sponsor and will act as loan servicer throughout its full term. According to Wake County records, UMB Bank provided a 22-year, fixed-rate loan, locked earlier this year at time of application. The Gantry team included Principal George Mitsanas, Senior Director Peter Hillakas, alongside Associate Austin Ridge.

READ ALSO: Medical Office Sector Resists Adversity

George Mitsanas said in prepared remarks that the Veterans Affairs medical facilities are part of a strategic plan that will ensure access to health-care services for the country’s veterans and despite the current challenges in the market, VA projects still attract lenders willing to offer loan programs.

The property will rise at 2700 Benson Road, 10 miles from downtown Raleigh, with access to Interstate 40. Other medical facilities in the area include Reyer Medical Associates, McClure Orthodontics, with WakeMed Raleigh Campus 13 miles away.

Gantry’s financing deals for vet clinics

This is the fifth financing secured this year by Gantry on behalf of a sponsor specialized in VA medical facilities across the U.S., with total loans adding up to nearly $500 million. In September, Gantry arranged $267 million in permanent financing for four medical office buildings leased to the U.S. Department of Veterans Affairs, located in New Jersey, Florida, Virginia and California.

Two years ago, Gantry arranged another construction loan of $730 million, for a medical office portfolio. All six clinics were to be leased to the U.S. Department of Veterans Affairs in California, Florida and Oklahoma.

The post Gantry Secures $180M for Suburban Raleigh MOB Project appeared first on Commercial Property Executive.

4021 Stirrup Creek Dr.

A joint venture between Goldman Sachs Asset Management and Lincoln Harris has completed the purchase of a five-building, 445,000-square-foot portion of the Triangle Business Center life science campus in Raleigh, N.C.

The joint venture has acquired the assets at 4016, 4020, 4021, 4022 and 4025 Stirrup Creek Drive from TPG, according to CommercialEdge. Lincoln Harris had previously owned part of the campus and will assume leasing brokerage duties.

The buildings within TBC were developed between 1983 and 2000, and host a mix of office and laboratory space for tenants in the medical, technology and nutritional science fields, according to CommercialEdge information. The campus’ occupants include DuPont, Novan, Charles River Laboratories and Carsgen Therapeutics.

TPG had begun a series of upgrades to the property, including the construction of a two-story 14,000-square-foot amenity space, which includes a fitness center, landscaped outdoor areas, as well as a lounge and conference center. The new owners plan to continue these improvements, in addition to undertaking their own series of further renovations, including servicing utilities and the construction of new laboratory space for both current and future tenants.

Lincoln Harris Vice Presidents Kaler Walker Moseley and Amy Watkins will oversee leasing activities for the property.

The Research Triangle’s returns

Situated 2 miles to the northeast of Raleigh-Durham’s Research Triangle, TBC changes hands at a time when the area experiences a strong life science investment and development activity. According to data from Cushman & Wakefield, North Carolina is home to 790 life science companies, of which 634 are in the Research Triangle. The area currently has more than 1.6 million square feet of space under construction, in addition to 12.5 million square feet of existing life science properties.

READ ALSO: Exploring Redevelopment Opportunities Within Life Sciences

The Research Triangle is home to some of the nation’s largest life science projects, including an under-construction $1 billion, 1.5 million-square-foot joint development between Starwood and Trinity Capital, as well as Nuveen’s $500 million, 120-acre expansion of The Yield.

The post Goldman Sachs JV Buys Research Triangle Campus appeared first on Commercial Property Executive.

Image courtesy of Icondigital via Pixabay

Ecolab has broken ground on the first phase of the 550-acre High Point North Industrial Park in High Point, N.C.

Planned on 113 acres, the future customer care center warehouse will exceed 1 million square feet. Upon completion, the project will be the largest industrial building in High Point.

Earlier this month, developer PNK Group acquired the site from D.H. Griffin Cos. for $16.5 million.

To support Ecolab’s project, Guilford County and High Point have authorized cash incentives of $457,445 and $414,863, respectively.

The company is the first to establish a location within the High Point North Industrial Park. Ecolab announced the project in June, as an expansion of its manufacturing operations in Greensboro, N.C., located 2 miles from the new warehouse. Upon completion, the project will be the company’s largest distribution facility, taking over operations from the current site in Winston-Salem. Some 100 employees are currently working at the location.

Ecolab will initially occupy 825,400 square feet at the new facility, with the remaining space open for expansion. The warehouse will support The Kay Chemical Co., Ecolab’s largest division.

The groundbreaking ceremony was attended by company and government officials, project partners and business leaders. Some people in attendance included Commissioner Chairman Skip Alston, Mayor Jay Wagner and High Point Economic Development Corp. Director Sandy Dunbeck.

Situated on Sandy Ridge Road, the new facility is set to open by the end of 2023, employing 125 warehouse and fulfillment workers.

Industrial transactions in the area

North Carolina has seen many industrial deals this year. Recently, Westcore entered the North Carolina Market acquiring two industrial buildings for $36.9 million. The Winston-Salem portfolio was purchased from Front Street Capital.

DRA Advisors also acquired a four-property industrial portfolio in the area for $71 million. The seller, Rialto Capital Management, had owned the 88 percent occupied asset for three years before the deal.

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Palladian I

Innovatus Capital Partners has appointed Foundry Commercial with the leasing of Palladian Corporate Center in Durham, N.C. Managed by American Real Estate Partners, the two-building, Class A office property totals 190,556 square feet.

Foundry Principal John Kelly and Vice President Patrick Blackley will be in charge of marketing the asset. The 90,010-square-foot Palladian I is located at 220 Leigh Farm Road and is fully occupied; its twin building, the 100,546-square-foot Palladian II, at 240 Leigh Farm Road, is 74 percent leased.

Acquired by the current ownership in 2018 for $55.6 million, Palladian Corporate Center is at the intersection of Highway 54 and Interstate 40, 4.5 miles from the University of North Carolina at Chapel Hill, 7.8 miles from Duke University and within 10 miles of downtown Durham.

Up-to-date amenities at Palladian Corporate Center

Constructed in 2005 and 2007, respectively, the four-story buildings include amenities such as showers and lockers, on-site running trails and controlled access. Each property offers 402 parking spots and 26,000-square-foot floorplates, CommercialEdge shows.

The buildings feature HVAC coil disinfecting, hand sanitizing stations, electrostatic cleaning and indoor air quality tests. New amenities will be added in 2023, and will include a conference center, lounge area and fitness center.

The Triangle region’s office sector remains strong and with the return-to-office movement still ongoing, Kelly expects Palladian II’s availability to be short-lived, he said in prepared remarks. The booming life science market has a large share in the current fundamentals of the office sector nationwide. Earlier this year, bio-systems company TARGAN committed to the first life science-focused facility in the Midtown Raleigh, N.C. area. Dubbed Midtown BioCenter, the 100,000-square-foot property is slated for completion next year.

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Park Point. Image courtesy of CBRE Investment Management

CBRE Investment Management continues adding to its life science holdings with the purchase of Park Point, a 662,607-square-foot life science campus at Research Triangle Park in Durham, N.C., on behalf of a separate account client. Starwood Capital Group sold the five-building, 95-acre campus to the global real assets investment management firm for $288.1 million, public records show.

An affiliate of Starwood Capital Group and its partners Trinity Capital Advisors and Vanderbilt Partners acquired Park Point for $37 million in July 2019. The site had been vacant since 2016 when the former prime tenant, Nortel Networks, left after declaring bankruptcy. The joint venture spent more than $120 million renovating the property, which reopened in 2021 and offers flexible space solutions for innovative office, life science and good manufacturing practice uses. The property is also entitled for an additional 2.2 million square feet of development.

Amenities at the campus located at 4001 NC Highway 54 include a fitness center, café, indoor/outdoor common areas, athletic fields, walking trails, 2,546 parking spaces and a conference and training center. Park Point also has new, efficient systems that reduce energy and water consumption and enhance air quality. Electric vehicle charging stations will be installed at the property.

The Class A property aligns with the firm’s commitment to invest in life science assets as the demand for modern, responsive life science properties remains strong to provide specialized, customizable spaces required for scientific research.

READ ALSO: Why These CRE Sectors Provide Safer Harbors

Sondra Wenger, head of Americas Commercial Operator Division for CBRE Investment Management, said in a prepared statement life science end-users have very specific and sophisticated needs for lab and research space and they believe Park Point meets those needs and fits well with the firm’s investment strategy.

Wenger pointed to the property’s location at Raleigh-Durham’s Research Triangle Park as an asset because of its solid economic fundamentals. The Research Triangle attracts a strong base of scientific talent and is located near leading education and medical institutions. She also highlighted Park Point’s features including shared space, flexibility, technology and wellness options. Park Point has easy access to Interstate 40, N.C. Highway 54 and Davis Drive. Raleigh-Durham International Airport is within 5 miles of the Durham campus.

Tenants include Charles River Laboratories, which signed a 70,369-square-foot lease with the former owners in January 2021 to occupy the first and second floors at the three-story Edge West building. GRAIL Inc. leases 200,000 square feet and is working on an early cancer detection platform. Restor3d, a medical equipment manufacturing company, is slated to take 50,225 square feet between the Edge West building and Grid building starting in early 2023, according to the Triangle Business Journal.

Earlier life science deals

CBRE Investment Management, formerly known as CBRE Global Investors, had $146.9 billion in assets under management as of June 30. In July, a joint venture between a fund sponsored by CBRE IM and a public REIT acquired 300 Third St., a 132,000-square-life science property in Cambridge, Mass., from Alexandria Real Estate Equities. CBRE IM is the majority owner of the property that comprises a six-story building with lab and office space, and a restaurant. The property is fully leased to Alnylam Pharmaceuticals and the retail space is occupied by Fuji at Kendall, a sushi restaurant. It was the second life science property investment in the market within three months. In April, CBRE IM acquired an equity stake in a 432,931-square-foot building at 100 Binney St., also from Alexandria Real Estate Equities.

The post CBRE Investment Management Buys Life Science Campus for $288M appeared first on Commercial Property Executive.

The Exchange Raleigh. Rendering courtesy of Dewitt Carolinas Inc.

Construction has begun on 1000 Social, the first of two 12-story office towers with 330,000 square feet of Class A office space at The Exchange Raleigh, a $1 billion, 40-acre mixed-use project in Raleigh, N.C., being developed by DeWitt Carolinas Inc.

The building, which will also have 20,000 square feet of retail and 5,000 square feet of conference and meeting space, is one of two mirror-image towers being built on site at 900 Albans Drive that will be connected by an elevated skybridge and park. The first building is slated for completion in early 2024. The developer does not plan to start the second tower, 2000 Social, until the first tower is completed.

Originally called Midtown Exchange, Raleigh-based Dewitt Carolinas had been assembling the parcels for the master-planned property for more than 20 years. The developer announced the master plan for the development in November 2019. In April 2021, the company received a $40 million senior loan to fund pre-development activities and horizontal infrastructure construction.

At full build-out, the project will include 790,000 square feet of Class A office space; 1,275 residential units, including apartments, condos and townhomes; 300 hotel rooms; 125,000 square feet of retail and dining; and more than 7 acres of green space and park amenities. The other components won’t be built until 2000 Social is completed and the construction process is expected to take seven to 10 years.

1000 Social Details

1000 Social. Rendering courtesy of Dewitt Carolinas Inc.

Todd Saieed, Dewitt Carolinas’ CEO, said in a prepared statement that 1000 Social represents the overall vision for The Exchange Raleigh as a high-performing, environmentally responsive community. The modern architecture will be balanced by expansive outdoor workspaces and views of the surrounding 4-acre park. The developer plans to seek LEED and WELL Certification for sustainable performance and design standards that optimize health and well-being.

The top two levels at 1000 Social will be 28,500 square feet each and reserved for a headquarters tenant. They will be connected to 2000 Social when the second tower is built. The skybridge and building signage will be visible from 1-440, Raleigh’s beltline.

The architect for 1000 Social is Rule Joy Trammell Rubio LLC, of Atlanta. The landscape architect is Dallas-based Studio Outside. Brasfield & Gorrie is the general contractor. The Birmingham, Ala.,-based firm has offices throughout the Southeast and South, including Raleigh. Leasing will be handled by CBRE of Raleigh.

Dewitt was co-founded by Saieed and Senior Partner Ven Poole in 1997. The firm has developed more than 200 real estate projects throughout the Carolinas, including Class A office buildings, upscale multifamily projects and mixed-use developments.

The firm had closed on the purchase of an 18.8-acre site near North Hills in Raleigh for $16.3 million in July 2017. The new acreage was contiguous to the Dewitt Carolinas corporate headquarters at One Renaissance Center, a 20-acre property owned by the company since 1998. Combining the two properties, bordered by St. Albans Drive, enabled the firm to move forward with plans for The Exchange Raleigh. The properties had already been rezoned a few months earlier by the Raleigh City Council, giving the developer the flexibility to erect buildings ranging from seven stories to 20 stories.

The post Office Tower at $1B Raleigh Mixed-Use Gets Underway appeared first on Commercial Property Executive.

The Midtown BioCenter. Image courtesy of CBRE.

Bio-systems company TARGAN has leased Midtown BioCenter, a 100,000-square-foot development under construction at 350 E. Six Forks Road in Raleigh, N.C. CBRE represented the landlord, East West Partners, while Cushman & Wakefield negotiated on behalf of the tenant.

Originally constructed in 1991 as a Kroger grocery store, Midtown BioCenter is currently repurposed to feature high-bay lab and biomanufacturing space, as well as offices. Redline Design Group is the lead architect of the project, and ARCO Design/Build is undertaking the reconstruction and conversion of the space. Completion is slated for 2023.

READ ALSO: Why the Life Sciences Boom Is Not Likely to Bust

Upon delivery, Midtown BioCenter will be the first life science-focused facility in the Midtown Raleigh area. The building’s suburban location is some 4 miles north of downtown Raleigh and less than 2 miles from a mixed-use development set to include some 500,000 square feet of office space, 90,000 square feet of retail, as well as 220 residential units.

The Raleigh-Durham life science market continues to emerge and expand while the industry sees a nationwide boom. In January, Starwood and Trinity Capital announced their plan to build a a $1 billion campus in Morrisville, N.C., with the first facility to be delivered in 2023.

Another life science project is taking shape on 150 acres in Holly Springs, N.C. Crescent Communities and Nuveen Real Estate are developing a $500 million campus that would include as much as 2 million square feet of biomanufacturing, lab and office space.

The post TARGAN Leases New Raleigh Facility appeared first on Commercial Property Executive.

Wells Fargo Capitol Tower

Highwoods Properties is moving on. The Raleigh, N.C.-based REIT is planning to relocate from its longtime home in a suburban office park to a space in the thick of it, right downtown. The Triangle Business Journal reports that Highwoods Properties has decided to make a 37,000-square-foot space at its Wells Fargo Capitol Center its new headquarters.

Highwoods’ will bid adieu to its current headquarters roughly 5 miles away at Smoketree Tower, an approximately 170,000-square-foot building that was new when Highwoods first set up shop there. The 11-story asset was also part of Highwoods’ portfolio at the time.

“We have been in our current office space at Smoketree Tower since 1986, and we recently sold Smoketree Tower, so it made sense to look across our Raleigh portfolio for space where we could relocate our headquarters,” Brendan Maiorana, executive vice president & CFO with Highwoods Properties, told Commercial Property Executive.

READ ALSO: Why Flex Office Space Is Flourishing Again

In December 2021, Highwoods sold Smoketree Tower and a small neighboring building, Cottonwood, in a $35.5 million transaction. As an owner and manager of properties in the country’s best business districts, the REIT considered the properties to be non-core assets. Highwoods acquired Wells Fargo Capitol Center as part of a $769 million, 1.8 million-square-foot portfolio purchase in mid-2021.

Going home

At Wells Fargo Capitol Center, Highwoods will certainly have more prominent accommodations. Located at 150 Fayetteville, the approximately 560,000-square-foot Art Deco building is a landmark high-rise that hovers 29 stories above a sea of highly coveted amenities.

“Downtown Raleigh is a dynamic submarket, so we’re excited to move our headquarters there and be part of the downtown environment,” Maiorana said.

Highwoods will have smaller digs—the company’s space at Smoketree Tower totals more than 50,000 square feet—however, they will be more efficient. As described in the Triangle Business Journal, the new office space will be created with a greater focus on collaboration, as opposed to the office-centric designs seen in the 1980s. Highwoods should be using its new address by year’s end.

The company’s lease of space, albeit at its own building, may serve as an indication of a trend in the Raleigh-Durham office market. As noted in a fourth quarter 2021 report by JLL, tenants are showcasing a desire for high-quality office space and “Downtown Durham and Downtown Raleigh continue to drive tenant and investor demand from across the country.”

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Tower Two at Bloc 83. Rendering courtesy of Heritage Properties

City Office REIT Inc. has closed on its first North Carolina property with the purchase of Bloc 83, a two-building, 494,000-square-foot office property in downtown Raleigh, N.C. Original developer Heritage Properties pocketed $330 million for the office complex.

First to come online in 2019, the $86 million 1 Glenwood Ave. comprises 227,500 square feet and was 93 percent leased at the time of the sale. The property is anchored by WeWork, which signed an 81,032-square-foot commitment for floors three through five in 2017, a deal that marked the shared office provider’s debut in Raleigh.

The 271,500-square-foot, $108 million second building at 621 Hillsborough St. opened in 2021. Also known as Tower Two, the property held a 67 percent occupancy rate upon its lease-up phase, with Envestnet as anchor tenant. M&T Bank backed the project with a $73.4 million construction loan. Rising 10 stories, the tower was designed by prestigious architecture studio Gensler.

The Class AA buildings are situated in the Glenwood South district and include street-level retail, a rooftop sky lounge, two fitness centers and a yoga studio.

Other City Office deals

The REIT had a busy end of 2021, as it closed on two other purchases in the last month of the year. The company picked up The Terraces, a 1.3 million square-foot mixed-use asset in Dallas, for $133.5 million. The LEED Gold certified property sold at $773 per square foot and was 99 percent leased at the time of sale.

Just a few days prior to the trade, the REIT paid $150 million for the 307,030-square-foot office component of Block 23 at CityScape in downtown Phoenix. The deal closed at $488.60 per square foot, a record price for the market in 2021. RED Development was the seller.

The post City Office REIT Enters Raleigh With $330M Buy appeared first on Commercial Property Executive.

Waterfront Plaza Office Portfolio in Glen Allen, Va. Image courtesy of Cushman & Wakefield | Thalhimer’s Capital Markets Group

Highwoods Properties ended the year with a series of dispositions of non-core assets including the sale of four office buildings and a development parcel in the Richmond, Va., and Raleigh, N.C., markets for a total of $56 million.

Since April, when the Raleigh-based REIT agreed to buy a portfolio of office properties in Raleigh, Atlanta and Charlotte, N.C., from Preferred Apartment Communities Inc., Highwoods has sold more than 1.5 million square feet of space in non-core assets totaling $353 million.

READ ALSO: CRE Executives Point to Cautious 2022 Outlook

Runnymede Corp., based in Virginia Beach, Va., acquired the Waterfront Plaza Office Portfolio located within the Innsbrook Corporate Park at 4401 and 4421 Waterfront Drive in Glen Allen, Va., in the Richmond market, for a total of $20.8 million.

The portfolio comprises 97,489 square feet in two buildings. The Hamilton Beach Building at 4421 Waterfront Drive is a three-story, 58,366-square-foot, single-tenant, Class A office building fully leased to Hamilton Beach Brands. Waterfront Plaza, 4401 Waterfront Drive, is a two-story, 39,123-square-foot, multi-tenant building fully leased to four tenants including Hamilton Beach. It is connected via a climate-controlled walkway to the neighboring single-tenant building. The Hamilton Beach Building has been the international headquarters for Hamilton Beach Brands since it was developed in 1986.

Highwoods acquired both buildings in July 1995, paying Atack Properties about $2.9 million for 4401 Waterfront Drive and $5.4 million for 4421 Waterfront Drive, according to CommercialEdge data.

Eric Robison, executive vice president, and Bo McKown, associate, in Cushman & Wakefield | Thalhimer’s Capital Markets Group, represented the seller in the marketing and sale of the Waterfront Plaza Office Portfolio.

Highwoods said it also sold the Progress Center, consisting of two office buildings totaling 147,000 square feet in Raleigh, and an associated development parcel for a total of $35 million, at the end of the year.

The REIT also closed on the previously announced plan to sell three non-core buildings for a total of $65.9 million. The dispositions included Smoketree and Cottonwood, two office buildings with a total of 191,000 square feet in Raleigh for $35.5 million. Highwoods also sold Preserve V, a 175,000-square-foot office building in Tampa, Fla., for $30.4 million. Buyers of the three assets were not disclosed.

Funding Portfolio Deal

Highwoods said in a prepared statement it was ahead of its disposition schedule, having planned $250 million to $300 million on non-core asset sales by year-end 2021. The REIT stated the asset recycling program had improved the quality of its portfolio, reduced lease expiration risk, strengthened near-term cash flow and fortified its long-term growth trajectory. The company focuses on owning, developing and managing properties primarily in what it calls the best business districts (BBDs) of Atlanta, Charlotte, Raleigh, Richmond, Pittsburgh, Tampa, as well as Nashville, Tenn., and Orlando, Fla.

The REIT announced in April it intended to finance the purchase of the PAC office portfolio with the sale of a number of its non-core office properties. In July, Highwoods closed on the portfolio acquisition for $683 million. The largest part of the portfolio is in Raleigh and comprises the 560,000-square-foot Wells Fargo Capitol Center at 150 Fayetteville St. in the city center and the 300,000-square-foot CAPTRUST Tower in the North Hills submarket. The acquisition also included the 479,000-square-foot Capitol Towers and 291,000-square-foot Morrocroft Centre, both in the SouthPark submarket in Charlotte as well the Galleria 75 redevelopment site in the Cumberland/Galleria submarket of Atlanta.

The deal had changed slightly from the original $769 million announcement in April. A mezzanine loan related to a new office building in Atlanta was paid off in full by the third-party borrower and PAC sold Armour Yards, a multi-building creative office project in Atlanta to a third party.

Among the other non-core assets Highwoods has sold in recent months was the September disposition of an 87,000-square-foot medical office building in Richmond. JLL Income Property Trust purchased the portfolio for approximately $52 million. Located at 9101 Stony Point Drive, the property is leased to Virginia Urology.

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The Stitch. Image courtesy of Cushman & Wakefield

A life science campus in Morrisville, N.C., that recently underwent a major redevelopment has changed ownership. Related Fund Management has acquired The Stitch from Equator Capital Management for an undisclosed price. Cushman & Wakefield represented the seller and secured an undisclosed amount of acquisition financing for the buyer.

The Stitch spans 245,159 square feet and is currently fully leased to Invitae, a medical genetics company. Sara Owen, who was part of the Cushman & Wakefield team that represented the seller, told Commercial Property Executive that Invitae’s net lease started just prior to closing and will end in 2035. She also told CPE that some portions of the property are still under construction.

READ ALSO: Top 5 Office Deliveries Nationwide

Invitae is planning to use the property located at 1001 Airport Blvd. as its East Coast laboratory and production facility. The facility is expected to help the company expand capacity so it can better meet growing global demand for genetic testing services.

Owen said in prepared remarks that The Stitch attracted many investors when Cushman & Wakefield was marketing the property. The attention ultimately garnered record-breaking pricing, Owen added.

“Our team engaged with close to 200 different interested buyers during the time the property was being marketed for sale, many of which are well-known, institutional, international and overseas investors,” Owen told CPE. “There were multiple rounds of bidding and offers received that were highly competitive.”

New life as life science campus

Prior to its current configuration, The Stitch was originally built in 1981 as an outlet mall. Equator and OCS Capital pursued a significant adaptive reuse redevelopment for the 25-acre site that would eventually transform it into a modern and unique life science campus.

To design the major overhaul of The Stitch, the previous owners tapped Gensler, which highlighted the history of its previous life as a mall and found ways to bring more natural light into the building. The redevelopment, which was completed in 2020, now features an 18,000-square-foot indoor amenity area with a fitness center, on-site health-care provider, coffee bar, prep kitchen, private phone booths and quiet areas.

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Kane Realty’s Downtown South Raleigh Mixed-Use project. Image courtesy of 10 Design

10 Design, the architecture firm behind the design of Kane Realty Corp.’s new mixed-use project in downtown Raleigh, N.C., has shared the masterplan for the gargantuan development.

The project will take shape along Interstate 40 and will, according to 10 Design’s vision, evolve as a new borough of sorts. Without giving away specifics of square footage, 10 Design disclosed that the development of mid-rise buildings will feature a substantial amount of office space, as well as residential offerings, hospitality accommodations, retail space and leisure space. Additionally, the development is expected to have a 20,000-seat football stadium with a virtual reality center.

READ ALSO: World’s Largest Life Science Campus Launches

In envisioning the new destination, 10 Design has taken steps to ensure that the project fits into downtown Raleigh as if it had been there from the beginning. With a focus on connectivity, the development will be encircled by a bridge loop that provides easy access to the rest of Raleigh.

A natural fit

10 Design’s masterplan exploits Raleigh’s nickname, the City of Oaks, and draws on the natural surroundings of the location as a core feature of the design. The plan incorporates the majority of the existing vegetation into the design, which not only enhances the natural aesthetic, but also decreases the noise pollution coming from nearby Interstate 40.

Ted Givens, a design partner in 10 Design’s Miami studio, said in a prepared statement that the design provides a mix of simple buildings that merge with the natural landscape and iconic pieces that activate the masterplan.

The development, with a wealth of office offerings and a football stadium, will be able to capitalize on Raleigh’s strong technology and sports base. However, the entire design, dotted with public areas throughout, also pays homage to the city’s expansive network of parks. Together, Kane and 10 Design plan to reactivate the southern district of downtown Raleigh. For 10 Design, the Kane Realty project in Raleigh will mark the Hong Kong-based design firm’s first major project in North America.

Raleigh is mixing it up

Raleigh is birthing a bevy of new mixed-use projects, and developers are not shy about including office space. In February 2021, Jamestown and Grubb Ventures broke ground on the $150 million initial phase of Raleigh Iron Works, which will include 500,000 square feet of office space among its offerings. Just weeks ago in August, Trammell Crow Co., High Street Residential, AECOM-Canyon Partners and HM Partners announced the start of construction of 400H, a 365,000-square-foot high-rise that will encompass 150,000 square feet of office space on several floors.

The post A Robust Plan for Raleigh Revealed appeared first on Commercial Property Executive.

Fenton. Image courtesy of Hines

One of the largest mixed-use projects of its kind in the works today is closer to realization, now that Hines and Columbia Development have topped out their 69-acre undertaking in North Carolina’s Research Triangle.

READ ALSO: Urban Catalyst Lands Financing for Silicon Valley Makeover

Hines and Columbia recently joined stakeholders, community members and future tenants to the accomplishment, which comes less than a year after the joint venture partners boldly broke ground on the 2.5 million-square-foot project in the midst of the pandemic. Called Fenton, the new mixed-use destination is rising in Cary, N.C.

“We believe that Fenton is the right project at the right time in the right market,” Paul Zarian, a director with Hines, told Commercial Property Executive. “Cary is located squarely in the center of the Raleigh-Durham area, which is witnessing tremendous in-migration from employers and employees alike due to the area’s universities and deep talent pool, quality of life, already-strong tech presence and low cost of living. The past nine months alone have seen commitments from Apple, Google and Epic Games to build major office campuses in the region, the latter of which will be across the street from Fenton.”

Fenton. Image courtesy of Hines

Designed by Nelson Worldwide, Fenton will stand at the intersection of Interstate 40 and Cary Towne Blvd. The mixed-use district’s first phase, which is being financed with a $199.2 million construction loan, will feature 200,000 square feet of office space, a 175-key boutique hotel and a 357-unit luxury apartment community. The initial segment will also offer 345,000 square feet of retail offerings, including shops, restaurants and various eateries, as well as entertainment space.

“Fenton introduces walkability into a suburban market with excellent demographics, and the differentiated environment it provides was designed to appeal to our customers across retail, office and hospitality segments,” Zarian added.

Leasing activity is alive and well at Fenton

There is buzz for the office segment at Fenton. “Interest has been strong and has accelerated throughout the year,” noted Zarian. “As we emerge from COVID, employers are thinking differently about their real estate decisions. One of their main concerns is how to attract their new and existing employees back to the office. Because many employees no longer see physical office space as a necessity, employers realize that in order to recruit and retain talent, they have to offer an environment that reflects where their employees want to spend time.”

Retail isn’t dead in Cary. Eighty-two percent of Fenton’s retail segment has already been leased. News of the topping out follows a series of announcements of retail commitments. Home furnishings chain Ahaus was early to stake a claim, preleasing nearly 18,000 square feet for its store. Paragon Theaters, Williams Sonoma, Pottery Barn and Aveda Lifestyle Salon Spa will also be part of the lineup at Fenton, as will a host of other national chains.

Fenton will also be a breeding ground for culinary talent and local favorites. Chef Scott Crawford’s Crawford Brothers Steakhouse, Steve Palmer’s Italian restaurant Colletta, chef Michael Lee’s M Sushi, chef Ford Fry’s Tex-Mex restaurant Superica will be tenants. Triangle residents Drew Schenck and Kevin Barrett will open their Dram & Draught, a whiskey bar, at the site.

With the final I-beam having been placed at Fenton, façade work and window installation will now get underway. Additionally, Hoar Construction and Samet Corp. general contractors for the commercial and multifamily components of the development, respectively, can begin framing and interior work. If all goes according to plan, Fenton will open April 1, 2022.

The post Hines JV Tops Out Research Triangle Project appeared first on Commercial Property Executive.

Cash Corporate Life Sciences Park. Rendering courtesy of JLL

Oppidan Investment Co. and Rockpoint Group have formed a $157.3 million joint venture equity partnership for the development of 1.6 million square feet of industrial and life science projects across Minneapolis-St. Paul and Raleigh-Durham, N.C. JLL Capital Markets arranged the partnership on behalf of Minneapolis-based Oppidan.

The venture will create three separate developments, comprising a total of nine buildings. With five structures expected to begin construction this year, the buildings are slated for a gradual delivery through 2023.

Slated to rise in southern Minneapolis–St. Paul, Chaska Creek Industrial Park in Chaska, Minn., will encompass two bulk warehouses. Moving toward the northern part of the metro area, in Ramsey, Minn., the partnership is planning to erect the three-building Bunker Lake Business Park, marking the suburb’s single current speculative industrial investment.

Cash Corporate Life Sciences Park will comprise four life science buildings at 2100 Production Drive in Apex, N.C., southeast of central Raleigh. The 121-acre site is in proximity of three higher education campuses, including the University of North Carolina and Duke University.

JLL’s Senior Managing Directors Colin Ryan, John Huguenard, David Berglund and Pete Pittroff, along with Managing Director Patrick Nally, represented the developer. The Oppidan team comprises President Blake Hastings, Senior Vice President of development Jay Moore and Executive Vice President – Southeast Tim Brent.

In early 2021, Rockpoint joined forces with industry veteran Benjamin Harris, former CEO of Blackstone’s Link Logistics Real Estate, to invest in industrial assets across the country. The exclusive strategic partnership will target high-quality assets in gateway and growth industrial markets.

The post Oppidan Investment, Rockpoint Group Form $157M Equity Partnership appeared first on Commercial Property Executive.

Eastgate 540, Metropolitan Raleigh, N.C. Image courtesy of Trinity Capital Advisors

Trinity Capital Advisors has sold the first three of what will be seven buildings at Eastgate 540, a trophy-quality industrial park that will soon span 1.2 million square feet in metropolitan Raleigh, N.C.

Trinity sold the three facilities to BentallGreenOak for a total of approximately $111 million, according to Wake County records, and has arranged to sell the remaining four structures to the buyer upon their completion.

READ ALSO: TA Realty on Industrial’s Lasting Growth Spurt

Located in Knightdale, N.C., Eastgate 540 sits in Raleigh’s highly active East Wake industrial submarket. The sale comes a little over two years after Trinity Capital acquired Eastgate 540—a single-building property at the time, surrounded by a mass of developable land—in a $14.3 million transaction. The company immediately commenced its plan to transform the property into a premier industrial campus by adding new state-of-the-art facilities.

Eastgate 540 was meant to be held for a longer term; the commencement of the asset’s disposition comes four years ahead of schedule.

“It’s purely a story of being in a high-growth market in Raleigh-Durham, with the population growth and also the high number of educated workforce we have here that do a lot of online ordering, so that drives a high demand for warehouse space,” Jeff Sheehan, Partner, Trinity Capital Advisors, told Commercial Property Executive. “And really, we leased it as fast as we could build it. We believed in the original investment in the industrial market, but we had no idea what kind of tailwinds there really were.”

Eastgate 540 will see two additional facilities reach completion in August and October 2021, and the remaining two will deliver in April and May 2022. The three completed buildings and three under-construction projects are 94 percent leased. Preleasing for the seventh and final building at Eastgate 540 is currently underway. Trinity Capital is relying on the JLL Capital Markets team of Patrick Nally, Pete Pittroff, Dave Andrews for representation in the sale transaction with BentallGreenOak.

The cycle continues

Although Trinity Capital is in the position of making an earlier exit than originally expected at Eastgate 540, the value-add investor is hardly at loose ends. “We’ve got several other projects where we’re under construction across the Southeast and continue to remain bullish,” Sheehan said.

Trinity Capital’s industrial projects that are currently underway at various stages account for a total of 4.6 million square feet. Among the endeavors are TradeParkEast in Palmetto Commerce Park in metropolitan Charleston, S.C. The company announced the groundbreaking on the 850,000-square-foot development just weeks ago in late June.

The post Trinity Capital Sells 3 Raleigh-Area Industrial Assets appeared first on Commercial Property Executive.

1001 Bond St. Image courtesy of Cushman & Wakefield

Rialto Capital Management has sold a four-property, 869,916-square-foot industrial portfolio in Charlotte, N.C. and Durham, N.C., after three years of ownership. DRA Advisors paid $71 million for the asset.

At the time of the deal, the portfolio was 88 percent leased to five tenants. The former owner acquired the assets in mid-2018 from Trinity Capital Advisors for $39.8 million, according to Charlotte Business Journal.

The two largest properties, built in the 1960s, are situated in the Charlotte metro. Spanning 406,001 square feet across two buildings, 1001 Bond St. is located 5 miles north of Charlotte Douglas International Airport. The second property, located at 4001 Performance Road, has 187,000 square feet.

The Durham portfolio component includes two buildings at 2710 and 2910 Weck Drive. The structures date back to the 1980s and offer 107,968 and 168,847 square feet, respectively. The properties are 2 miles north of Interstate 40 and less than 8 miles northwest of Raleigh-Durham International Airport.

Cushman & Wakefield’s Rob Cochran, Stewart Calhoun, Casey Masters, Nolan Ashton, David Finger and Sara Owen of the capital markets team, along with Fermin Deoca and Eric Ridlehoover of the industrial leasing team represented Rialto in the deal.

In late 2020, DRA Advisors sold a 1.9 million-square-foot industrial portfolio to Spirit Realty Capital. The four properties, spread across a total of 141 acres, are each located near major metros, including Indianapolis, St. Louis, Atlanta and Oklahoma City.

The post DRA Advisors Buys $71M North Carolina Industrial Portfolio appeared first on Commercial Property Executive.

Midtown Exchange in Raleigh, N.C. Image courtesy of HPA Urban Architecture

More than 20 years after Dewitt Carolinas began assembling the properties needed to create a $1 billion, 40-acre mixed-use development in Raleigh, N.C., the real estate development firm has received a $40 million senior loan to fund the pre-development activities and horizontal infrastructure construction for the Midtown Exchange project. The loan puts the firm one step closer to beginning construction on the first phase, which will include a 353,000-square-foot office tower.

Dewitt Carolinas selected Avison Young to arrange the debt financing for the mixed-use project. Avison Young’s team was led by Wes Boatwright, Mike Yavinsky and Jon Goldstein, all principals in the Washington, D.C., office.

READ ALSO: Lending Across CRE Sectors: Q&A

In a prepared statement, Boatwright credited Dewitt Carolinas for putting the deal together including assembling the site, creating the master plan and the architectural design. He noted it is very rare to have a project of the scale of Midtown Exchange be located in a dense, urban setting, especially in a high-growth market like Raleigh.

In November 2019, Dewitt Carolinas announced the master plan for Midtown Exchange. At full build-out, the project will include 790,000 square feet of office space; 1,275 residential units; 300 senior living units; 300 hotel rooms; 125,000 square feet of retail and dining; a convention center, and more than seven acres of green space and park amenities.

According to Todd Saieed, CEO & co-founder, the Raleigh-based firm had originally envisioned Midtown Exchange as a place where family entertainment would converge with high-end offices, high-rise residences, world-class conference space and inspiring outdoor spaces.

The firm had closed on the purchase of an 18.8-acre site near North Hills for $16.3 million in July 2017. The new acreage was contiguous to the Dewitt Carolinas corporate headquarters at One Renaissance Centre, a 20-acre property owned by the company since 1998.

Combining the two properties, bordered by St. Albans Drive, enabled the firm to move forward with plans for the large mixed-use project. The properties had already been rezoned a few months earlier by the Raleigh City Council, giving the developer the flexibility to erect buildings ranging from seven stories to 20 stories.

The post Dewitt Carolinas Secures Loan to Kick Off $1B Development appeared first on Commercial Property Executive.

Apple CEO Tim Cook at the September 2020 keynote. Image courtesy of Apple

Apple plans to invest $1 billion in North Carolina and build a new campus at the state’s Research Triangle Park (RTP) as the iPhone maker continues to boost its real estate footprint across the U.S.

The company expects its future campus and engineering center to create at least 3,000 new jobs in fields such as machine learning, artificial intelligence and software engineering, Apple announced today. The new jobs are expected to fetch an average annual salary of $187,000, according to a statement by Wake County Economic Development.

READ ALSO: Google Commits $250M to New York Expansion

The newly announced facility will span more than 1 million square feet and will run on 100 percent renewable energy. Apple’s campus will be located on the Wake County side of RTP, the largest research park in the U.S., and will sit on land straddling North Carolina Highway 540 near Cary and Morrisville, The News & Observer reported.

The 7,000-acre park nearby Raleigh, Durham and Chapel Hill is home to hundreds of tenants, including the U.S. commercial headquarters of GlaxoSmithKline and a large Cisco Systems campus.

Taking more space

Apple’s move in the Tar Heel state forms part of a more than $430 billion planned investment across the U.S., which is slated to add 20,000 jobs over the next 5 years and will include tens of billions of dollars for technology development.

Apple’s new Austin campus. Image courtesy of Apple

The Cupertino, Calif.-based firm is building a $1 billion campus in northern Austin, which is expected to welcome its first employees next year. The company broke ground on the 33-acre facility in 2019.

In California, Apple expects to grow its teams in San Diego and Culver City to more than 5,000 and 3,000 employees, respectively, by 2026. The Culver City campus will be expanded to house the new workers.

Apple also recently opened a LEED Platinum-certified office space in Seattle’s South Lake Union area, accommodating 1,000 local employees, a workforce that is poised to at least double in size. In 2019, Apple announced it had leased two 12-story buildings in the neighborhood at 333 Dexter Ave. N.

The company, which has a $2.3 trillion market cap, is also beefing up its workforce in Boston; Boulder, Colo.; Miami; New York; Pittsburgh; and Portland, Ore. In addition, Apple is currently designing a new, 400,000-square-foot data center in Waukee, Iowa.

Rising tech hub

North Carolina Governor Roy Cooper, who gathered with other state leaders today to announce Apple’s investment, noted that the state has attracted 10 companies that have pledged to add thousands of jobs in just the last two months.

These firms include FUJIFILM Diosynth Biotechnologies and Abzena Holdings, which have decided to build biopharmaceutical plants in Wake County and Lee County, respectively. In early February, Gilead Sciences Inc. chose the Research Triangle region for a large business services and information technology hub that will bring 275 jobs.

Apple said its investments will ultimately generate more than $1.5 billion in economic benefits for the state. The company added that it will contribute more than $110 million in infrastructure spending in 80 North Carolina counties and will create a $100 million fund to support schools and community initiatives in the Raleigh-Durham area and across the state.

The tech behemoth expects to begin hiring immediately and will lease local office space for the new workers until the future campus is complete, according to an account by ABC11. Apple’s presence will add to a growing tech ecosystem in Wake County that now hosts nearly 4,000 technology firms including IBM, Red Hat, Lenovo, SAS and Epic Games.

The post Apple to Build 1 MSF Campus in North Carolina appeared first on Commercial Property Executive.

The Wells Fargo Capitol Center is the largest property in the transaction.

UPDATE: By closing time, the deal amount changed to $683 million.

Preferred Apartment Communities has agreed to sell an office portfolio to Highwoods Properties for $769 million. The deal, which includes 1.8 million square feet in Charlotte, N.C., Raleigh, N.C., and Atlanta, is slated to close in the third quarter. Highwoods intends to finance the purchase with the sale of a number of its non-core office properties.

The largest part of the portfolio is in Raleigh, comprising the 560,000-square-foot Wells Fargo Capitol Center at 150 Fayetteville St. in the city center and the 300,000-square-foot CAPTRUST Tower in the North Hills submarket. This marks the second major acquisition Highwoods has made in Raleigh this year alone: In January, the company paid $131.3 million to acquire a full ownership stake in The Forum, a 636,000-square-foot campus 10 miles from downtown.

The portfolio also includes two properties in Charlotte: the 479,000-square-foot Capitol Towers and the 291,000-square-foot Morrocroft Centre. PAC acquired the two Capitol Towers in late 2018 for $208.8 million, according to CommercialEdge data, with the three-building Morrocroft Centre fetching a $107.6 million price tag in December 2019.

Non-core Atlanta component

Armour Yards in Atlanta

In addition to the four assets in North Carolina, the portfolio also includes several non-core properties in Atlanta. Armour Yards, a creative office campus which delivered in 2016 and 2017, totals 187,000 square feet and is located near another asset that was part of the transaction: a 36,000-square-foot office building at 251 Armour Drive NE. Due to Highwoods’ preferred focus on core office properties, PAC will continue to market these assets for sale to a third party.

Finally, the portfolio will include a mezzanine loan to build 8West, a nine-story building in Atlanta’s Midtown district. The 195,000-square-foot project would replace an existing, 123,501-square-foot single-story office asset that PAC acquired in late 2016.

The post Highwoods Commits to $769M Office Buy appeared first on Commercial Property Executive.

3300 Waterfield Drive. Image courtesy of Tri Properties and Wigeon Capital

Wigeon Capital has broken ground on the first phase of its 410,000-square-foot industrial project in Garner, N.C.

READ ALSO: Vacancy Drives Industrial Pricing Surge

The developer has started construction on 3300 Waterfield Drive, a flex warehouse building within Greenfield Business Park. The 58,000-square-foot facility will be built with 22-foot clear ceiling heights, 13-foot dock-high loading doors, 110 parking spaces, two entry access points and a 130-foot truck court. The first property is expected to be complete in late summer 2021, Jimmy Barnes, executive vice president of Tri Properties | NAI Carolantic Realty who’s tasked with leasing the property, told Commercial Property Executive.

The industrial property will be located near the intersection of U.S. Highway 70 and Interstate 40, near the distribution hubs for Papa John’s and Domino’s, and 7 miles south of downtown Raleigh, N.C. Barnes said in prepared remarks that 3300 Waterfield Drive was meant to accommodate the high demand for flex space in the Triangle region of North Carolina.

Elsewhere in Greenfield Business Park, Duke Realty Corp. delivered a 165,921-square-foot speculative warehouse in 2020, representing the eighth building in its industrial campus.

Wigeon to start later phases this year

Once 3300 Waterfield Drive is complete, Wigeon expects to break ground on the second phase of its industrial project in the summer, Barnes told CPE. The developer plans to start construction on Laurensfield Court, a 96,000-square-foot warehouse building located on a 13-acre site next to 3300 Waterfield Drive. The second property will be built with 32-foot clear heights, 15-foot dock-high loading doors, 177 parking spaces and a 135-foot truck loading court. Barnes also told CPE that Wigeon plans to complete Laurensfield Court in the first quarter of 2022.

The third phase of the project is expected to break ground by the end of 2021, Barnes told CPE. The final phase, Greenfield 27, will include three buildings on a 27-acre site adjacent to the other two buildings. The three buildings will include a 150,000-square-foot bulk distribution facility and two additional smaller flex buildings that are 58,000 and 48,000 square feet, respectively.

Besides its three-phase industrial project in Garner, Wigeon is also working on two other flex building projects at Brier Creek and Sigma Drive in Raleigh.

The post Wigeon Capital Breaks Ground on Raleigh-Area Project appeared first on Commercial Property Executive.

The Roxboro at Venable. Image courtesy of Duda|Paine Architects

Duda|Paine Architects, designer of The Roxboro at Venable in downtown Durham, N.C., announced that the office project is on the verge of reaching a pivotal point in its development.

Developers Trinity Capital Advisors and SLI Capital will top out on the 202,000-square-foot building tomorrow, Feb. 25, 2021.

READ ALSO: CBRE Backs Industrious in $200M Flex-Office Deal

Sprouting up at the center of downtown Durham, The Roxboro will be part of the mixed-use Venable Center, a revitalized warehouse district that dates back to 1906, when it served as the brick-building warehouse complex for the Venable Tobacco Co. Duda|Paine has designed The Roxboro to serve as a Class A destination for life sciences companies with such features as built-in accommodations for lab infrastructure, higher floor-to-floors, additional mechanical chase space and dedicated back-up power.

“These features address the emergence of life science buildings in the market and a need for space that can easily be a lab building or an office building or a combination of the two,” a spokesperson for Duda|Paine Architects, told Commercial Property Executive.

Duda|Paine designed the 8-story Roxboro well before the COVID-19 health crisis, but the firm handily implemented changes to its original concept to accommodate what will become the new normal. “The entire circulation path through the building from the entrance to the elevators, core areas and restrooms has been modified to make a healthier environment for a post-COVID-19 workplace,” the spokesperson said. “The client wanted the entry and exit process to be as touchless as possible, so several touchless tech systems were integrated.” Touchless tech systems include foot pulls for restroom doors; auto doors at the lobby entry; elevators with a Destination Dispatch system by Otis and ionic air purification technology.

The expediting of a trend

No facet of the commercial real estate industry, architecture included, has gone untouched by the pandemic. Duda|Paine saw a trend that had been emerging before the crisis become more important to clients: health and wellness. “A core expertise of Duda|Paine Architects is design for health and wellness, and we had seen a rise in office projects integrating wellness features such as sky terraces that provide access to the outdoors and fitness facilities even before the pandemic,” the spokesperson added. The Roxboro will feature open-air sky terraces and a ground-level fitness facility to be shared with Venable’s residential apartment dwellers as well.  The Class A office building is on schedule to reach completion in the third quarter of 2021.

The post Roxboro at Venable Tops Out in Durham appeared first on Commercial Property Executive.

Aerial view of Raleigh Iron Works. Image courtesy of Raleigh Iron Works

Jamestown and Grubb Ventures have started construction on the first phase of Raleigh Iron Works, a mixed-use development set to include some 500,000 square feet of office space, 90,000 square feet of retail, as well as 220 residential units. Brasfield & Gorrie is the general contractor for the project.

READ ALSO: Chicago’s $3.8B Bronzeville Lakefront Revamp Gets Pivotal Approval

The first phase of Raleigh Iron Works calls for the redevelopment of vintage mills and warehouses into office and retail space, along with the addition of a new seven-story multifamily building. The plan also includes a structured parking deck with approximately 700 spaces as well as 115 surface slots. Residents will also have access to ample green space, outdoor dining, public art, as well as a pedestrian-friendly greenway connection to other nearby attractions.

Retail street at Raleigh Iron Works. Image courtesy of Raleigh Iron Works

CBRE will handle office leasing. “We are just launching the leasing process in earnest, but the interest has been strong with both local concepts and nationals. No leases to report yet,” a Raleigh Iron Works spokesperson told Commercial Property Executive. 

While the project was already well-suited for a post-pandemic world, the developers made additional adjustments, including hands free entry systems, enhanced filtration in HVAC systems and other operational changes to minimize touch points. Completion of the first segment is scheduled for mid-2022.

“We are focused on the current phase but once fully underway we will start planning the future phases so that they can follow our initial phase,” the Raleigh Iron Works spokesperson added.

Residential East Elevation at Raleigh Iron Works. Image courtesy of Raleigh Iron Works

Located at 2200 Atlantic Ave., on a 18-acre site, the development is within 1 mile of Interstate 440. Downtown Raleigh is 2 miles from the project. The Iron Works is also adjacent to Dock 1053, a 185,000-square-foot, mixed-use creative community developed by Grubb. The project includes retail, warehouse, office, and manufacturing space.

In December 2020, Jamestown sold a 50 percent stake in the 1.4 million-square-foot Innovation and Design Building in Boston’s Seaport District. Newmark represented the seller.

The post Jamestown, Grubb Ventures Break Ground on $150M Raleigh Project appeared first on Commercial Property Executive.

301 Hillsborough. Image courtesy of Barings

The Fallon Co. and Barings have closed a joint venture for the recapitalization of 301 Hillsborough, the trophy office project within Fallon’s mixed-use Raleigh Crossing development in downtown Raleigh, N.C.

READ ALSO: CMBS Performance Stable For Now: KBRA

The partners have not disclosed the financial terms of the joint venture. However, when Fallon broke ground on the approximately 280,400-square-foot tower in the summer of 2019, the Downtown Raleigh Alliance listed the building’s development cost as $160 million.

Located at 301 Hillsborough St., 301 Hillsborough constitutes the initial phase of Raleigh Crossing, which will consist of three towers rising from a parking podium and retail base. With the assistance of exclusive leasing agent CBRE, the 19-story office building landed Pendo as its first tenant in a spring 2019 prelease agreement for 125,000 square feet, or 45 percent of the space. The state-of-the-art, Duda Paine Architects-designed structure will also feature more than 12,000 square feet of street-level retail space, a host of coveted amenities, smart building systems and green design elements.

Fallon and Barings have partnered on projects in the past and this time around, Barings found 301 Hillsborough an ideal fit for its value-add real estate investment strategy that centers on market locations bolstered by a highly educated workforce and a substantial STEM employer presence. The recapitalization comes as the construction of 301 Hillsborough reaches 50 percent completion.

Recapitalization trending

Some experts saw it coming in 2020. “We predicted rising interest in recapitalizations and a subsequent increase in recap transaction volume in the years ahead, and the pandemic seems to have given that call a boost as well,” according to advisory firm Park Madison Partners’ 2021 outlook report. Notable transactions in the fourth quarter include Spear Street Capital’s recapitalization of the 856,600-square-foot Arborcrest Corporate Campus in Blue Bell, Pa., with the $225 million sale of a 90 percent stake in the life science asset to Sidra Capital. Additionally, Columbia Property Trust Inc. and Allianz Real Estate partnered on the recapitalization of the 381,000-square-foot office building at 221 Main St. in San Francisco in a deal that valued the asset at $400 million.

It appears 2021 will have no shortage of recap activity. “Real estate private fundraising will pick up, with recapitalizations and longer-life vehicles gaining in popularity,” according to the Park Madison report.

The post Barings, The Fallon Co. Recap Raleigh Office Project appeared first on Commercial Property Executive.

Cary Towne Center. Image via Google Street View

Epic Games Inc. has purchased Cary Towne Center, a 980,000-square-foot shopping mall in the Research Triangle, from Turnbridge Equities, which acquired the asset in January 2019. The buyer plans to convert the 87-acre property into its new global headquarters campus by 2024, comprising office and retail space.

The mall changed ownership back in 2019, after the loss of three of its five anchor tenants, with its occupancy rate dropping to 65 percent. The current deal cancels Turnbridge’s plans to revitalize the struggling mall into a mixed-use development, labeled Carolina Yards. The first phase would have comprised 1.2 million square feet of proposed office, retail and residential space, as well as a hotel. Last April, the company acquired another mixed-use development in the Triangle. The Creamery, a former dairy plant in Raleigh, N.C., now functioning as a commercial property, traded for $34.7 million. 

Making Local History

Epic Games headquarters at 620 Crossroads Blvd.

Epic Games has been based in Cary for more than two decades. The video game and software developer currently operates at 620 Crossroads Blvd. The company purchased the 115,000-square-foot building in 2007 for $1.6 million, CommercialEdge data shows.

Cary Towne Center is located at 1105 Walnut St., southeast of downtown. The mall sits 2 miles from the interchange between interstates 440 and 40, and 10 miles east of central Raleigh.

Stephen Porterfield of Capital Associates represented Epic in the transaction. Construction of the campus is set to begin this year. Across the street from the site, a partnership of Hines, Columbia Development and USAA Real Estate is developing Fenton, a mixed-use project spanning 69 acres. Last November, the venture received $199 million in construction financing, one of the largest commercial development mortgages in the Triangle’s history.

The post Epic Games to Convert Mall to Global HQ appeared first on Commercial Property Executive.

Merritt Capital Business Park. Image courtesy of Merritt Properties

Merritt Properties has broken ground on a speculative light industrial/flex project in Wake Forest, N.C. Merritt Capital Business Park is slated to encompass up to 452,500 square feet on 74 acres, with completion planned for the third quarter of 2021.

With site plans approved in the summer of 2020, the development is set to include up to seven structures between 30,000 and 140,000 square feet. Clear heights will range between 18 and 24 feet, and rear-loaded docks and surface parking will be available. The project is targeting small to mid-size tenants in search of flex space for office, manufacturing or warehouse purposes, Keith Wallace of Merritt Properties said in prepared remarks.

The property is situated along Ligon Mill Road and Unicon Drive, 5 miles southwest of the interchange between Interstate 540 and Route 1. Central Raleigh is 14 miles away, while Durham is 24 miles west.

Preleasing is underway, with Larry Lakins, Hunter Willard and Andrew Young of Colliers International in charge. Merritt Construction Services is the general contractor. WithersRavenel, Maurer Architecture, Soil & Environmental Consultants, McKim & Creed and S&ME are also involved in the project.

Earlier this year, Merritt broke ground on Merritt TW Crossing, another industrial project outside of Durham. The property will feature 282,471 square feet across four buildings. Shimadzu Corp. has signed a 7,305-square-foot lease within the first structure that is roughly 90 percent leased and is expected to deliver in January 2021.

The post Merritt Kicks Off Raleigh-Durham Industrial Park Project appeared first on Commercial Property Executive.

Greenfield North. Image courtesy of Colliers International

Duke Realty has named Colliers International to oversee leasing efforts for the industrial developer’s portfolio in the Raleigh-Durham, N.C., metro. The owner’s Triangle footprint includes 26 buildings encompassing 3.1 million square feet. At the time of the announcement, the assets were more than 98 percent leased. 

The warehouses delivered between 1990 and 2020, CommercialEdge data shows. The portfolio comprises:

• Walnut Creek, a five-building campus encompassing 527,246 square feet;
• Greenfield North, an eight-building park spanning 905,868 square feet with land to develop an additional 136,000-square-foot facility;
• Woodlake Center, an 801,046-square-foot complex comprising seven buildings;
• Perimeter Park, a four-building property totaling 358,036 square feet;
• CenterPoint, two buildings spanning 555,376 square feet.

Colliers International Senior Vice President & Principals Larry Lakins and Hunter Willard, along with Assistant Vice President Andrew Young, will market the available space within the portfolio. The trio initially landed the leasing contract in October 2019 while working for Cushman & Wakefield. Earlier this month, Colliers hired the team which retained the right to market the properties.

Earlier this month, Duke Realty paid $40.6 million for an R&D/office park totaling 286,330 square feet in San Jose, Calif. The company intends to demolish the existing structures and build a 303,117-square-foot speculative warehouse at the site.

The post Colliers to Lease 3.1 MSF Triangle Industrial Portfolio appeared first on Commercial Property Executive.

Fenton. Image courtesy of Hines

November was an active month for Raleigh-Durham’s commercial real estate sectors, with both investors and developers focusing on mixed-use and industrial assets. As a result, several large transactions closed across the metro, led by a handful of major industry leaders. Developments included both new projects and existing assets slated for conversion. In addition, office construction carried on full speed ahead, with nearly 5 million square feet underway. Catch up with our November list of Raleigh-Durham must-reads:

1. DEAL – FCP, Kane Realty sell Raleigh mixed-use asset for $236 million.

An institutional client affiliated with MetLife Investment Management acquired The Dillon, a 2.5-acre mixed-use development in the Warehouse District. The 2018-completed property at 223 S. West St. comprises 221,300 square feet of office space, 52,600 square feet of retail and 271 residential units across two six-story buildings. The 18-story, LEED Gold-certified structure occupies a full city block next to Union Station. JLL assisted the seller in the deal.

2. FINANCING – Hines partnership gets $199.2 million for Cary project.

Bank OZK provided the four-year, floating-rate financing package for the construction of Fenton, a $1 billion mixed-use project between Hines, Columbia Development and USAA Real Estate. The project’s first phase will consist of 345,000 square feet of retail, and completion is slated for April 2022. The 69-acre development at 855 Cary Towne Blvd. will also include a 200,000-square-foot office component, a 175-key hotel and a 357-unit luxury community.

3. DEAL – Blackstone acquires Durham assets for $211.2 million.

In the first of two deals, the private equity giant purchased the two-building, 323,000-square-foot Patriot Park Phase I for $31.2 million from Strategic Capital. Completed in 2018, the Durham warehouses at 4032 Patriot Park Drive and 2 Freedom Court are within 3 miles of interstates 40 and 540. Separately, the firm acquired six parks in Greensboro which Highwoods Properties sold for $180 million. PGIM Real Estate arranged $120 million in floating-rate financing for the two acquisitions.

4. FINANCING – Longfellow lands $52.8 million for Morrisville conversion.

MetLife Investment provided the borrower with the five-year, floating-rate financing arranged by JLL. Longfellow acquired the 341,500-square-foot Perimeter’s Edge and plans to repurpose it into a life science campus. The single-story buildings at 2450 and 2600 Perimeter Park Drive, 507 Airport Blvd. and 515 McCrimmon Parkway are within the 3 million-square-foot Perimeter Park, one of the largest office campuses in the Research Triangle.

5. DEAL – Realty Income pays $40.9 million for Garner distribution center.

Oak Street Capital sold the 133,500-square-foot Martin Brower/McDonalds Distribution Center, according to Triangle Business Journal. The Class A asset last traded in 2015 for $35 million. Situated on 20 acres at 1400 N. Greenfield Parkway, the single-story building was completed in 2008. The property is some 5 miles from downtown Garner, just north of Interstate 40 and adjacent to Duke Realty’s Greenfield North Business Park.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – November 2020 appeared first on Commercial Property Executive.

Southport Business Park, Building 13

A partnership of Starwood Capital Group and Trinity Capital Advisors has purchased the 17-building Southport Business Park in Morrisville, N.C., from GID. The large-scale, flex-to-life science conversion opportunity traded for $208.6 million, according to public records. JLL Capital Markets represented the seller.

READ ALSO: Repositioning Commercial Buildings Into Life Science Facilities: Q&A

Southport Business Park is located on 114 acres at Aviation Parkway, 3 miles south of Raleigh-Durham International Airport and comprises 911,702 square feet. Additionally, the property includes three lots, zoned for 200,000 square feet of commercial space.

The site is situated in proximity of Interstate 40 and within a 14-mile radius of both Raleigh, N.C. and Durham, N.C. The light industrial/flex business park already holds a significant lab component, facilitating its potential transition into the life sciences industry. The largest science research park in the U.S. —Research Triangle Park in Durham— is 7 miles away.

Senior Director Patrick Nally, Senior Managing Director Ryan Clutter and Associate Valerie Derrick made up the JLL Capital Markets team working on behalf of GID.

Earlier this year, Starwood Capital Group acquired the first two phases of Airport Logistics Park in Nashville, Tenn. The company paid $62.3 million for the nearly 400,000-square-foot industrial complex.

The post Starwood Capital Group JV Buys Business Park for $209M appeared first on Commercial Property Executive.

Perimeter’s Edge. Image via Google Street View

Longfellow Real Estate Partners has received a $52.76 million loan for the acquisition and repositioning of Perimeter’s Edge, a flex/office portfolio comprising 341,547 square feet across four buildings in Morrisville, N.C. JLL arranged the five-year, floating-rate financing provided by MetLife Investment. The new owner plans to repurpose the asset into a life science campus.

The properties are located at 2450 and 2600 Perimeter Park Drive, 507 Airport Blvd. and 515 McCrimmon Parkway, within Perimeter Park. The more than $3 million-square-foot office park is one of the largest in the Research Triangle.

Perimeter’s Edge is less than 3 miles of Raleigh-Durham International Airport, with interstates 540 and 40 nearby. Central Raleigh, N.C. and Durham, N.C, with their university clusters, are within a 15-mile radius of the site.

JLL’s Managing Directors Greg LaBine and Roger Edwards, along with Senior Director Martha Nay represented the borrower. MetLife’s Associate Director Brigitte Burkett originated the credit. Earlier this year, JLL and MetLife teamed up for the acquisition financing of another North Carolina asset. The three-building, mixed-use Metropolitan Midtown development changed hands for $90 million.

The post Longfellow Lands $53M Loan for North Carolina Life Science Conversion appeared first on Commercial Property Executive.

The Dillon. Image courtesy of FCP

FCP and Kane Realty Corp. have sold The Dillon, a mixed-use Class A property in downtown Raleigh, N.C., for $236 million. The buyer was an institutional client affiliated with MetLife Investment Management.

READ ALSO: Raleigh-Durham Commercial Real Estate Wrap-Up – October 2020

The Dillon added 221,300 square feet of office space, 52,600 square feet of retail, 271 multifamily units and a nearly 1,000-stall parking garage to Raleigh’s Warehouse District upon completion in 2018. Located at 223 S. West St., the 18-story, LEED Gold-certified structure occupies a full city block next to Union Station. The property replaced a 100-year-old warehouse.

FCP and Kane Realty had joined forces to break ground on the project in 2017, backed by a $103 million construction loan from PNC Bank. One year after delivery, the previous owners refinanced with a $140 million mortgage from the same lender in April 2019, CommercialEdge shows.

The property’s office space is fully leased, home to anchor tenant Arch Capital in addition to Spaces, Stewart Engineering and Inventure Civil. O-Ku Sushi, Oak Steakhouse and a number of other shops and restaurants fill out the retail component.

JLL worked on behalf of the seller in the deal. The team included Matthew Lawton, Ryan Clutter and Coleman Benedict, among others. Earlier in the year, Clutter assisted in the $80 million disposition of two mixed-use properties near North Carolina State University.

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408 Gallimore Dairy Road. Image via Google Street View

Blackstone Real Estate Income Trust has received a $120 million loan for the acquisition of 24 industrial properties in North Carolina. PGIM Real Estate arranged the floating-rate financing for the 3 million-square-foot portfolio deal in Greensboro and Durham. 

Public records show that Blackstone had acquired the portfolio through two deals totaling $211 million. Highwoods Properties traded the Greensboro parks for $180 million, while Strategic Capital Partners sold the Durham buildings for $31.2 million.

Patriot Park in Durham comprises two properties located at 4032 Patriot Park Drive and 2 Freedom Court. The buildings are located in the Research Triangle submarket, within 3 miles of interstates 40 and 540. Raleigh-Durham International Airport is 6 miles from the assets.

The Greensboro component includes six parks near Piedmont Triad International Airport. Public records indicate the properties are located along the southern and western sides of the airport. One of the largest structures is an approximately 435,000-square-foot warehouse at 657 Brigham Road, home to Carson Dellosa Education and outdoor furniture manufacturer DEDON.

Blackstone has made a number of high-profile moves this year. In October, the private equity firm announced the $1.2 billion acquisition of Simply Self Storage from Brookfield Asset Management.

The post Blackstone Gets $120M Loan for North Carolina Industrial Buy appeared first on Commercial Property Executive.

Some 1.5 million square feet of office space was delivered year-to-date, with an additional 1.5 million square feet slated for completion by year-end. Projected deliveries for this year are expected to surpass last year’s completions of 2 million square feet by 30 percent. As the life sciences sector continues to showcase strong performance trends, an uptick in laboratory and research space development is expected going forward.

CommercialEdge identified the largest office projects underway in the metro as of November, listed below.

5. Tower Two at Bloc[83]

Tower Two at Bloc[83]. Rendering courtesy of Heritage Properties

M&T Bank provided $73.4 in construction financing. Gensler handles the design services, while Whiting-Turner Contracting Co. serves as the general contractor. The property is the latest addition to Bloc[83], a mixed-use project encompassing another office tower dubbed One Glenwood and a 126-key Origin Hotel. Tower Two is less than a mile from North Carolina State University’s main campus and Centennial Campus. Due to its proximity to a talented workforce, Envestnet has chosen the project as its upcoming North Carolina headquarters.

4. The Stitch

The Stitch. Rendering courtesy of Gensler

Equator Capital Management and OCS Capital are developing the 248,000-square-foot office project. Construction on the single-story property started in June 2019, with completion scheduled for the end of 2020. Knighthead Funding provided $34 million in construction financing. The development team includes Gensler, Choate Construction Co. and Kimley-Horn.

The Stitch represents the redevelopment of the 1981-built, formerly vacant Morrisville Outlet Mall into creative office space. The asset is situated on 25 acres at 1001 Airport Blvd. in Morrisville, N.C., close to Interstate 40 and Raleigh-Durham International Airport and 5 miles from Research Triangle Park.

3. Raleigh Crossing

Raleigh Crossing. Rendering courtesy of The Fallon Co.

The Fallon Co. started work on Raleigh Crossing in September 2019. The 292,543-square-foot, 10-story property includes 280,381 square feet of office space and 12,162 square feet of first-floor retail, with completion scheduled for late 2021. First National Bank of Pennsylvania originated an $85.9 million construction loan on behalf of the developer.

The Duda|Paine Architects-designed project is located at 301 Hillsborough St. in downtown Raleigh and is the first phase of a mixed-use project that will also include a 165-key hotel, a 135-unit community and 5,500 square feet of retail space. Upon completion, software startup Pendo plans to move its corporate headquarters to the building.

2. Advance Auto Parts Tower

Advance Auto Parts Tower. Rendering courtesy of Duda|Paine Architects

Kane Realty Corp.’s upcoming 336,834-square-foot asset will house the headquarters of Advance Auto Parts, Raleigh’s only Fortune 500 company. The building, slated for delivery by late 2020, will include 328,600 square feet of office space, 8,234 square feet of first-floor retail and eight levels of parking. Bank OZK provided $84.7 million in construction financing. Duda|Paine Architects was selected to spearhead the design efforts.

1. Hub RTP

Hub RTP. Rendering Courtesy of Duda|Paine Architects

The largest property underway is Hub RTP, a 44-acre mixed-use community in the metro’s Research Triangle Park. The property is emerging at the junction of NWC State Route 54 and Davis Drive and is centrally located between Raleigh, Durham and Chapel Hill, N.C. The Research Triangle Foundation broke ground on the $1.5 billion project this September and completion is slated for 2023.

The project will include 1 million square feet of office space, a significant portion of retail, 800 residential units, a four-star hotel and 14 acres of green space. KDC is responsible for developing the office component and the infrastructure for the project. Faulconer Construction Co. acts as the general contractor, while Duda|Paine Architects provided the design plans.

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Fenton. Image courtesy of Hines

A joint venture between Hines, Columbia Development and USAA Real Estate has landed a $199.2 million construction loan for the first phase of Fenton, a mixed-use development in Cary, N.C. Bank OZK provided the four-year, floating-rate financing package, according to Wake County records.

The 69-acre site is located at 855 Cary Towne Blvd., close to Interstate 40 and adjacent to Wake Med Soccer Park. The property is across the street from Turnbridge Equities’ 1 million-square-foot Cary Towne Center shopping mall and 10 miles west of downtown Raleigh. 

Betting big on retail and office

JLL arranged the senior note, believing it to be the second-largest commercial development mortgage in the Triangle’s history. The brokerage also noted that the loan is the largest project financing origination nationwide for a retail-driven development since the onset of the coronavirus pandemic, citing data from Real Capital Analytics.

The developer expects construction to go vertical later this month. The total cost of the project is $1 billion, according to Triad Business Journal. The first phase will include 345,000 square feet of retail space, anchored by a 125,000-square-foot Wegmans Food Market and a 36,000-square-foot CMX CinéBistro, a dine-in movie theater. The development will also include a 200,000-square-foot office component, 175-key hotel and 357-unit luxury community called The Canopy at Fenton. The first phase is slated for completion in April 2022.

JLL Managing Directors Chip Sykes and Roger Edwards secured the financing on behalf of the borrower. Last year, HFF, now part of JLL, facilitated joint venture equity investment for the project.

In April, Edwards and colleague Christopher Peck facilitated a $19.5 million loan for Turnbridge Equities’ acquisition of The Creamery, an 82,000-square-foot mixed-use asset in Raleigh.

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Raleigh. Image by Mark Thomas via Pixabay.com

Raleigh-Durham’s commercial real estate sectors showed some significant activity in October. Even as office demand remains low and landlords offer concessions, one major suburban project landed a major development loan. The metro’s industrial activity also picked up, in line with national trends. Read our October list of Raleigh-Durham must-knows: 

1. FINANCING – Office development scores $199 million construction loan.

Bank OZK’s loan to Columbia Development encompasses 275,940 square feet across four buildings in Cary, according to Yardi Matrix. In addition to office space, the project also includes some 46,000 square feet of retail space. Located at 3110 Fenton Main St., the 92-acre site is within 8 miles of downtown Raleigh. Completion of the first structures is slated for 2021.

2. DEAL – Turnbridge Equities acquires 180 KSF property for $37.2 million.

Tower at Mutual Plaza is a 15-story office building located on 3 acres at 411 W. Chapel Hill S. Knighthead Funding provided the buyer with $21 million in acquisition financing. In 2015, seller Greenfire Development began an $11 million renovation at the high-rise, renovating the lobby and other common areas. Downtown Durham is within walking distance of the building.

3. LEASING – Online retailer signs 144 KSF lease at industrial facility.

CandleScience is set to occupy the space at Regional Commerce Center, located at 1247 Person St. Foundry Commercial assisted the tenant and the landlord, Scannell Properties. The facility features 17 dock doors, high-bay LED lighting fixtures, a mechanically-attached, insulated roof and approximately 120 parking spaces. The property is within 2 miles of downtown Durham and 11 miles of Raleigh-Durham International Airport. The tenant is expected to occupy the space starting in 2021.

4. DEAL – Nationwide Realty Investors sells office building for $22 million.

The 159,041-square-foot property is located at 4401 Creedmoor Road, on roughly 17 acres. State Employees’ Credit Union acquired the asset. According to Yardi Matrix data, Nationwide Realty had purchased the building in 1987 from Davidson & Jones. Built in 1975, the property was completely renovated in 2017. The surrounding area has several retail options, including Crabtree Valley Mall. Downtown Raleigh is 6 miles away.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – October 2020 appeared first on Commercial Property Executive.

Tower at Mutual Plaza. Aerial courtesy of Turnbridge Equities

Turnbridge Equities has completed the $37.2 million acquisition of Tower at Mutual Plaza, a 180,000-square-foot office property in Durham, N.C. The company funded the purchase with a one-year, $21 million loan from Knighthead Funding, according to Yardi Matrix data.

The new owner purchased the asset through a foreclosure action after it acquired a subordinate interest in a $31 million loan that encumbered the property. In December 2017, Knighthead Funding provided that note to Greenfire Development, Yardi Matrix shows. In December 2019, Greenfire defaulted on the mortgage, which had an outstanding balance of $37.2 million at the time of foreclosure.

Located on 3 acres at 411 W.  Chapel Hill St., the 15-story building was completed in 1965. The seller executed an $11 million capital improvement plan on the high-rise in 2015, which included remodeling the property’s common areas and lobby and renovating the exterior courtyard and facade.

The buyer will take advantage of the renovation in the leasing of the asset’s remaining vacancy. The current tenant mix includes the building’s namesake, North Carolina Mutual Life Insurance Co., as well as Duke Health, Duke University, the Department of Veteran Affairs and architecture firm Perkins & Will.

In April, Turnbridge Equities paid $34.7 million for The Creamery, an 82,000-square-foot mixed-use asset in downtown Raleigh, N.C. The company plans to invest $1 million in renovating the building. Northpond Partners sold the property.

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Hub RTP. Rendering courtesy of Duda|Paine Architects

At the start of the month, the average number of new COVID-19 cases in North Carolina was declining. However, that trend did not continue, as the state saw a 28 percent increase in the number of new infections over the past two weeks, according to The New York Times. Meanwhile, several landmark deals closed in Raleigh-Durham in September, with investors poured capital into properties across a wide spectrum of asset classes. On the development side, companies moved ahead on large-scale projects that will significantly increase the market’s office supply. Read our September selection of Raleigh-Durham must-knows:

1. DEVELOPMENT – Research Triangle Foundation kicks off 2 million-square-foot project.

The company held a virtual ground breaking ceremony for Hub RTP, a 43-acre campus with an estimated cost of $1.5 billion. The development is set to include office, hotel and retail space, as well as 800 apartments. Faulconer Construction serves as the general contractor for the Duda|Paine Architects-designed project. JLL will oversee leasing efforts for the office component, while Middle-America Apartment Communities will manage the residential side.

2. DEAL – Mapletree Investments pays $189 million for three office assets.

Starwood Capital Group sold a three-property portfolio encompassing 519,812 square feet in Morrisville, N.C. The deal included two buildings in Lenovo’s U.S. headquarters campus at 1009 at 1025 Think Place, and another property at 5221 Paramount Parkway, according to Yardi Matrix. Completed in 2006 and 2008, the assets are fully leased to Lenovo, Credit Suisse and UNC Medical Center.

3. SUSTAINABILITY – Duke University signs up for 101 MW of solar power.

The institution signed the renewable power agreement under Duke Energy’s Green Source Advantage program. The move is part of the university’s goal to achieve carbon neutrality by 2024. Under this initiative, the academic institution plans to reduce on-campus emissions by 84 percent and cut down on remaining emissions by investing in carbon offsets. The agreement is expected to reduce the university’s carbon emissions by nearly 70 percent in the next two years.

4. DEAL – Realty Income Corp. buys Wegmans-anchored asset for $35 million.

LeylandAlliance sold the 103,000-square-foot property in Cary, N.C. The store is part of the Twin Lakes Center, a 34-acre mixed-use campus developed by the seller. The center also encompasses an additional 25,000 square feet of retail, as well as medical office space, along with nearly 400 residential units under construction. Located at 3710 Davis Drive, the building was recently completed.

5. DEAL – Mountain Real Estate Capital sells office park.

Boyd Watterson Asset Management paid $41.6 million for the 206,829-square-foot Somerset Park, a four-building campus at 4401 Bland Road in Raleigh, Yardi Matrix data shows. The property was built in 1987. The asset last traded in 2015, when Somerset Investments sold it for $27 million. Following that acquisition, Mountain Real Estate Capital renovated the property.

6. DEAL – Airport industrial facility changes hands for $42.8 million.

Ares Management sold the 580,000-square-foot warehouse to TPG Capital, according to Triangle Business Journal. The building occupies 32 acres at 900 Aviation Parkway and was completed in 1985. The asset previously traded in 2014, when Pearlmark Real Estate Partners sold it for $26.9 million. The tenant roster includes Burt’s Bees, William M. Bird and McCollister’s Transportation.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – September 2020 appeared first on Commercial Property Executive.

Image courtesy of Duke University

Duke University has set a goal to become carbon neutral by 2024. As part of the plan to achieve this objective, the university became the first academic institution to sign a renewable power agreement under Duke Energy’s Green Source Advantage (GSA) program through which solar energy is further expanded in North Carolina.

The university presented in 2009 its Climate Action Plan, an initiative it updated last year with a goal of reducing on-campus emissions by 84 percent by 2024 and slashing the remaining emissions through investment in carbon offsets. The new agreement consists of 101 megawatts of solar capacity that is projected to result in a nearly 70 percent reduction in the university’s carbon emissions by 2022. Moreover, these 101 megawatts will meet half of the institution’s annual electricity demand.

The power will be generated at three solar facilities, which are yet to be built in the state by Pine Gate Renewables in partnership with Silver Pine Energy Holdings. The solar developments are anticipated to begin commercial operation in 2022.

READ ALSO: Duke Energy Sets Net-Zero Climate Goal

The GSA program builds upon North Carolina’s 2017 landmark solar legislation bill signed by Gov. Roy Cooper—the Competitive Energy Solutions for North Carolina—which proposed 2.6 gigawatts of solar energy to be built over three and a half years. The GSA enables large energy users to offset their power purchases by securing renewable energy from projects connected to Duke Energy’s grid. The customer is entitled to keep the RECs of the projects and use the energy purchases to satisfy the sustainability of carbon-free targets.

In addition to the GSA contract signed with Duke University, two other agreements have been announced this year—one with the City of Charlotte, which will buy the output from a 35-megawatt facility in Iredell County, and the other with Bank of America, which will buy the electricity generated by a 25-megawatt solar project planned by Silver Pine Energy Holdings.

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Durham.ID. Image courtesy of Longfellow Real Estate Partners

While the number of new coronavirus cases declined in the first half of the month, the last two weeks of August saw a notable uptick. However, even if the future of Raleigh-Durham’s commercial real estate sector remains uncertain, several landmark deals closed. With scientists worldwide racing to develop a COVID-19 vaccine, investors chose to hedge their bets by pouring capital in some of the most in-demand asset classes: life sciences and research and development. Here is our August list of Raleigh-Durham must-knows:

1. DEAL – Longfellow Real Estate pays $138 million for office asset.

The company, in partnership with Bain Capital Real Estate, had already held an interest stake in Durham.ID, the 330,369-square-foot property, but now fully owns the asset through its Longfellow Strategic Value Fund. JLL Capital Markets represented Bain Capital. Located at 200 and 300 Morris St., the complex encompasses two buildings delivered in November 2018. The property is the first phase of the Durham Innovation District, a 1.8 million-square-foot project containing office, lab, retail and residential space.

2. DEAL – Alexandria Real Estate buys Research Triangle Park portfolio for $590.4 million.

Karlin Real Estate completed the disposition of seven parcels totaling 253 acres in the Parmer RTP campus, according to the Triangle Business Journal. The research and development assets are located at 5 and 41 Moore Drive, 14 TW Alexander Drive and 1818 and 2400 Ellis Road. The buyer funded the purchase through three self-financed loans totaling $593 million, Durham County records show.

3. PEOPLE – Lee & Associates hires retail veteran.

The company hired Christina Coffey to serve as vice president on its landlord and tenant representation team. Prior to joining the firm, Coffey worked as a vice president for CBRE since 2013. She also previously held various roles at Hunter & Associates, where she began her real estate career in 2002. During her 18 years in the industry, Coffey closed more than 475 retail transactions totaling $190 million.

4. DEAL – Veteran Administration clinic changes hands.

Carrboro Capital sold a 26,871-square-foot medical office building for $7.1 million, according to Yardi Matrix data. Greenleaf Management purchased the property, backed by a $4.6 million acquisition loan from First National Bank of Pennsylvania. Located on 2 acres at 1830 Hillandale Road, the two-story structure delivered in 1970. The site is 2 miles north of the Durham VA Medical Center and 4 miles northwest of the city center.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – August 2020 appeared first on Commercial Property Executive.

Wegmans, West Cary. Image courtesy of JLL

Realty Income Corp. has acquired Wegmans, West Cary, a 103,000-square-foot, single-tenant retail property in Cary, N.C. JLL Capital Markets marketed the property on behalf of the seller, Leyland Twin Lakes LLC, an affiliate of LeylandAlliance.

The retail property, which sold for $34.8 million, anchors Twin Lakes Center, a walkable, 35-acre mixed-use project developed by Leyland. Besides the Wegmans, the Twin Lakes Center includes 25,000 square feet of retail and medical office space, as well as approximately 400 multifamily units under development.

READ ALSO: Retail Crisis Hits Small Shops the Hardest

The asset was completed earlier this year and is the second Wegmans store to open in the Carolinas. A family-owned regional supermarket chain, Wegmans is based in Rochester, N.Y., and operates 102 stores from New England to the Mid-Atlantic.

Wegmans, West Cary is located at 3710 Davis Drive, in one of the most affluent zip codes in the Raleigh-Durham MSA. Cary is also the second fastest-growing town in North Carolina.

The JLL Retail Capital Markets team representing Leyland was led by Senior Director Tom Kolarczyk, Director Ryan Eklund and Senior Managing Director Chris Angelone.

“The Twin Lakes development is an exceptionally well-conceived, Class A development,” Kolarczyk said in a prepared statement. “The sale of the Wegmans ground lease showcased the high demand for core, credit and long-term triple-net-leased assets.”

Quite the appetite

In its pursuit of single-tenant retail properties, Realty Income Corp. seems to take both smaller bites of that asset class and very large ones. Just a year ago, the company bought from CIM Group a retail portfolio of more than 450 properties, totaling about 5.1 million square feet and spread across 41 states, for $1.3 billion. At the time of sale, Dollar General was the most prominent tenant, occupying 145 properties and bringing in nearly 16 percent of the portfolio’s total rental income.

During a webinar earlier this year—but already well into the pandemic—D.J. Busch, managing director and head of retail research at Green Street Advisors, commented on the company’s appetite for grocery-anchored retail centers. According to Busch, these properties are bolstering strip center fundamentals overall, with resilience that’s hard to match elsewhere in the retail asset class currently.

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Merritt TW Crossing. Rendering courtesy of Merritt Properties

With the number of COVID-19 cases on the rise and North Carolina still in its second phase of reopening, Raleigh-Durham’s commercial real estate market faces an uncertain future. Investors largely have opted for a wait-and-see approach to new acquisitions: According to Triangle Business Journal, the market’s commercial investment volume in the second quarter dropped by 65 percent compared to the same period in 2019. However, though sales have declined, development and leasing activity continued. Here is our July selection of Raleigh-Durham must-reads:

1. FINANCING – Grubb Properties scores loan for Chapel Hill development.

Bank OZK provided the 106,000-square-foot speculative office project, known as The Gwendolyn, with a $21 million loan, according to Yardi Matrix. The developer broke ground in September 2019 with plans to deliver in 2021. Planned amenities include a fitness center, on-site café and bike locker. The four-story project is designed to achieve LEED certification. Located at 101 Glen Lennox Drive, the site is 1 mile from the University of North Carolina at Chapel Hill.

2. DEVELOPMENT – Merritt Properties breaks ground on Durham industrial project.

The developer signed a 7,305-square-foot lease with Shimadzu Corp. for space within the first structure of the four-building Merritt TW Crossing development. Located at the intersection of TW Alexander Drive and South Miami Boulevard, the full project will contain 282,471 square feet. Completion on the first building is scheduled for January 2021. CBRE represented the landlord, and JLL assisted Shimadzu with the lease.

3. LEASING – JLL to lease five North Durham buildings.

Moonbeam Capital owns the office and medical complex known as Durham Summit. The assets, built between 1984 and 1987, total 281,378 square feet and are located at 4020, 4101 and 4117 N. Roxboro Road and 3404 and 3414 N. Duke St., 2 miles from Interstate 85. JLL’s leasing team includes Dennis Hurley, John MacDonnell and Taylor McCuiston.

4. DEAL – Partnership sells Cambria Hotel in Durham.

According to Triangle Business Journal, Duke University acquired the two-building property for $9 million. The sellers, Concord Hospitality Enterprises and Robert Finvarb Cos., bought the asset for $10.2 million in 2015. The two buildings, comprising 148 guestrooms, are located at 3206 Elba St. and 400 Elf St. within the Duke University Medical Center. The new owner plans to rebrand the hospitality asset.

5. LEASING – Biotech firm inks full-building Research Triangle Park lease.

Cushman & Wakefield’s Deb Boucher and Paul Cranfill worked on behalf of bioMASON, while Lee & Associates represented the landlord. The property, which delivered in 1977, will become the company’s new headquarters. It has 14,000 square feet of office and 15,000 square feet of laboratory space with a future option to expand by another 30,000 square feet. Located at 2 Triangle Drive, the facility is within 7 miles of Raleigh-Durham International Airport.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – July 2020 appeared first on Commercial Property Executive.

Durham.ID. Image courtesy of Longfellow Real Estate Partners

Longfellow Real Estate Partners has paid $138 million to achieve full ownership of Durham.ID, a mixed-use office asset in Durham, N.C. The project is the first phase of the broader Durham Innovation District, a 1.8 million-square-foot development consisting of offices, lab, retail and residential space. Its sale marks the largest office investment transaction in the Southeast since the beginning of the COVID-19 pandemic.

READ ALSO: Top 10 Office Projects Under Construction in North Carolina

The previous owners included Longfellow and Bain Capital Real Estate, which was represented by JLL in the sale. A Longfellow representative told Commercial Property Executive that the company recapitalized the project and rolled it into an affiliate of its Longfellow Strategic Value Fund.

Durham.ID. Image courtesy of Longfellow Real Estate Partners

Located at 200 and 300 Morris St., the two-building office development offers a total of 330,369 square feet split into approximately 25,000-square-foot floorplates, the Longfellow spokesperson told CPE. Completed in November 2018, Durham.ID offers an outdoor courtyard, collaborative spaces, curated events and programming through Longfellow’s proprietary platform Elevate, and an eight-story parking facility with 1,225 spots, according to the spokesperson. Both buildings were able to achieve LEED Gold certification through its smart technology construction, installation of heat-reducing glass windows and other energy saving features.

The Longfellow spokesperson also told CPE that the Durham.ID office space is currently 83 percent occupied, while the company is in ongoing discussions with multiple prospective retail tenants for its 20,380 square feet of ground-floor space. In October, Longfellow secured another tenant for Durham.ID through a 25,000-square-foot lease with fintech company Spreedly.

Major mixed-use district

Longfellow is the owner and developer of the 1.8 million-square-foot Durham Innovation District, which will take several more years to complete. The project stretches 15 acres and includes 1 million square feet of new office and lab space, retail options, residential and hotel properties, as well as open space areas. Longfellow has found major tenants including Duke University, Duke Clinical Research Institute and Duda | Paine Architects, among others.

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2 Triangle Drive

Biotech company bioMASON has signed a full-building lease at the 30,400-square-foot 2 Triangle Drive within North Carolina’s Research Triangle Park. Cushman & Wakefield worked on behalf of the tenant, while Lee & Associates represented the landlord.

The building, which was completed in 1977, will become the company’s new headquarters. The tenant first moved into the park in 2013, occupying a small office in the North Carolina Biotechnology Center. After a short move to Raleigh, bioMASON returned to the RTP four years ago, occupying a 21,000-square-foot facility, which is located less than 10 minutes away from its new base. With the move, the previous facility will become a fully dedicated production plant.

bioMASON’s new headquarters is located on more than 12 acres and encompasses 14,000 square feet of office and 15,000 square feet of laboratory space, with the option to grow by another 30,000 square feet. The property also offers 135 parking spots. The facility is situated 7 miles from Raleigh-Durham International Airport, while the Triangle’s top universities—Duke, North Carolina State and University of North Carolina at Chapel Hill—are all within a 20-minute drive.

The Cushman & Wakefield team representing the tenant included Executive Director Deb Boucher and Associate Paul Cranfill.

While the ongoing health crisis is straining commercial real estate activity across the U.S., the Raleigh-Durham market recorded some activity in the past months and is relatively well-insulated going into the downturn thanks to its economic profile and overall employment composition. Just last month, Silicon Valley-based GRAIL Inc. announced it will establish a $100 million facility in the RTP.

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Woodlake 501. Image courtesy of Duke Realty Corp.

While some Fourth of July parades and firework displays will go forward and restaurants, salons and stores are open at limited capacity, the Raleigh-Durham commercial real estate market is facing its share of uncertainty. With the number of reported coronavirus cases and hospitalizations on the rise and the state still in the second step of its three-phase reopening, most investors remained on the sidelines, waiting for a clearer outlook. Here is our June selection of Raleigh-Durham real estate must-reads:

1. DEAL – Durham MOB trades for $33 million.

Welltower sold the 67,644-square-foot Croasdaile Commons to a partnership between Kayne Anderson Capital Advisors and MB Real Estate. Capital One provided a five-year acquisition loan. The property last changed hands in 2014, when Glenwood Development Co. sold it for $27 million. Located at 1821 Hillandale Road, on a 5-acre site, the asset is just off Interstate 85.

2. DEVELOPMENT – Production facility to open in Research Triangle Park.

GRAIL Inc., a California-based health-care company, has selected the area for the opening of the $100 million property with the assistance of Newmark Knight Frank. The building is slated to encompass 200,000 square feet. In addition to a laboratory, the facility will also feature office and warehouse space. NKF’s team included Jay Phillips, Wayne Kumagai, Ben Stern and Doug Brock.

3. LEASING – Duke Realty Corp. lands tenant at Morrisville building.

A digital graphics producer signed a lease for the entirety of Woodlake 501, a 153,990-square-foot warehouse. The property features 28-foot clear heights, eight dock-high doors, 260 parking spaces, and ESFR sprinkler systems. Located at 501 Innovation Ave., the warehouse is one of seven buildings in Woodlake Center, Duke’s 812,000-square-foot distribution park.

4. LEASING – JLL arranges 50,000-square-foot lease in Chapel Hill.

John MacDonell and Ashley Lewis assisted State Employees’ Credit Union, the owner of The Parkline, an office asset located at 1830 Fordham Blvd. The tenant is slated to move into the building in late 2020. The property, which underwent a complete core and shell renovation, features open-air patios and outdoor seating, as well as a new fitness center and refurbished lobby.

The 210,000-square-foot property came online in 1973 and last traded in 2015, when Blue Cross Blue Shield sold it for $35 million, Yardi Matrix data shows. 

5. DEVELOPMENT – Local authorities pause major downtown Raleigh project.

Due to the prospect of free-falling hospitality tax revenue figures caused by the pandemic, the City has halted proceedings for the planned development on the site of two parking lots next to the Duke Energy Center for the Performing Arts, according to the Triangle Business Journal. The project, which was in the stage of soliciting proposals, called for a 500-key hotel and a mixed-use Class A tower.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – June 2020 appeared first on Commercial Property Executive.

112 W. Seminary Ave. Image courtesy of Berkadia

Liberty Investment Properties has acquired a two-facility self storage portfolio totaling 131,300 net rentable square feet in Raleigh and Durham, N.C. Two separate investors sold the assets for $18.1 million, according to public records. Berkadia facilitated an $11.8 million acquisition loan from Skymar Capital Corp. The five-year note has a fixed interest rate and represents 65 percent of the purchase price.

The new owner will rebrand the properties under its My Neighborhood Storage Center platform. Both facilities have an on-site manager, indoor, drive-up access and climate-controlled units.

Located on 5 acres at 6401 Town Center Drive, the Raleigh property was completed in 2016. A private investor sold the asset for $7.8 million, public records show. The 72,600-net-rentable-square-foot, two-story building encompasses 685 units. The site is close to the 1.2 million-square-foot Triangle Town Center, U.S. Highway 1 and Interstate 540.

The Durham asset is a 58,700-net-rentable-square-foot, four-story facility located at 112 W. Seminary Ave. and completed in 2017. NitNeil Partners sold the property for $10.3 million, according to Durham County records. The building has 645 units and is situated in the city center.

The brokerage team assisting the borrower included Managing Directors Michael Weinberg, Rebecca Van Reken and Saul Hoppenstein.

Last year, Liberty Investment Properties broke ground on a 108,900-square-foot facility in Orlando, Fla. Turner Construction served as the general contractor for the three-story property, which provides 750 climate-controlled units.

The post Raleigh-Durham Storage Assets Trade for $18M appeared first on Commercial Property Executive.

Woodlake 501. Image courtesy of Duke Realty Corp.

Duke Realty Corp. has landed a new tenant at one of its industrial buildings in Morrisville, N.C. Digital graphics producer Circle Graphics has signed a lease for the entirety of Woodlake 501, the logistics REIT’s 153,990-square-foot warehouse.

READ ALSO: Coronavirus Saps Enthusiasm for Spec Warehouse Development

Located at 501 Innovation Ave., the distribution facility was built with tilt-up concrete construction and offers 28-foot clear heights, eight dock-high doors, 260 parking spaces, and ESFR sprinkler systems. Woodlake 501 also includes a two-story office and a glass storefront that runs across the front of the building. The warehouse is one of seven Class A buildings in Woodlake Center, Duke Realty’s 812,000-square-foot master-planned distribution park. The industrial properties in Woodlake Center range from 48,000 square feet to 175,951 square feet and include tenants like Spectrum and Snyder’s of Hanover.

Battista Orcino, Duke Realty’s vice president of leasing and development, said in prepared remarks that Circle Graphics will be replacing another full-building tenant whose lease is expiring soon, allowing the property to maintain a 100 percent occupancy rate.

David Halter, executive vice president of operations for Circle Graphics, said Woodlake 501 fit all the criteria of having convenient highway access and functional space for its operations. The property is roughly a mile away from both Interstates 40 and 540 and near the Raleigh-Durham International Airport and the metro’s Research Triangle neighborhood.

Colliers International’s Lee Holder and Chris Wiley represented Circle Graphics, while Cushman & Wakefield’s Larry Lakins, Hunter Willard and Andrew Young marketed the property.

Meeting industrial demand

In North Carolina, Duke Realty is also constructing a 165,921-square-foot bulk warehouse, with an expected delivery in July, as the eighth property in its Greenfield North Business Park. The project also includes a 10.87-acre site that allows for the construction of a 136,454-square-foot building. In the Raleigh metro area, the REIT owns and manages more than 3.2 million square feet of industrial properties.

Throughout the country, Duke Realty has more than 156 million square feet of industrial assets in 20 U.S. markets. In Pennsylvania, the company has nearly completed Central Logistics Park 100, a 615,600-square-foot build-to-suit project for a wholesale tire distributor in Lehigh Valley.

The post Duke Realty Inks Full-Building Lease in Raleigh appeared first on Commercial Property Executive.

Image courtesy of Discover Durham

GRAIL Inc. has decided to establish its first production facility outside the Golden State in Durham, N.C. The Menlo Park, Calif.-based health-care company, which is pioneering a test that will detect more than 50 cancers in a single blood draw, will open the approximately $100 million laboratory facility in Research Triangle Park.

READ ALSO: Coronavirus Underscores Demand for Life Sciences Space

GRAIL relied on Newmark Knight Frank’s Global Strategy team in its nationwide quest for the most suitable city and site to accommodate its scalable commercial laboratory. “This location in North Carolina was selected for its large pool of skilled and passionate science and engineering talent, logistical efficiencies for shipping samples and materials and great commercial property options,” Robert Hess, vice chairman with Newmark Knight Frank, told Commercial Property Executive. Hess and Global Strategy colleagues Alan Reeves, Joe Gioino and Ramya Sannananjegowda advised GRAIL on the site selection.

In addition to a commercial laboratory focused on sample processing, GRAIL’s state-of-the-art facility will feature office and warehouse space. Neither GRAIL nor NKF has divulged additional details about the project, but according to a WRAL TechWire article, the building will encompass 200,000 square feet. NKF’s brokerage team of Jay Phillips, Wayne Kumagai, Ben Stern and Doug Brock spearheaded the real estate transaction on GRAIL’s behalf.

Life sciences in RTP

The life sciences market is booming and GRAIL’s site choice will put the company in the middle of it all, as RTP is the largest research park in North America, boasting 10 million square feet of life sciences inventory at the beginning of 2020, according to a report by Cushman & Wakefield. RTP started off the year with a vacancy rate of 10.7 percent, leaving large users with little opportunity to land cutting-edge space. “The supply of new lab space has been stagnant over the last 10 years, but the outlook remains positive due to rapidly increasing demand and market conditions tightening,” according to the Cushman & Wakefield report.

Notable RTP leases over the last 12 months include LabCorp’s lease of 111,000 square feet at Parmer Innovation Centers’ Parmer RTP campus. However, some tenants with major needs are building their own space. Earlier this quarter, Eli Lilly announced it had selected RTP over sites in Indiana and Pennsylvania for its $474 million integrated life science manufacturing facility. GRAIL plans to take occupancy of its new facility in the first quarter of 2021.

The post GRAIL to Open $100M Lab in Research Triangle Park appeared first on Commercial Property Executive.

Croasdaile Commons

Welltower has sold the 67,644-square-foot Croasdaile Commons in Durham, N.C., for $33 million, Yardi Matrix information shows. The new owner of the medical office building is a partnership between Kayne Anderson Capital Advisors and MB Real Estate, according to public records. Capital One provided a five-year acquisition loan, which matures in 2025. The property last traded in 2014, when Glenwood Development Co. sold it for $27 million.

The asset is located on a 5-acre site at 1821 Hillandale Road, just north of Interstate 85. The 2002-built property is less than 2 miles north of Duke University Hospital and within 5 miles of downtown Durham. Duke Health is the largest tenant. The property has a parking ratio of 4 spaces per 1,000 square feet, and shopping and dining options are nearby in an adjacent retail building.

At the end of last year, Welltower signed an agreement with Hammes Partners to acquire 1.5 million square feet of medical office buildings. In four separate deals, the REIT agreed to purchase outpatient medical facilities totaling 2 million square feet. 

The post Welltower Sells Durham MOB for $33M appeared first on Commercial Property Executive.

The Creamery. Image courtesy of Turnbridge Equities

Despite the effects of the shelter-in-place directive issued on March 30, commercial real estate activity in Raleigh-Durham did not grind to a halt in April. Several office deals closed, and Pacific Retail Capital Partners landed a 1.3 million-square-foot management contract—even as retail continues to be one of the hardest-hit sectors nationwide. Here is our April selection of Raleigh-Durham must-reads:

1. DEAL – Northpond Partners sells mixed-use asset for $34.7 million.

Turnbridge acquired The Creamery, an 82,000-square-foot property which includes office, retail and residential space. ACORE Capital provided a $19.5 million acquisition loan, public records show. Originally built in 1920 as a dairy plant, the property was converted into a commercial building in the late 1990s. The new owner intends to invest $1 million into capital improvements, with plans to replace the roof, improve the HVAC system and restore the building façade. 

2. MANAGEMENT – Pacific Retail to manage 1.3 million-square-foot retail property.

The firm will additionally partner with The Malley Co. to handle leasing for Crabtree Valley Mall in Raleigh. Located at 4325 Glenwood Ave., the property opened its doors in 1972. Macy’s and Belk serve as anchor tenants. The mall is home to a number of national retailers including H&M, Apple Store, Forever 21 and North Face.

3. DEAL – TPG pays $60 million for four Durham office buildings.

Starwood Property Trust closed the $24.1 million sale of TBC Place I & II, two office properties totaling 177,000 square feet in Triangle Business Center. Additionally, Alidade Capital sold Buildings 2A & 2B in the same area for $36 million, according to Yardi Matrix. Located at 4020, 4021 and 4025 Stirrup Creek Drive, the portfolio’s buildings opened in 1983, 1999 and 2000. 

4. DEAL – Duke Health asset sells for $5.7 million.

A private investor acquired the 14,915-square-foot medical office building from Urban Investment Research Corp. Wells Fargo provided the buyer with a $3 million financing package, according to public records. CBRE assisted the seller, and Trinity Partners represented the buyer. Built in 2003 and renovated in 2018, the property is located at 3004 Tower Blvd. in Durham. Duke University Health System Inc. occupies the facility under a 15-year, triple-net lease.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – April 2020 appeared first on Commercial Property Executive.

201 S. Rogers Lane. Image courtesy of Gladstone

Gladstone Commercial Corp. has signed a lease renewal with tenant Elster Solutions, a subsidiary of Honeywell International Inc., for a 58,926-square-foot office building in Raleigh, N.C. Elster Solutions, a provider of gas, electricity and water meters, will continue to fully occupy the property at 208 S. Rogers Lane. 

Alongside the office deal, Gladstone and Elster agreed to a 22,198-square-foot lease extension at an adjacent manufacturing facility. The property is located at 201 S. Roger Lane, and its remaining space is leased to another tenant through 2027.

Gladstone paid $5.8 million for the office building in 2003, according to Yardi Matrix, and acquired the manufacturing facility in 2007. Elster has been a long-term tenant at both properties: The firm has occupied the office structure since its completion in 1997.

In March, Gladstone acquired a newly built distribution center for more than $30 million in Crandall, Ga. The 504,000-square-foot property is fully occupied by GE Appliances.

The post Gladstone Inks Full-Building Raleigh Lease Renewal appeared first on Commercial Property Executive.

Crabtree Valley Mall. Aerial image via Google Street View

Pacific Retail Capital Partners has added a 1.3 million-square-foot Raleigh shopping center to its management portfolio. The firm is also slated to handle leasing at Crabtree Valley Mall and has tapped The Maley Co. to help with the effort.

Delivered in 1972, Crabtree is anchored by Macy’s and Belk. The property hosts a roster of diverse tenants such as H&M, North Face, Apple Store, Arhaus and Forever 21, among others. Dining options at the mall include Kanki Japanese House of Steaks & Sushi, P.F. Chang’s China Bistro, The Cheesecake Factory, Panera Bread and Chick-Fil-A.

Located at 4325 Glenwood Ave., the two-story mall is just off Interstate 440. The property is within 6 miles of downtown Raleigh and serves the residents of the Laurel Hills, Glen Forest and Crabtree Valley submarkets.

Pacific Retail Capital is managing more than $2 billion in retail assets, across the country. In June 2019, the company started handling operations at a 300,000-square-foot shopping center in Chicago.

The post Pacific Retail to Manage North Raleigh Mall appeared first on Commercial Property Executive.

3826 Generosity Court. Image via Google Maps

CBRE|Raleigh has closed the disposition of a 9,000-square-foot flex/industrial property in Garner, N.C. Senior Associate Jimmy Poole assisted the seller, Roofers Supply of Greenville. The building traded for $1.2 million in a sale-leaseback, off-market transaction.

According to public records, the buyer was Right Choice Realty of NC. The new owner financed the deal with a $992,000 mortgage provided by Fidelity Bank. The acquisition was part of a 1031 exchange. 

Located on a 1-acre parcel at 3826 Generosity Court, the single-story facility was completed in 2009. The seller occupies the building on a 12-year triple-net lease. The property is close to Interstate 40 and some 6 miles southeast of downtown Raleigh. Other facilities in the industrial corridor include an Amazon distribution center and a Pepsi Bottling Ventures plant.

Earlier this month, CBRE|Raleigh brokered the $5.7 million sale of a 14,915-square-foot medical office building in Durham, N.C. The company represented Urban Investment Research Corp. in the deal.

The post CBRE Spearheads Raleigh-Area Industrial Sale appeared first on Commercial Property Executive.

3004 Tower Blvd. Image courtesy of CBRE|Raleigh

An affiliate of Urban Investment Research Corp. has completed the sale of the Duke Health Medical Office Building in Durham, N.C. A private investor purchased the single-tenant property for $5.7 million. According to public records, the asset last changed hands in September 2014 for $2.3 million.

Located at 3004 Tower Blvd., the 14,915-square-foot building is fully leased to Duke University Health System Inc. The company occupies the facility on a 15-year triple-net lease and uses the space for its Duke Primary Care Pickett Road clinic. According to the Durham City-County Inspections Department, the property underwent a $2.9 million improvement program in 2018.

The building is some 4 miles southwest of downtown Durham, near Highway 15-501. Several restaurants and shops are within walking distance, including South Square Shopping Center. Duke University Hospital is roughly 4 miles north.

Joe Graham of CBRE|Raleigh represented the seller, while Mark Alviano of Trinity Partners assisted the buyer in the deal. Last January, a CBRE|Raleigh Capital Markets team facilitated the disposition of another Duke University-leased asset in Durham. 

The post Duke Health MOB Changes Hands in Durham appeared first on Commercial Property Executive.

The Creamery. Image courtesy of Turnbridge Equities

Turnbridge Equities has acquired The Creamery, an 82,000-square-foot mixed-use property in downtown Raleigh that includes office, retail and residential space. Northpond Partners sold the asset for $34.7 million.

READ ALSO: Raleigh-Durham Commercial Real Estate Wrap-Up – March 2020

Located at 400-410 Glenwood Ave., The Creamery was originally built in the 1920s as a dairy plant for the Pine State Creamery. The property was later renovated into commercial use and now includes 48,000 square feet of retail and commercial space, 24,000 square feet of Class A office space, 10 loft apartments and a 10,000-square-foot parking lot at 501 NW St. that contains 34 spaces on top of the property’s 151 parking spaces. The Creamery is fully leased to tenants that include Sullivan’s Steakhouse, Milk Bar, RE/MAX and Precision Hawk.

Turnbridge told Commercial Property Executive that the company is planning an approximately $1 million renovation of mostly deferred maintenance tasks including roof replacement, facade restoration, storefront improvements, HVAC upgrades and signing and branding enhancements. Turnbridge also told CPE that it will be looking at future upgrades including streetscape and outdoor dining improvements. Turnbridge will also be looking for a better use of the 2 acres of surface parking lots, the company told CPE.

Jason Davis, Turnbridge’s managing director, said in prepared remarks that The Creamery would benefit from the region’s new developments in the pipeline that would bring more residents and visitors. He added in his prepared statement that downtown Raleigh’s attention is shifting northwest toward the area where The Creamery is located.

JLL’s Christopher Peck, Roger Edwards and the New York and Raleigh teams arranged a $19.5 million mortgage loan that was provided by ACORE Capital. Mikels and Jones Properties’ Reid Jones and Bert Nowell brokered the transaction for Turnbridge Equities, while Friedlander Misler’s Deborah Astrove represented Turnbridge in the acquisition and Baker Hostetler’s Gina Mavica represented Turnbridge in the financing. Mikels and Jones have also been The Creamery’s managers for 21 years and will continue to manage the property.

Acquiring adaptive reuse

No stranger to adaptive reuse properties, Turnbridge and its institutional investment partners have acquired a former brewery that was turned into a 1.1 million-square-foot industrial complex. The Newark, N.J., property was sold by RAR Development Associates for $61 million in February.

In Raleigh, The Creamery acquisition marks Turnbridge’s second investment in the city’s Research Triangle area. The company also purchased an 87-acre shopping mall known as the Cary Towne Center Mall in Cary, N.C. In December 2019, Turnbridge rezoned the asset into a mixed-use property , while also completing a follow-on acquisition of the mall’s Dillard’s department store.

The post Turnbridge Equities Pays $35M for Raleigh Mixed-Use Asset appeared first on Commercial Property Executive.

Keystone Centennial Portfolio. Image courtesy of JLL

In the first part of March, the Raleigh-Durham metro’s commercial real estate was active, particularly in the office sector as several portfolio deals closed. The market slowed down significantly in the second half of the month, however, as concerns over the novel coronavirus resulted in fewer completed transactions and minimal development work. Following a March 27 order from the North Carolina governor for residents to stay at home, activity is likely to fall even further going into April. Here is Commercial Property Executive’s list of March must-knows for Raleigh-Durham:

1. DEAL – Crown Realty sells Durham office and R&D portfolio.

Alidade Capital purchased Bradford Center and Berrington Center, two buildings totaling 224,779 square feet, for $40.9 million. JLL represented the seller and procured the buyer. Located at 5827 and 5927 S. Miami Blvd., the one-story structures are part of Durham’s Imperial Center, a 450-acre business park with office, retail, industrial and flex space.

2. LEASING – Envestnet to move to downtown Raleigh project.

Heritage Properties’ Tower Two at Bloc[83] is an office development underway at 621 Hillsborough St. in the Glenwood South district. Once completed, it will include a 126-key hotel, an urban courtyard, a fitness center and more than 1,400 parking spaces. Envestnet will occupy three floors within the 10-story building.

3. DEAL – Ventas acquires two mixed-use buildings for $80 million.

JLL represented Keystone Corp. in the disposition of The Center for Technology & Innovation and the Keystone Science Center, two properties totaling 175,400 square feet. The fully leased assets are located at 1010 Main Campus Drive and 1791 Varsity Drive within North Carolina State University’s Centennial Campus in Raleigh.

4. DEAL – TriGate Capital enters Research Triangle in portfolio deal.

The real estate investment manager purchased the office buildings, totaling 273,554 square feet, from Continental Capital Partners. The transaction included Lake Plaza East at 900 Ridgefield Drive, Centerview III at 5565 Centerview Drive, Brook Forest at 1616 Millbrook Road and Trinity Corporate Park at 1500 Sunday Drive. TriGate plans to renovate the first two assets.

5. DEAL – Suburban retail center trades for $15 million.

Fairway Investments acquired Saltbox Village in Cary from an affiliate of Principal Financial Group. According to county records cited by Triangle Business Journal, the asset last traded in 2002 for $8.5 million. Located on 5 acres at 1241 Kildaire Farm Road, the shopping center is within a busy retail corridor 10 miles west of downtown Raleigh.

6. PEOPLE – Avison Young hires three principals.

Kathy Gigac, Baxter Walker and Thomas Kenna joined the brokerage firm’s Raleigh-Durham office with a combined 45 years of experience in tenant representation and enterprise solutions. All three previously worked with a diverse mix of office and industrial tenants on behalf of Colliers International.

The post Raleigh-Durham Commercial Real Estate Wrap-Up – March 2020 appeared first on Commercial Property Executive.

Construction activity is concentrated in North Carolina’s two largest cities: Charlotte and Raleigh. According to Yardi Matrix, more than 9.5 million square feet of office space was under construction in the state as of February, with the majority of the underway properties already preleased. The bulk of the upcoming assets are expected to come online in 2021 and will serve as corporate headquarters for major companies including LendingTree, Ally Financial and Duke Energy, to name a few.

10. Raleigh Crossing

301 Hillsborough St. Rendering courtesy of The Fallon Company

The Fallon Co. broke ground on the 292,500-square-foot project in September 2019. Situated at 301 Hillsborough St. in the heart of downtown Raleigh, N.C., the 20-story building represents the first phase of Raleigh Crossing, a mixed-use development named for its location at the junction of four city districts. The office building is expected to be completed in December 2021.

At full build-out, the Duda|Paine Architects-designed development will encompass retail space, a 165-room hotel as well as 135 apartments. Software firm Pendo has already signed a four-story lease at 301 Hillsborough St., planning to move its corporate headquarters from the nearby Wells Fargo Capitol Center.

9. Vantage South End – West Tower

Vantage South End – West Tower. Rendering courtesy of The Spectrum Cos.

In July 2019, a joint venture between Invesco Real Estate and Spectrum Group broke ground on Vantage South End – West Tower, a 295,600-square-foot office development in Charlotte’s Midtown–South End. Bank of America provided a $178.4 million construction loan.

Scheduled for completion in the first quarter of 2021, the building will serve as LendingTree’s new headquarters. The upcoming West Tower is located at 1100 S. Tryon St. and is part of a 635,000-square-foot, $300 million mixed-use development, which will also include another office tower, a boutique hotel and an urban park.

8. Honeywell Tower

Another office building taking shape in Charlotte is Lincoln Harris’ Honeywell Tower. Construction of the 304,250-square-foot, 23-story tower started in October 2019, with completion anticipated in March 2021. The asset is located at 700 S. Mint St. and is part of the 10-acre, mixed-use Legacy Union development. Additionally, the tower will serve as Honeywell’s newest corporate headquarters, expected to house 750 employees over the next five years.

7. 2151 Hawkins

Portman Holdings is currently working on 2151 Hawkins, a 323,000-square-foot office building in Charlotte’s emerging Midtown–South End submarket. Developed on a former brownfield site, the 16-story property is expected to come online in March 2021, with Gensler leading the project design. The property will include a food hall and will house the award-winning Sycamore Brewery. The site provides frontage on the Lynx Blue Line and Charlotte Rail Trail.

6. Ballantyne Corporate Park – 13146 Ballantyne Corporate Place

The largest office project under construction outside of Charlotte’s urban core is 13146 Ballantyne Corporate Place, a 328,000-square-foot asset developed by Northwood Investors. Construction on the 11-story property started in May 2019, with completion scheduled for March 2021. Wells Fargo provided $121 million in construction funding.

The building is part of Ballantyne Corporate Park, a 2,000-acre community,  which includes more than 4 million square feet of office space and 1,000 residential units as well as a hotel, located in the Highway 51 submarket. The campus is also home to 35 Fortune 500 companies, including Brighthouse Financial, Wells Fargo, Premier, Synchrony, TIAA, Lincoln Financial Group, Spectrum and Siemens.

5. Advance Auto Parts Tower

Slated for delivery by September 2020, the second Raleigh, N.C., property on the list is Advance Auto Parts Tower, located in the city’s North Hills area. Kane Realty Corp.’s 336,834-square-foot asset will spread across 20 stories, with Bank OZK facilitating construction with an $84.7 million loan. Advance Auto Parts will anchor the building, taking up 85 percent of the total space. The other tenant in place is IAT Insurance Group.

4. Legacy Union – 650 South Tryon

650 S. Tryon St. Rendering courtesy of Lincoln Harris

The 370,240-square-foot building represents the second phase of the Legacy Union project in downtown Charlotte, on the former site of The Charlotte Observer. Lincoln Harris broke ground on the 18-story project in December 2018, with completion scheduled for December 2020. U.S. Bank financed the construction with an $88.2 million loan. Deloitte will be the anchor tenant, leasing 90,000 square feet.

3. Design Center Tower

Design Center Tower. Rendering courtesy of Lowe’s

The fourth building on our list, expected to come online in March 2021, is Ram Realty Advisors’ and Childress Klein’s Design Center Tower in Charlotte’s Midtown–South End submarket. The joint venture began work on the $153-million project in October 2019. Upon completion, the asset will add 378,502 square feet of premier space to the market’s total inventory.

The 23-story property is rising at 100 W. Worthington Ave. and it will serve as Lowe’s global tech hub. The home improvement giant will move more than 2,000 technology professionals in the building by late 2021.

2. Ally Charlotte Center

Ally Charlotte Center. Image courtesy of Crescent Communities

Also in Charlotte’s CBD, Crescent Communities is currently developing Ally Charlotte Center, a 743,600-square-foot premier office asset at 601 S. Tryon St. The developer broke ground on the 26-story building in March 2018, with completion scheduled for March 2021. Regions Bank provided $167.8 million in construction financing.

Ally Financial leased 400,000 square feet in the building and will consolidate its Charlotte employees there upon completion. The site will also feature the first JW Marriott in North Carolina.

1. Charlotte Metro Tower

North Carolina’s largest office property underway is Childress Klein’s Charlotte Metro Tower in Queen City. Construction of the 1,025,000-square-foot building started in July 2019. Upon completion in March 2022, the project will include seven stories of retail space and seven levels of parking. It will also be the third-tallest office building in Charlotte.

The 40-story development will house Duke Energy’s future corporate offices. Located at 509 S. Tryon St., Charlotte Metro Tower is across from the company’s current headquarters in Uptown Charlotte. The new location comes on the heels of Duke’s plan to reduce its office space in the area by 25 percent.

Yardi Matrix covers office properties of 50,000+ square feet in markets across the United States. This ranking reflects developments underway within that sample group.

The post Top 10 Office Projects Under Construction in North Carolina appeared first on Commercial Property Executive.

Lake Plaza East. Image courtesy of JLL

After recently joining forces with Campanelli to acquire a Boston office portfolio, TriGate Capital has entered the Research Triangle market. The real estate investment manager purchased four office buildings in suburban Raleigh, N.C., totaling 273,554 square feet. According to Yardi Matrix data, Continental Capital Partners sold all the assets after seven years of ownership. The deal included:

• the 66,271-square-foot Lake Plaza East at 900 Ridgefield Drive
• the 73,503-square-foot Centerview III at 5565 Centerview Drive
• the 72,533-square-foot Brook Forest at 1616 Millbrook Road
• the 61,227-square-foot Trinity Corporate Park at 1500 Sunday Drive

The new owner of the Class A assets intends to bring significant improvements to the first two office buildings, which were built in 1985 and 1999, respectively. Plans call for the renovation of the lobbies and common areas and the addition of a fitness center, conference center and tenant lounge. According to Yardi Matrix data, tenants at Lake Plaza East include Whiting-Turner, BtB Marketing, Frazier Home Design and Sysomos, while Edward Jones and Teradata occupy space at Centerview. The firm plans to upgrade both properties by the fall of 2020.

JLL Vice President Patti Autry and Managing Director Dennis Hurley will lead the marketing efforts on behalf of TriGate Capital. Currently, there are 30,000 square feet of contiguous space available for lease at Lake Plaza East and another 20,000 square feet at Centerview III.

The post TriGate Capital Enters Research Triangle Office Market appeared first on Commercial Property Executive.

Keystone Centennial Portfolio. Image courtesy of JLL

The Center for Technology & Innovation and the Keystone Science Center, two mixed-use office properties totaling 175,400 square feet on the Centennial Campus of North Carolina State University in Raleigh, N.C., have recently come under new ownership. Acting on behalf of Keystone Corp., JLL Capital Markets arranged the sale of the 100 percent leased buildings to entities of Ventas Inc., according to Wake County property records.

READ ALSO: Raleigh-Durham Office Report – Fall 2019

Keystone developed CTI and KSC in 2016 and 2010, respectively, as part of a public-private partnership with NCSU State. The state-of-the-art buildings, also known as the Keystone Centennial Portfolio, boast a strong roster of creditworthy tenants in the science, technology, engineering and mathematics (STEM) sector. “With 96 percent of tenants falling under the STEM umbrella, the tenant roster is a microcosm of the flourishing technology and innovation taking place in the broader Raleigh-Durham market,” JLL noted in its offering memo.

Located at 1010 Main Campus Drive, CTI encompasses 105,000 square feet of space, including 60,000 square feet of office/lab accommodations and 45,000 square feet of industrial manufacturing space leased to engineered fabrics research entity The Nonwovens Institute. KSC, carrying the address of 1791 Varsity Drive, encompasses roughly 70,400 square feet of office and R&D lab space.

Raleigh on the radar

Ryan Clutter, Scot Humphrey, Chris Lingerfelt and Zack Drozda of JLL’s Capital Markets team marketed the Keystone portfolio to an eager investment community drawn to the robust fundamentals of the Raleigh-area office market. According to a new Raleigh economy report by Wells Fargo Securities’ Economics Group, the office market enjoys a vacancy rate of 5.3 percent, and despite solid construction activity, rents are rising 5.2 percent year-over-year. Clutter noted in a prepared statement that investors are especially keen on public-private partnerships between office building owners and universities, particularly those with STEM curriculums, as they offer a high tenant retention possibility and outsized returns as compared to traditional office buildings. The Raleigh- Durham-Chapel Hill MSA, ranks as the fifth most STEM-intensive labor market in the country, according to the Wells Fargo report.

The list of notable STEM-related office transactions in metropolitan Raleigh-Durham over the last several months includes Longfellow Strategic Value Fund LLC’s acquisition of a 1.3 million-square-foot, STEM-tenanted life sciences office portfolio from Bain Capital Real Estate in a $405 million transaction. And Starwood Capital Group, Trinity Capital Advisors and Vanderbilt Partners’ joined forces on the acquisition of the 645,000-square-foot Park Point at Research Triangle Park, which the partners plan to reposition via a $100 million transformation designed to appeal to the STEM sector.

The post Ventas Buys Raleigh Mixed-Use Assets for $80M appeared first on Commercial Property Executive.

Bradford Center

Crown Realty & Development has sold Bradford Center and Berrington Center, two office and R&D buildings totaling 224,779 square feet in Durham, N.C. Alidade Capital paid $40.9 million for the fully leased assets in an off-market transaction. JLL represented the seller and procured the buyer in the deal. Yardi Matrix data shows the portfolio last traded in 2016 for $46 million.

Developed in 1999 on a 30-acre site at 5827 and 5927 S. Miami Blvd., the one-story buildings are part of Durham’s Imperial Center, a 450-acre business park encompassing office, retail, industrial and flex space, as well as restaurants, hotels and medical centers. The 121,833-square-foot Bradford Center and 102,896-square-foot Berrington Center feature laboratories and office areas.

The portfolio is 10 miles south of city center near the Triangle Expressway, with Raleigh-Durham International Airport roughly 4 miles east. The buildings are also east of the southern side of Research Triangle Park.

Crown COO Kreg Groat, Vice President Ann Vera and Senior Asset Manager Nikkie Marion led the negotiations on behalf of the seller, with the assistance of JLL’s Ryan Clutter, Scot Humphrey, Chris Norvell and Valerie Derrick. Clutter, Humphrey and Norvell were also instrumental in the $405 million sale of a 1.3 million-square-foot life science portfolio located in and near Research Triangle Park. 

The post Crown Realty Sells Durham Life Sciences Portfolio appeared first on Commercial Property Executive.

GlenLake Seven. Image courtesy of Highwoods Properties

Highwoods Properties has signed a long-term lease with Martin Marietta to be the sole tenant at GlenLake Seven, a Class A, 125,000-square-foot office building underway in Raleigh, N.C. The aggregates and heavy building materials supplier will relocate its corporate headquarters from 2710 Wycliff Road, approximately 1.5 miles south of the new address.

GlenLake Seven will be the fifth component of GlenLake Office Park, the development planned for up to seven buildings totaling 875,000 square feet. The developer started construction on the project in the first quarter of 2019, having Rule Joy Trammell + Rubio as architect and Shelco as general contractor. Delivery is expected in the first quarter of 2021.

Situated on a 6-acre parcel at 4143 Parklake Ave., the five-story development features floorplates of 23,000 and 26,000 square feet, as well as structured parking for more than 700 cars. Designed to achieve LEED certification, the building will have an electric vehicle charging station. Amenities will include a fitness center, conference center, café and activated outdoor spaces.

The property is 6.5 miles northwest of downtown Raleigh, where tech company Pendo inked a similar-size lease in June. Located near Glenwood Avenue and Interstate 40, the office building is 1 mile from Crabtree Valley Mall and there are more than 10 hotels within a 2-mile radius.

The post Highwoods Properties Brings 125 KSF Tenant to Raleigh Office Park appeared first on Commercial Property Executive.

Regional Commerce Center. Rendering courtesy of Cushman & Wakefield

Trucking company North State Express has signed a 157,000-square-foot lease at Regional Commerce Center in Durham, N.C. Cushman & Wakefield assisted the tenant, while Foundry Commercial represented Scannell Properties, the owner and developer.

Scannell plans to complete the 1.2 million-square-foot facility in May. The development is the site of a former, 46-building tobacco drying facility that shut down in 2005.

Shortly following delivery, North State will relocate from its current location at 2910 Weck Drive, also in Durham.

Located at 708 Ellis Road, Regional Commerce Center is alongside Highway 147, 4 miles from downtown Durham. Raleigh-Durham International Airport is within 11 miles of the industrial property.

Jim Allaire of Foundry Commercial assisted the owner in the deal. Cushman & Wakefield’s team included Vice President Hunter Willard, Senior Director Larry Lakins and Associate Andrew Young. In October, the three also landed a leasing assignment for a 2.9 million-square-foot industrial portfolio in the Triangle area on behalf of Duke Realty.

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