Pergo Distribution Center in Garner Sells for $8M27 Nov 2012, 5:13 pm
Exeter Property Group has acquired the Pergo distribution center in the Greenfield business park in Garner for $8 million. According to the Triangle Business Journal, the property was sold by four family trust groups working through First American Exchange Co., an intermediary for 1031 tax-deferred real estate exchanges.
CBRE Raleigh’s J.D. “Butch” Miller, managing director and Ann-Stewart Patterson, senior associate, represented First American in the transaction.
The distribution center was built in 2002 and offers 175,230 square feet of warehouse space coupled with 4,770 square-feet of office space on a nearly 11-acre lot. It is fully leased to Pergo, a widely known laminate flooring manufacturer. In May 2012, CBRE renewed the Pergo lease on behalf of the landlord.
“The renewal stabilized the asset and created an opportunity to take the asset to market for disposition,” Miller stated in a news release.
In regional news, Lennar Corp. is planning up to 379 houses and townhomes on the north side of the WakeMed Soccer Park in Cary. The plan is one of the area’s largest proposed developments and includes 14 acres of commercial space.
Cary News reports that the project would be developed on about 97 acres of land situated west of the Cary-Raleigh border, on the Chatham Street-Hillsborough Street corridor. The homes would sit at the corner of Cary Towne Boulevard and Trinity Road, between the soccer stadium and the Cary Towne Center shopping mall.
The property is now in the process of being rezoned for high-density mixed-use development. If the plan is approved by the Cary Town Council, the developer intends to purchase the project site from the state for approximately $15 million.
Photo credits: CBRE Raleigh
Hines to Begin Work on 7,000-Acre Research Triangle Park Master Planned Community15 Nov 2012, 10:24 pm
The Research Triangle Foundation has formally unveiled its new master plan for the future growth of the 7,000-acre Research Triangle Park (RTP). It is the first update to the master plan since the park was created in 1959. The foundation has also announced it has selected the Houston real estate company Hines to work on the initial phase of the project.
The Herald Sun reports that RTP leaders have envisioned three development clusters in three main areas of the park.
Called “Triangle Commons,” the first area to be developed will bring a 7 million gross square feet mixed-use center to the Durham County end of RTP. It will include office space, shops and restaurants, residential space, a conference center and hotel, as well as program space for local universities. Plans for the residential component call for up to 1,400 multifamily units, which will be located in walking distance of the development’s center. A commuter rail station has also been proposed within the first cluster. Over the coming months, Hines plans to identify development partners and line up financing for the project.
The second proposal envisions the redevelopment of the aging Park Center buildings, totaling approximately 970,000 square feet. Currently, the area includes a hotel, a school and mostly vacant retail and office space. Under the new plan, the Park Center could host as much as 2 million gross square feet of office and research space.
The third cluster has been planned for the Wake County portion of the park. Called Kit Creek Center, the area surrounding Kit Creek Lakes aims to create a critical mass of research businesses.
“We’re looking to make the park more attractive for a new generation of innovators and entrepreneurs,” said Bob Geolas, president and CEO of the Research Triangle Park Foundation. “They want physical density, but they also want a density of ideas.”
Under the new master plan, the park’s capacity for employment could more than triple to around 150,000 employees. Furthermore, capacity for research and office building space could grow from a current 26 million square feet to more than 84 million square feet.
RTP is currently home to more than 170 companies employing around 39,000 workers and operating from about 22 million square feet of research and office space.
Photo credits: www.rtp.org
Two Apartment Projects Totaling 500 Units to Break Ground in Residential Community7 Nov 2012, 10:55 pm
In the coming months, two projects are expected to break ground at the Heritage residential community in Wake Forest. According to the NewsObserver, the new developments will bring more than 500 units to Heritage.
Atlanta-based TWO Capital Partners will develop Capital Creek, a 315-unit apartment complex. The project will be built on a 26-acre site next to Heritage Middle School. The company expects to purchase the land in February and open the property by next fall.
The second development is a 260-unit apartment complex called Heritage Gardens. Greensboro-based Certus Properties will build the project on a 17-acre parcel of land. The company recently purchased the property for $1.74 million and expects to open the new complex late next year.
“There are great schools and entertainment options nearby, convenient access to employers throughout the Triangle, and to put it simply, a very high overall quality of life in Wake Forest,” Certus principal Brantley White told the newspaper.
Northeast Wake County is one of the best performing apartment markets in the Triangle. Data from Karnes Research and the Triangle Apartment Association shows that the area registered a vacancy rate of 4.9 percent in September, down from 7.6 percent a year ago. Over the same period, rent growth was 4.6 percent, the highest in the Triangle region.
The 228-unit Bexley at Heritage (pictured) is currently the only apartment complex at the Heritage residential community. As of September, the apartments were 98 percent leased.
The area’s leasing activity is also benefiting from the high number of homes being developed and sold in Heritage. According to Triangle Multiple Listing Services, Heritage registered 98 closings in the third quarter. Many buyers arrive early and need short-term leases until their new homes are complete.
Photo credits: www.apartmentguide.com
Walmart Takes Steps to Open Another Express Store In North Carolina31 Oct 2012, 9:13 pm
Wal-Mart plans to open a Walmart Express store in Rolesville. The NewsObserver reports that the retailer is using North Carolina as a primary test market for its smaller store concept.
Wal-Mart is now in the process of acquiring a parcel of land at the corner of Rogers Road and Grand Rock Way. The company will then need to apply for a land reclassification and obtain a special-use permit for its new project. According to Thomas Lloyd, Rolesville’s planning director, the retailer is expected to submit more detailed architectural drawings within next week.
Walmart Express stores are generally less than one-tenth the size of the company’s typical retail centers, which can be 200,000 square feet or larger. The smaller stores employ between 20 and 25 people and offer a good variety of products at the same prices. The company has opened 10 Express stores so far, half of which are located in North Carolina.
In other news, Hampton Hotels has announced the official opening of its fourth property in Greensboro, the 109-room Hampton Inn & Suites Greensboro/Coliseum Area.
Located at 3033 High Point Road, the hotel is owned and operated by CN Hotels Inc. Amenities include a free hot breakfast, a 24-hour business center and versatile meeting space for special events. Guests will also have access to a modern fitness center and an indoor saline pool.
The hotel is situated within walking distance of a number of popular attractions, such as the Four Seasons Mall, International Civil Rights Museum and Emerald Pointe Water Park. The property is also nearby NC A&T University, the University of North Carolina at Greensboro, the Koury Convention Center, Greensboro Coliseum and Greensboro Aquatic Center.
Hampton Hotels also announced it plans to open another seven properties in North Carolina, while more than 250 hotels are planned in the U.S.
Photo credits: www.gatewayurp.com
BB&T Takes Over Lease of 390,000-Sq.-Ft. Building Formerly Occupied by American Express24 Oct 2012, 8:23 pm
BB&T Corp. of Winston-Salem has signed a seven-year agreement to lease the former American Express call center building in Greensboro. The company plans to add 1,700 jobs to the region over the next five years.
Located west of Piedmont Triad International Airport, the 390,000-square-foot structure will eventually house up to 2,500 employees working primarily in back office, administrative and support functions. Between 50 and 100 workers will move into the bank’s Triad Corporate Center by December.
BB&T neither sought nor was offered any economic development incentives as part of the transaction. According to Chris Henson, the bank’s chief operating officer, the expansion was prompted by the company’s internal growth.
“The new BB&T Triad Corporate Center allows us to consolidate offices, many of which are nearing capacity, in a central location and provide space for future expansion,” Henson said. “The central location of this facility to Winston-Salem, Greensboro and High Point make it an excellent site for our existing and future associates and underscores our commitment to the Triad.”
The Winston-Salem Journal reports that the facility became available in late 2011, when American Express closed its call center. The company laid off about 1,500 of its 1,900 employees, marking the largest commuter job cut in Triad history.
In other news, county commissioners have approved a $1.2 million incentive package for the conversion of Durham’s old Mutual Community Savings Bank building into a boutique hotel.
The $11 million project will be developed by Gentian Group LLC. The renovation plans for the late-1960s property include 54 rooms, a restaurant and hotel lobby on the ground floor and a bar on the rooftop. The new development is expected to generate 100 construction jobs and around 89 permanent jobs. According to Durham Herald-Sun, the rooms offered by the future Holland Hotel will also benefit business at the nearby Durham Convention Center.
Photo credits: www.winstonsalemopen.com
PRG Real Estate Acquires 216-unit Apartment Community in Durham18 Oct 2012, 6:58 pm
PRG Real Estate has announced the acquisition of Bainbridge in the Park Apartments, a 216-unit garden-style apartment community located on a 25-acre wooded setting in Durham.
The community was built in 1985 and is situated within 2.5 miles from the world-renowned Research Triangle Park. Amenities include a 24/7 newly renovated fitness center and clubhouse, a resort-style pool, bark park, private patios, balconies, fireplaces and washer/dryer connections. PRG Real Estate is planning upgrades for its new property, including the complete renovation of kitchens and baths. Landscaping and other curb appeal items will also be improved.
“Bainbridge in the Park is a key acquisition for us,” says Sam Foster, CEO of PRG Real Estate. “Adding the property to our expansive portfolio further solidifies PRG’s presence in the Raleigh Durham market and marks a resumption of our long-term growth strategy in key markets. Through interior renovations and professional hands-on management, we expect to add significant value to the asset.”
Founded in 1985 by Steven Berger and Jon Goodman, PRG Real Estate is a leading multifamily real estate investment and management firm. The company has acquired over 50 communities and 13,000 apartment units in Pennsylvania, Ohio, Virginia, North and South Carolina, Tennessee, Kentucky and Florida.
In other news, Northwestern Mutual has sold the Palladian Corporate Center in Durham for $36.2 million. New York-based Clarion Partners has acquired the class A office park on behalf of BBH Real Estate Income Fund II.
The center includes two four-story buildings that were developed in 2005 and 2007. Known as Palladian I and Palladian II, the facilities offer a total of 209,720 square feet. The Triangle Business Journal reports that Palladian I is fully leased to the American Institute of Certified Public Accountants, while Palladian II is 62 percent occupied.
According to Marc DeLuca, managing director at Clarion Partners, Raleigh and the surrounding area continues to outpace much of the rest of the state and nation in job gains, driven by the healthcare, professional services and biotech industries. “We anticipate that this growth will continue to support demand for high-quality office space like that of Palladian I and Palladian II,” DeLuca said.
Photo credits: www.bainbridgeinthepark.com
Capital Associates to Build $30M Employee Housing on Centennial Campus in Raleigh11 Oct 2012, 10:48 pm
Cary-based Capital Associates is expected to break ground on The Greens at Centennial Campus, a 292-unit rental project in Southwest Raleigh to house campus employees. According to the NewsObserver, the $30 million complex would include three apartment buildings spread over 10 acres.
At the moment, the only residential development at the 1,125-acre campus includes 33 for-sale townhouses. The university is also constructing a $129 million apartment-style student housing complex, which will offer 1,195 beds.
Capital Associates, however, will not be targeting students as tenants. Instead, it hopes to attract public- and private-sector employees who work on campus. Expected to open a year from today, the new community will offer a green environment and more affordable rents than the new apartment complexes currently being built in Glenwood South or Cameron Village.
“We’re going to offer a very different environment,” Tom Huff, an associate partner with Capital Associates told the newspaper. “We’re surrounded by golf courses and lakes and bike trails.”
Amenities at the N.C. State University Centennial Campus include an 18-hole public golf course, bike and walking trails, as well as a fishing pier by Lake Raleigh. The university hopes to add more amenities, with the proposed construction of a $56.6 million conference center and hotel. Developer Concord Eastridge of Arlington, Va., has yet to secure financing for the project.
In other news, the Sheraton Raleigh Hotel at 421 South Salisbury Street in downtown Raleigh has been sold to a subsidiary of a fund managed by Oaktree Capital Management L.P. and affiliates of Northview Hotel Group. Financial terms of the transaction were not disclosed.
The hotel was built in 1981 and features 353 guest rooms, a 4,600-square-foot restaurant and 18,000 square feet of meeting space. The Triangle Business Journal reports that the seller, Genwood Raleigh LLC, a subsidiary of Gencom Group of Miami, purchased the property in 2006 for $22 million.
The sale marks Northview’s second acquisition in the last four months. In May, the company acquired the Sanderling Resort & Spa, a picturesque oceanfront resort in Duck, North Carolina.
Photo credits: www.lonniepoolegolfcourse.com
Sentinel to Build Durham’s First Mega-Scale, Multi-Tenant Data Center4 Oct 2012, 10:59 pm
Sentinel Data Centers of Massachusetts has announced it would build a 420,000-square-foot facility in Durham, the region’s first purpose-built multi-tenant data center for large-footprint users. The initial phase of the Sentinel NC-1 facility will deliver 120,000 square feet by early 2013.
“We welcome Sentinel Data Centers to North Carolina as the region’s first wholesale data center provider,” said Gov. Bev Perdue. “North Carolina companies will benefit greatly from this project, and the bottom line is it will lead to job creation and investment in our state.”
The company has conducted a two-year market assessment before selecting the North Carolina location and hopes to attract in-region and out-of-region users alike. The announcement did not disclose whether Sentinel received any business incentives for its new investment in the region.
Founded in 2001, Sentinel Data Centers is a pioneer in the wholesale data center industry. It has developed over 1.4 million square feet and 120 megawatts of high-quality data centers for enterprises across multiple industries.
In related news, data center services firm DataChambers has acquired a 50,000-square-foot facility on Garner Station Boulevard in Raleigh. The Winston-Salem-based technology company paid $4.7 million for the building and eight-acre property formerly occupied by Qwest Communications. It also plans to make significant investments in infrastructure and upgrades, with completion scheduled for the beginning of 2013.
“We’ve experienced significant growth in recent years as companies have looked for ways to accomplish more with increasingly limited information technology budgets,” says Nicholas Kottyan, CEO of DataChambers. “We find we are able to offer our clients a level of service and support that would be hard for them to replicate on their own.”
The acquisition doubles the company’s footprint. DataChambers operates two other data centers in Winston-Salem, N.C. It is a wholly owned subsidiary of North State Communications of High Point since December last year and has 26 employees.
Photo credits: www.sentineldatacenters.com
Investcorp Affiliate to Acquire Durham Office Portfolio for $48.4M27 Sep 2012, 10:50 pm
American Real Estate Partners of Herndon, Va. recently sold three class A office buildings at Keystone Park in Durham for $48.4 million. According to CityBizList Charlotte Raleigh, an affiliate of Investcorp of New York purchased the 285,874-square-foot portfolio at 430 Davis Drive, 530 Davis Drive and 630 Davis Drive. Paul Collins, Bill Collins, Drew Flood, Jud Ryan, James Cassidy and David Finger in the Washington, D.C. office of Cassidy Turley represented the seller in the transaction.
Developed between 1998 and 2001, the buildings are 94 percent occupied by 23 tenants in the healthcare, research, technology and financial services industries. In 2007, American Real Estate Partners acquired the properties for $45 million.
Keystone Office Park is located in the heart of the Research Triangle region between Raleigh, Durham, Chapel Hill, and Cary and adjacent to the world-renowned Research Triangle Park.
According to a report released by CBRE Group Raleigh, the average lease rate for office product in the Triangle at the close of the second quarter was $19.16 per square foot. Average office rates had been steadily declining since the fourth quarter of 2009 with the exception of an increase during the fourth quarter of 2011.
In other news, Davis Property Group of Greenville, S.C. is planning a 243-unit apartment complex in Raleigh. The NewsObserver reports that the project, called Jones Grant Apartments, will be developed on nearly 15 acres inside the Beltline on the west side of Wake Forest Road.
Owner Russ Davis told the newspaper that this would be his company’s first project in Raleigh. It is also the area’s third apartment complex proposed within a mile-and-a-half radius. What is special about the Jones Grant Apartments project is that it will offer residents more affordable rents. The development has a reduced cost since it does not require a parking deck, Davis said. Moreover, it’s location across from the Holly Park Shopping Center and in close proximity to the Duke Raleigh Hospital will be attractive to young professionals. Construction is expected to begin during the second quarter of next year.
Photo credits: www.americanrepartners.com
Chart courtesy of: CBRE Group, Inc.
Compass Buys $2.1M Site in Durham to Develop Data Center20 Sep 2012, 7:58 am
Compass Datacenters of Texas has completed the acquisition of a 16.5-acre site in Research Triangle Park, where it plans to build one of its first data center complexes in the U.S.
According to the Triangle Business Journal, a subsidiary of the Dallas-based company has purchased the land from two seller groups for a total of $2.1 million. Compass intends to develop three 1.2 MW data centers on the site and has already received planning approval from local authorities.
Chris Curtis, senior vice president of development and acquisitions for Compass, told the newspaper that Compass’s plan is to give companies an option to manage their data systems without having to build their own facilities. Each 21,000 square feet standalone, modular wholesale data center offers 10,000 square feet of raised-floor space for servers and equipment. The building pods can either be leased or sold to local companies.
Compass also announced it has purchased a 14.6 acre parcel of land in Franklin, where it plans to build a total of five 1.2 MW data centers.
In regional news, Durham-based solar energy company Semprius Inc. will officially open its first production facility on September 26 in Henderson, N.C. The company has committed to investing $89.7 million in the new Vance County center and expects to create 256 jobs over the next five years. The project was made possible in part by state grants from the Job Development Investment Grant and One North Carolina Grant programs.
Semprius is an innovator in high concentration photovoltaic solar modules and expects to produce the world’s highest efficiency solar modules. At 33.9 percent conversion efficiency, the company’s modules are the first to convert more than one-third of the sun’s energy into electricity.
“The opening of Semprius’ solar manufacturing plant in Henderson further strengthens North Carolina’s leadership in clean technology and sustainability,” said Governor Perdue. “We congratulate Semprius on all of their successes thus far and look forward to their continued growth – and with it, new high tech jobs for the highly skilled North Carolina workforce.”
Photo credits: www.compassdatacenters.com
Sheetz to Develop $32.8M Distribution and Manufacturing Center in Burlington12 Sep 2012, 9:09 pm
Sheetz Inc. plans to establish a $32.8 million regional distribution and food manufacturing center in Burlington and create up to 254 jobs over the next six years. The Pennsylvania-based gas station and convenience store chain recently announced its decision through Gov. Bev Perdue’s office.
The approximately 250,000 square foot facility will be developed on a 44-acre site at the White Kennel Road. According to the Triangle Business Journal, Sheetz has chosen the Burlington location after considering 51 land proposals.
“Companies like Sheetz recognize that North Carolina is a great place to thrive because of our top-notch business climate, well-trained workforce, and a strong logistics network that fits the company’s needs,” Gov. Perdue commented in a statement.
The Alamance County investment was made possible, in part, by state grants worth more than $2 million from the Job Development Investment Grant (JDIG) and the One North Carolina Fund.
“The Burlington area has an exceptional highway network allowing for fast, fresh distribution of our products as well as having a skilled and highly motivated workforce,” Stan Sheetz, president and CEO, said in a press release. “These factors, and the support we received from the North Carolina Department of Commerce, Alamance County and the City of Burlington, made this location stand out from the others we considered.”
Under the terms of the JDIG, Sheetz is eligible to receive a grant equal to 60 percent of the state personal income withholding taxes derived from the creation of new jobs. The average annual payroll for the center is estimated at $7.4 million. If it meets and sustains job creation targets over the next 12 years, the company could yield as much as $1.9 million in benefits.
The Burlington distribution and production center, operating as Sheetz Distribution Services, will supply between 150 and 160 stores across North Carolina, Virginia and West Virginia. Construction is scheduled to begin in June 2013, with an opening set for December 2014.
Founded in 1952, Sheetz Inc. is a family-owned convenience store chain based in Altoona, Pa. The company operates 429 stores across six states – Pennsylvania, Maryland, Virginia, Ohio, West Virginia, and North Carolina — and employs more than 14,500 people.
Photo credits: www.hankstruckpictures.com
Health Care REIT to Acquire Sunrise Senior Living for $845M7 Sep 2012, 2:23 am
Health Care REIT, Inc. has entered into a definitive agreement to acquire all of the outstanding common stock of Sunrise Senior Living, Inc., in an all cash transaction of approximately $845 million.
The acquisition positions Health Care REIT among the largest owners of seniors housing in the world with over 58,000 units located in the U.S., Canada, and the United Kingdom.
As part of the transaction, the Toledo, Ohio-based REIT will acquire Sunrise’s 20 wholly owned seniors housing communities in the U.S. (17) and Canada (3), and Sunrise’s interest in joint ventures that own 105 seniors housing communities in the U.S. (78) and the United Kingdom (27). Most of the centers target the higher end of the market and are concentrated in New York, Los Angeles, Chicago and London.
According to the Triangle Business Journal, McLean, Va.-based Sunrise Senior Living owns and operates four senior housing and assisted-living communities in the Triangle region:
• Sunrise of Raleigh at 4801 Edwards Mill Road;
• Brighton Gardens of Raleigh at 3101 Duraleigh Road;
• Sunrise at North Hill at 615 Spring Forest Road; and
• Sunrise of Cary at 1206 West Chatham St., in Cary.
The transaction is subject to regulatory approvals by Sunrise’s shareholders, and it is expected to close in the first half of 2013.
In other news, Thalhimer Realty Partners Inc., the investment and development subsidiary of Cushman & Wakefield/Thalhimer, has acquired Rock Creek Apartments in Carrboro for approximately $11 million.
CityBizList Charlotte Raleigh reports that the 188-unit multifamily property located at 100 Rock Haven Road was purchased from 100 Rock Haven LLC, an entity controlled by QVT Mount Auburn.
Rock Creek was built in 1986 and consists of one- and two-bedroom units averaging 820 square feet. Amenities include a leasing center, a clubhouse with fitness center, swimming pool and tennis court. The community is situated in close proximity to the University of North Carolina at Chapel Hill, and its resident base consists almost entirely of graduate school students.
Cushman & Wakefield/Thalhimer will manage the property, with Regional Manager Amanda Madden overseeing operations.
Photo credits: www.thalhimer.com
Qualcomm to Expand Operations at Brier Creek6 Sep 2012, 6:38 pm
San Diego-based Qualcomm is expanding its operations at Brier Creek Corporate Center in west Raleigh with the lease of 40,672 square feet of office space. John Daly and Jason High of CBRE-Raleigh represented the company in the negotiations.
The Triangle Business Journal reports that Qualcomm had been pursuing the deal for several months and needed a bankruptcy court’s approval to finalize the lease contract.
In March, Charlotte-based developer American Asset Corp. filed for Chapter 11 bankruptcy protection for several of its affiliate companies that own buildings and land in Brier Creek, Cary and Charlotte. The Brier Creek Corporate Center buildings at 8081 Arco Corporate Drive and 8045 Arco Corporate Drive were among the properties included in the filling.
Qualcomm provides integrated wireless systems for the mobile phone industry. The company already owns a 133,000-square-foot office building in Brier Creek Corporate Center where it employs approximately 465 workers, according to the Triangle Business Journal. Qualcomm’s expansion will accommodate another 140 employees in the Brier Creek Corporate Center VI building, bringing the facility to full occupancy.
In other news, O2 Fitness Clubs owner Michael Olander Jr. has acquired a two-story office building at 135 E. Martin St. in downtown Raleigh for $2.2 million.
The Triangle Business Journal reports that Olander purchased the property through Moma Martin LLC and was represented by Ty Thomas of Lincoln Harris. The seller was Mark Enyedi with Martin Street Development Group LLC, which was represented by Lee Clyburn of the Grubb & Ellis/Thomas Linderman Graham real estate firm in Raleigh.
The 11,946 square-foot building dates back to 1910 and was renovated in 2002. It is located across from Moore Square at the corner of South Blount Street and includes RATIO Architects Inc., ENG Engineering and ENG Solutions among its tenants.
Photo credits: www.fluhrerreed.com
Dept. of Health Seeks 1M SF For-Rent Space in an Office Park23 Aug 2012, 10:58 pm
The state Department of Health & Human Services (DHHS) plans to consolidate its 60 offices in Wake County into a 1 million-square-foot office campus in the Triangle region.
According to the Triangle Business Journal, 10 real estate developer groups have responded to the request for proposals issued by the N.C. Department of Administration, which is managing the project on behalf of DHHS.
DHHS is seeking a 20-year lease agreement with five-year extension options for existing or build-to-suit facilities in the greater Raleigh area. The company favors sites in proximity to the Dorothea Dix campus, where it employs about 1,300 workers. The relocation will reduce operational costs and pave the way to the reconversion of the former Dorothea Dix psychiatric hospital into a public park.
The company’s Wake County offices currently hold 4,300 employees. DHHS plans to move 2,557 employees into the new building by 2014, while 589 employees would transition by 2017 and another 558 by 2020. Other groupings would relocate between 2015 and 2018, the newspaper reports.
In other news, the Town of Cary has issued a request for proposal from developers interested in a nearly $3 million demolition and construction project for the aging movie theater building on East Chatham Street. General contractors have until Aug. 28 to submit proposals.
Ed Gawf, Cary’s downtown development manager, told the Triangle Business Journal that the nearly 16,000-square-foot project will include the complete renovation of the 181-seat venue at 122 East Chatham St. The town acquired the 7,000 square foot property in July 2011 for $410,000. Furthermore, plans call for the development of a three-story building on the east side of the theater building that will be used for offices, dressing rooms and support space.
The project will be designed by Quinn Evans Architects Inc. of Washington, D.C. Construction is expected to begin in October or November, with completion scheduled for the summer of 2013.
Photo credits: www.quotestemple.com
Citrix Plans to Place Raleigh Headquarters in Warehouse District8 Aug 2012, 7:22 pm
Citrix Systems Inc. has made the decision to locate its new downtown Raleigh headquarters in the old Dillon Supply steel warehouse at the corner of West and Hargett streets. The NewsObserver reports that the company plans to move into its new offices by November 2013, becoming the largest corporate presence in the warehouse district and possibly a catalyst for further redevelopment.
The two-story building will provide 130,000 square feet of space, while its 50,000-square-foot roof will include a fitness center, a yoga studio, a bocce court and a restaurant with indoor and outdoor seating. Employees will also have access to a six-story parking garage which will be built on a site north of the warehouse. Approximately 550 employees will be able to fit in the new offices, though there is a possibility for future expansion.
The warehouse is currently owned by Triangle Transit, which is in the process of appraising the property. Raleigh-based private equity firm Cherokee Investment Partners and The Crown Co. from Dobson plan to purchase the entire block the structure sits on for $2 million. Once the transaction is complete, Citrix intends to sign a 15-year lease for its new building.
Citrix’s incentives package from the Job Development Investment Grant requires the company to invest $12.5 million in its new headquarters. If it meets hiring and investment requirements, Citrix will receive more than $9.2 million, as approved by the state Economic Investment Committee. The purpose of the funds is to support new and expanding businesses which would not otherwise be undertaken in North Carolina.
In October 2011, the company acquired Raleigh-based software firm ShareFile, which became Citrix System’s Data Sharing Group. Since the acquisition, the division has grown to 150 employees and is planning to add 337 more over the next five years. The company announced it would pay an annual average wage of $70,695, well above the Wake County average of $45,396.
Photo credits: raleighwarehousedistrict.com
City Council Green Lights Restarted Crabtree Village Master Plan Project12 Jul 2012, 3:46 pm
The City Council of Raleigh unanimously approved a master plan for a proposed mixed-use project located on a 24-acre portion of the Kidd’s Hill property behind Crabtree Valley Mall.
Wells Fargo Bank and developer Pappas Properties of Charlotte are planning to restart the stalled Crabtree Village master plan by proposing a maximum of 525 apartment and condo units, a 200-room hotel, up to 250,000 square feet of office space and between 15,000 and 60,000 square feet of retail space.
The NewsObserver reported that before the downturn, York Properties of Atlanta – the site’s previous owner – was planning up to 749 residential units, more than 410,000 square feet of office and retail space and a 150-room hotel. Once the recession hit, the project was canceled, and Wells Fargo took ownership of the site in 2010 following foreclosure.
Pappas Properties said it would first focus on the development of 315 apartment units in six buildings. It is estimated that the first phase of the project, requiring an investment of approximately $40 million, would be complete in about three years.
In other news, Elon University has selected the Raleigh office of Choate Construction Co. to develop the Global Neighborhood residence hall, a student housing project which has an estimated cost of around $30 million.
The development will include five residential halls totaling more than 180,000 square feet and having the capacity to accommodate 600 students, as well as a 30,000-square-foot activities facility. According to the Triangle Business Journal, the commons building will be built on the shore of Lake Mary Nell and will house the Isabella Cannon International Centre, classrooms, faculty offices, study rooms and large gathering spaces. Spillman Farmer Architects of Bethlehem, Penn. will design the project, the newspaper reports.
The Global Neighborhood project is part of Elon University’s $250 million development plans scheduled for the next decade. Construction is slated to begin later this month, with phased delivery dates in August 2013 and August 2014.
Photo credits: http://www.elon.edu
United Therapeutics Buys 3 Buildings in Research Triangle Park for $17.5M7 Jul 2012, 1:54 am
United Therapeutics Corp. has paid GlaxoSmithKline $17.5 million for the purchase of three buildings in the Research Triangle Park. The property sits on 135 acres of land adjacent to United Therapeutics’ 55-acre manufacturing facility and encompasses approximately 720,000 square feet of office and laboratory research space. The Research Triangle Park’s distinctive Elion-Hitchings building on Cornwallis Road was included in the sale.
According to Andrew Fisher, United Therapeutics’ executive vice president and chief strategy officer, the new acquisition paves the way for the company’s growth. The Maryland-based drug manufacturer has more than 100 employees at the site and expects to reach up to 350 workers.
The Triangle Business Journal reports that United Therapeutics will soon finalize construction of the $76 million, 180,000-square-foot Research Triangle Park campus expansion where it plans to manufacture, package and label a new pulmonary hypertension drug treatment called oral treprostinil. The company expects to reach $1 billion in revenues next year.
GlaxoSmithKline has almost completed the consolidation of its operations at the Moore Drive campus in the Research Triangle Park and has 107 acres available for sale at 3029 E. Cornwallis Road. Raleigh-based brokers David Finger of Cassidy Turley and Jim Allaire represented the company in the transaction, the newspaper reports.
In other news, developer Neal Coker’s Burcam Capital II LLC, owner of 510 Glenwood building in Raleigh, has filed a Chapter 11 petition to avoid foreclosure on the property’s lower floors and adjacent 450-space parking deck. The company cited both assets and liabilities within a $10 million to $50 million range.
Burcam Capital II stopped making mortgage payments in August last year and was unable to renegotiate the terms of the $13 million loan it took out in 2003. According to the NewsObserver, the company had sold the building’s residential condominiums situated on the top three floors, while retaining ownership of the approximately 50,000 square feet of office and retail space. The bankruptcy filing will have no impact the property’s commercial tenants, the company said.
Photo credits: alpolic-usa.com
Beacon, Novare Plan $60M Apartment High Rise29 Jun 2012, 3:38 pm
Local developer Gregg Sandreuter’s Beacon Partners along with Atlanta-based Novare Group are planning a 23-story luxury apartment tower in downtown Raleigh. According to the NewsObserver, the 320-unit high-rise will be situated on the southwest corner of Martin and Blount streets.
At a price tag of $60 million, SkyHouse Raleigh will include 5,400 square feet of retail, and a pool on the top floor. Residents will also have access to a 1,224-space parking deck that divides the block on which the building will be developed, the newspaper reports.
The project targets young professionals who are looking for an in-town residence. It will be the first phase of the mixed-use Edison development that Sandreuter proposed in 2007. Initial plans called for two office towers, but demand in this sector has remained low in the wake of the recession.
Demand for apartments on the other hand has been strong in the region, especially in the heart of downtown. According to MPF Research, central Raleigh’s occupancy rate was nearly 96 percent in the first quarter, with rents up 4.9 percent from the same period last year.
Contractor Batson-Cook Development hopes to break ground on the new high-rise apartment complex during the third quarter this year. SkyHouse Raleigh will be similar to SkyHouse Midtown, also 23 stories and 320 units, which Novare Group and Batson-Cook are currently building in Atlanta.
In other news, Raleigh-based Dominion Realty Partners has paid $2.4 million for the purchase of 12.5 acres of land at the southeast corner of Tryon Road and Cary Parkway. In July, the company expects to break ground on Tryon Place, a 205-unit apartment complex that will include four buildings. About 60 percent of the land will be reserved for open space, Andy Andrews, Dominion’s CEO told the NewsObserver.
According to MPF Research, Cary is one of the best performing apartment markets in the Triangle. The occupancy rate was 95.9 percent in the first quarter, 2.9 percent higher than the figures registered during the same period last year, while rents increased by 3.7 percent.
Photo credits: Novare Group
Samaritan Closes on $147M Tax-Exempt Bond to Finance Seniors Community26 Jun 2012, 6:54 pm
Nonprofit Samaritan Housing Foundation Inc. will be obtaining $147 million in tax-exempt resource bond financing to fund the construction of SearStone Senior Citizens Community in Cary.
According to CityBizList Atlanta, law firms Krevolin & Horst and Peck, Shaffer and Williams LLP arranged to secure the bonds issued by the Public Finance Authority. Bond underwriters are Herbert J. Sims & Co. and BB&T Capital Markets. The procurement includes $117 million of first mortgage bonds, and $30 million of subordinated debt. The transaction is considered to be one of the largest of its kind in the United States this year.
The senior housing project is 80 percent pre-sold and had been stalled after developer Bill Sears initiated it in 2005. SearStone will be developed on the remaining 75 acres of Bill Sears’ historic family farm and will comprise 169 independent living units, a clubhouse, a 16-acre lake, walking trails, a conservatory, and a boutique hotel and retail space. It will offer amenities for five types of living: 55-plus active adult, independent living, assisted living, a skilled nursing facility and continuing care retirement. Construction is scheduled to begin this summer and the first residents are expected to move in by 2013.
In other news, Associated Estates Realty Corp. announced that it has waived due diligence on The Park at Crossroads, a 344-unit apartment complex in Cary. Built in 2006, the property is 95 percent occupied and has an average monthly rent of about $850 per unit.
In May, the Cleveland-based REIT purchased another Cary property – The Apartments at the Arboretum – for $39.25 million. Located at the corner of Weston Parkway and Harrison Avenue, the 205-unit complex has an average monthly rent per unit of about $1,200. It opened in 2009 and is currently 92 percent occupied.
“We have had our eyes on Raleigh-Durham for some time, and these acquisitions fit well with our plan to expand into high growth submarkets,” said John Shannon, the company’s senior vice president of operations.
Photo credits: www.carymagazine.com
Citrix Seeks New Space in Downtown Raleigh to Invest $12.5M14 Jun 2012, 11:33 pm
Citrix Systems Inc. plans to expand its data-sharing division by investing at least $12.5 million in a new facility in downtown Raleigh. The company chose Raleigh over Atlanta and Austin for its expansion.
Jesse Lipson, general manager of Citrix Systems data sharing operations, told the Triangle Business Journal that the company is now seeking a facility that can offer between 80,000 and 100,000 square feet. The division is currently based in a 22,000 square feet building near Crabtree Mall on Glenwood Avenue.
According to CityBizList, the expansion project was made possible in part by state incentives from the Job Development Investment Grant. Citrix Systems will receive more than $9.2 million, as approved by the state Economic Investment Committee, if it meets hiring and investment requirements. The purpose of the funds is to support new and expanding businesses which would not otherwise be undertaken in North Carolina.
In October 2011, the company acquired Raleigh-based software firm ShareFile, which became Citrix System’s Data Sharing Group. Since the acquisition, the division has grown from 80 to 130 employees and is planning to add 337 more over the next five years. Citrix will pay an annual average wage of $70,695, well above the Wake County average of $45,396.
In other news, Driftwood Hospitality Management announced details of a $7.5 million renovation plan for the Hilton Raleigh-Durham Airport at Research Triangle Park. The company acquired the 249-room property under a joint venture with New York-based Apollo Global Management LLC for $16.5 million in April.
Slated to begin in July, the renovation will include a re-design of the lobby, meeting spaces and guest rooms, as well as the launch of a new restaurant concept. The upgrades are part of the joint venture’s major hotel expansion program that includes the Sheraton Columbus Hotel at Capitol Square and the DoubleTree Hotel in downtown Wilmington. The companies expect to finalize the renovations by the end of 2012.
Photo credits: Wikimedia Commons