Virginia Beach Investor Acquires West Raleigh Office Building for $8.3M

by Adriana Pop, Associate Editor

Continental Capital Management of Virginia Beach, Va. has recently purchased a three-story, 61,412-square-foot office building in West Raleigh. According to the Triangle Business Journal, shopping mall operator CBL & Associates Properties sold the asset for $8.3 million.

At the time of sale, the building at 1500 Sunday Drive within Trinity Corporate Park was 97 percent leased. Its tenants include the Hughes, Pittman & Gupton accounting firm, First Point Management Resources and RCI. The property was developed in 2000 and has a tax value of $9.2 million.

Scott Adams, Ben Kilgore and Brian Carr of CBRE-Raleigh brokered the transaction on behalf of the seller. The firm will also manage the building and handle leasing services, the newspaper reports.

West Raleigh is one of the best performing office submarkets in the region. According to a recent report released by CBRE, the area’s office vacancy rate during last year’s fourth quarter was 11.7 percent, one of the lowest in the Triangle.

In multifamily development news, White Oak Properties of Raleigh is planning to restart a long-stalled residential project at N.C. State University’s Centennial Campus on Capability Drive. The NewsObserver reports that the developer’s proposal for the first phase of construction includes up to 111 townhouses and condominiums that would add to the 33 already-completed homes.

If approved by both the city and the university, the project could break ground during this year’s third quarter. The initial phase of the new community will cover about half of the 15-acre site located on the banks of Lake Raleigh.

In 2001, a partnership between Craig M. Davis and Comstock Homes planned to build 358 townhouses and condominiums at the site. The project eventually fell through and about a year ago, the university selected White Oak to restart development. The company’s owner, Roland Gammon, told the newspaper that this time, construction will be segmented in smaller phases.

Photo credits: http://www.loopnet.com

Oaktree-NFR Partnership Acquires 450K SF Wells Fargo Operations Center in Raleigh

by Adriana Pop, Associate Editor

An affiliate of Oaktree Capital Management L.P., in partnership with National Financial Realty Inc. (NFR) of Los Angeles, has recently purchased the 450,000-square-foot Wells Fargo office park in west Raleigh, the Triangle Business Journal reports. Located at 1100 Corporate Center Drive, the three-building property has a tax value of $64 million.

The sale was part of an approximately $240 million transaction through which the partnership has acquired 40 office buildings across the country from First States Investors B, L.P. The 3.4 million-square-foot office portfolio is 90 percent leased on a long-term basis to Wells Fargo Bank.

“This off-market acquisition, principally backed by 11 years of Wells Fargo credit, at a 50 percent discount to replacement cost, is another example of Oaktree’s commitment to relationship-based transactions with well-positioned strategic operating partners like NFR, in addition to lenders and borrowers in need of capital solutions,” said John Brady, managing director and head of global real estate for Oaktree.

The Wells Fargo portfolio purchase establishes NFR as the largest privately-held investment concern focused on the acquisition and operation of properties leased to regulated financial institutions.

In multi-family transaction news, Hawthorne Residential Partners of Greensboro has partnered with Midway Investors L.L.C. of New York to acquire the Dunhill Trace apartment community in Raleigh.

According to the Triangle Business Journal, Hawthorne-Midway Dunhill L.L.C. has purchased the 250-unit property from a subsidiary of Prudential Real Estate Investors of Atlanta. The acquisition price was $23.1 million, county records show.

Dunhill Trace is located near the intersection of Glenwood Avenue and Pinecrest Road. Prudential acquired the community immediately after its opening in 1995.

Hawthorne Residential Partners manages 15 apartment properties In the Triad, including three in Raleigh: the Pine Winds Apartments, Lynnwood Park and Calibre Chase. In Durham, the company manages the Hawthorne at the View community, as well as and the Spring Ridge Apartments.

Photo credits: Justin Sullivan/Getty Images

Hotel, Retail Development Breaks Ground on 6.4-Acre Rezoned Site Near Interstate 40

by Adriana Pop, Associate Editor

A joint venture between MJM Group and Griffin Stafford of Charlotte is currently developing a new hotel and retail center in Durham.

According to the NewsObserver, plans call for a 105-room hotel, as well as 30,000 square feet of retail, restaurant and medical office space. The developers have spent several years rezoning the site of the project, a 6.4-acre property on Chapel Hill Boulevard near Interstate 40.

Called Gateway Terrace, the new development will house a Home2 Suites extended stay hotel, a Mattress Firm outlet, as well as three restaurants: PDQ, Chipotle and Bruegger’s. The cost of the project is between $20 million to $25 million.

Anuj Mittal, who runs MJM along with his wife Vinita, told the newspaper that he expects to complete construction on the retail portion by the end of the year. The new hotel will be completed by next year’s first quarter.

The Gateway Terrace is MJM’s third and largest hotel-driven project in recent years, the newspaper reports. The company’s other developments include a Courtyard by Marriott hotel in Raleigh (pictured) and a $17 million hotel and retail project currently under construction in Charlotte.

In regional news, a Wilmington-based real estate investor group has purchased the HHGregg, Inc. building at 1401 Piney Plains Rd. in Cary.

The Triangle Business Journal reports that Meeting Street HHG LLC has acquired the 29,000-square-foot property from DDR Corp. of Beachwood, Ohio for nearly $3.7 million. The store, which will continue to house home appliances and electronics retailer HHGregg, was purchased with a 25 percent discount to its $4.95 million tax value.

Capital Pacific represented DDR in the sale, while Drew Logan with The Shopping Center Group commercial real estate firm in Raleigh represented the buyer.

DDR still owns a multitude of retail properties in the Triangle, including the Alexander Place Promenade shopping center in Raleigh, Beaver Creek Crossings in Apex and Meadowmont Village in Chapel Hill.

Photo credits: http://www.marriott.com/

Raleigh’s Smoke-Free Apartment Communities in High Demand

by Adriana Pop, Associate Editor

Residents at the new Water Garden Village community in northwest Raleigh can breathe easy on the entire 11-acre property. According to WRAL, the recently opened 100 percent smoke-free apartment complex has been successful, leasing within nearly a month of opening.

Located at 8441 Mount Valley Lane, the 60-unit community has been developed by nonprofit DHIC. The newspaper reports that the property’s non-smoking policy extends beyond apartment walls and includes the fitness center, the clubhouse, the playground and even the laundry facilities.

“We were concerned that it might even limit our ability to rent the apartments,” DHIC President Gregg Warren said with regard to the smoking restriction.

The popularity of such communities marks the beginning of the smoke-free rental housing trend, experts say. Clearly, the smoke-free living option takes healthy housing one step further, bringing tranquility to residents trying to avoid second-hand smoke. On the other hand, the benefits for landlords involve significant savings in clean-up costs of vacant units.

The Water Garden Village is among the first smoke-free apartment complexes in the Triangle. A similar community called the Wilmont, which opened two years ago, is also in high demand. Still under construction, the property is located in north Raleigh on Hillsborough Street.

In other news, M/I Homes Inc. is currently building new residences in 15 Triangle communities, including Raleigh, Cary, Durham and Holly Springs. The Triangle Business Journal reports that the developer has recently added three projects to its regional portfolio: Briar Chapel in Chapel Hill, Traditions at Heritage in Wake Forest, and Wilder’s Woods at Flower’s Plantation in Clayton.

The company is building single-family homes, as well as townhomes, with prices ranging from about $150,000 to $600,000. With the disposition of 317 residences, M/I Homes’ Raleigh division registered its best sales year in the Triangle throughout 2012. The office opened in 1988 and is led by Ed Kristensen.

Photo credits: www.apartmenthomeliving.com

Centennial Acquires Multi-Family Complex from JP Morgan Affiliate for $39M

by Adriana Pop, Associate Editor

Atlanta-based Centennial Holding Company LLC recently purchased the 270-unit Addington Farms apartment community in Durham, which it renamed Century Trinity Estates. The Triangle Business Journal reports that an affiliate of J.P. Morgan Investment Management Inc. of New York sold the property for $38.6 million.

Located at 240 Ivy Meadow Lane, just minutes away from Duke University and UNC Chapel Hill, the 33-acre pet-friendly community offers luxurious one-, two- and three-bedroom garden-style apartments, as well as townhomes and cottages. Amenities include a resort-style swimming pool with complimentary poolside Wi-Fi, a fitness center, media center, as well as a lighted tennis court and a picnic and grilling area.

The property’s new owners plan to upgrade the homes with granite counter-tops, wood flooring and improved appliances. First Communities Management of Atlanta will manage the complex.

Centennial Holding’s similar properties in the Triangle region include the 280-unit Century Creek apartments in south Durham, the 266-unit Century Carrington Park apartments in Morrisville and the 170-unit Century Centerview apartments in Raleigh. The company was co-founded by Augusta National Golf Chairman Billy Payne.

In other news, the six-story Genworth Financial office building on Six Forks Road in north Raleigh is for sale. According to the Triangle Business Journal, CBRE-Raleigh is currently marketing the five-acre property. The 129,347-square-foot structure is fully occupied by Genworth Mortgage Insurance Corp., a subsidiary of Genworth Financial, Inc. of Richmond, Va. The lease extends through December of 2019.

The facility was developed in 2009 by Dominion Realty Partners and its partners, Helvetica Flagship of Charlotte and Newcastle Properties, as a build-to-suit for Genworth. In 2010, it became the first building in Wake County to receive LEED Gold certification from the U.S. Green Building Council and the Green Building Certification Institute, for both core and shell. MSTDS Architects of Atlanta and Piedmont Land Design of Raleigh were the project’s designers.

Photo credits: http://century-apartments.com/century-trinity-estates

Brookfield Acquires Apartment Communities in the Triangle for $108M

by Adriana Pop, Associate Editor

Brookfield Asset Management Inc. has purchased five multi-family properties in the Triangle region, as part of a $414 million deal to acquire a total of 19 apartment communities in North Carolina, South Carolina and Virginia. Babcock & Brown Residential, the seller of the 4,892-unit portfolio was advised by Robert W. Baird & Co.

According to the Triangle Business Journal, the assets located in the Triangle accounted for a combined $108 million, or $76,900 per unit.

The newspaper reports that the 462-unit Oak Hollow property in Cary sold for $32.6 million, while the 144-unit Bridges at Chapel Hill in Carrboro sold for $11.6 million. The region’s other three communities that were included in the sale are located in Durham: the 346-unit Bridges at Wind River (pictured), which sold for $32.6 million, the 264-unit Woods Edge, which sold for $18.7 million, and the 192-unit Bridges at South Point, which sold for $12.76 million.

Overall, Brookfield’s newly acquired portfolio has an average occupancy rate of 92 percent. The assets are currently financed with individual non-recourse first mortgage loans which have been assumed as part of the deal. The company intends to invest another $30 million in the selective upgrading and repositioning of the communities.

“The acquisition of this attractive portfolio adds to Brookfield’s significant multi-family platform and positions us for continued growth in this property sector,” said David Arthur, managing partner at Brookfield Asset Management.

With its latest additions, Brookfield’s multifamily portfolio has grown to approximately 20,000 units throughout the United States. Fairfield Residential, an affiliate of the multibillion-dollar asset management company, will take over management of the properties from Gingko Residential of Charlotte.

Photo credits: www.bridgesatwindriver-apts.com

KBS Realty Acquires Iconic Building in Suburban Raleigh for $98.4M

by Adriana Pop, Associate Editor

On Jan. 31, a joint venture partnership between Indianapolis-based real estate investment trust Duke Realty Corp. and Raleigh-based real estate development firm Kane Realty Corp. sold the 17-story Captrust Tower in the city’s North Hills area. KBS Realty Advisors of Newport Beach, Calif. acquired the approximately 300,000-square-foot property for $98.4 million, or nearly $326 per square foot.

Developed in 2009, the LEED Gold-certified high-rise at 4208 Six Forks Road offers 275,630 square feet of office space, 26,813 square feet of retail space and a six-level parking deck. The property is 95 percent leased to 18 companies, including Captrust Financial Advisors, the American Board of Anesthesiology, CBRE, Regus, RBC Capital Markets and other national and regional tenants.

“Captrust Tower is the best project in Raleigh and has leased faster and at higher rents than any other office project,” said Charles Schreiber, CEO of KBS Realty Advisors.  “We’ve been focused on Raleigh and specifically Captrust Tower due to the quality master-plan and the maturity of the mix of uses already in-place and planned.”

According to the Triangle Business Journal, the tower’s advertised lease rate for office space is $31.95 a foot per year, the highest rental rate of any non-medical office property in Wake County.

Kane Realty will continue to have an ownership interest in the project through the 4208 Six Forks Road LLC joint-venture formed with KBS. Kane will also be in charge with the building’s leasing and management activities.

The sale of the Captrust Tower is part of Duke’s strategy of divesting suburban office assets, while increasing its industrial and medical office portfolio. The company’s long-term goal is to have 60 percent of its holdings in industrial, 25 percent in office and 15 percent in medical office properties.

In the Triangle region, KBS owns three other buildings totaling nearly 250,000 square feet of space in the Crescent Green office park in Cary, as well as the 127,000-square-foot Colonnade One office building on Six Forks Road in North Raleigh.

Photo credits: FoxDon via Wikimedia Commons

Grubb Properties to Develop 203-Unit Link-Branded Apartment Complex in Raleigh

by Adriana Pop, Associate Editor

Grubb Properties is planning a 203-unit luxury apartment complex in Raleigh’s Glenwood South district. According to the NewsObserver, the project will be developed on half a block bordered by Jones, West and Harrington streets.

“We think it’s one of the best sites, certainly in the Triangle market, and one of the top sites that we’re working on in the entire Southeast,” Todd Williams, Grubb’s senior vice president of investments, told the newspaper.

The new complex will feature 162 one-bedroom units and 41 two-bedroom units. The apartments will be developed under the company’s Link brand, which targets younger renters who prefer to live in urban areas that offer easy access to jobs, entertainment and cultural amenities. Grubb recently opened its first Link property in Richmond, Va. (pictured).

Construction on the Glenwood South project is expected to start by this year’s third quarter. Grubb intends to purchase the site from a group of developers who in 2008 proposed building a hotel and an office tower.

In North Raleigh, Grubb Properties co-owns the Sterling Forest apartments on Six Forks Road and is currently developing a 339-unit apartment project called Sterling Town Center.

Overall demand for apartments in the Triangle has been high recently, with rents increasing 4 percent between September 2011 and September 2012. New construction is also significant, data from Karnes Research and the Triangle Apartment Association shows. There are currently 1,200 units in the pipeline in the downtown Raleigh area alone. In the Glenwood South district, several projects are slated to open this spring.

Photo credits: www.apartmenthomeliving.com

$55M Mixed-Use Development in Downtown Chapel Hill Nears Completion

by Adriana Pop, Associate Editor

One of Chapel Hill’s largest mixed-use projects, 140 West Franklin will be complete by late April. Located at the intersection of West Franklin and Church streets, the venture is expected to boost economic activity and bring new markets to town.

According to The Daily Tar Heel, the $55 million downtown complex will offer 140 condominiums, 26,000 square feet of retail space, a public plaza and 337 parking spaces. Developed by Ram Realty Services, the structure stands eight stories tall at its highest point.

“The goal was definitely to develop Franklin Street — this is some of the first Class A retail space available on Franklin Street in a long time,” development manager Jon Keener told the newspaper.

While most of the retail space has already been leased, 140 West’s residential units have also been popular. So far, 99 of the total available condominiums have been sold. The size of the homes ranges from one-bedroom units to two-story terrace residences, with prices ranging from $325,000 to $1,525,000.

In other news, The Nature Conservancy will move its regional and state headquarters to Durham’s American Tobacco Campus by the end of the month. The Triangle Business Journal reports that the nonprofit organization will relocate its 40 to 50 employees and volunteers from the One University Place building in south Durham to 13,000 square feet of downtown space in the Strickland Building.

“For us, moving to American Tobacco made perfect sense and opened up lots of opportunities to be both more sustainable and make a bigger impact on our community,” said Katherine Skinner, executive director of The Nature Conservancy’s North Carolina Chapter.

The American Tobacco campus is owned and operated by Capitol Broadcasting Company Inc. The organization also owns the Diamond View office buildings in Durham.

Photo credits: www.ramrealestate.com             

Hampton Hotel Opens 11th, 136-Room, Property in Raleigh

by Adriana Pop, Associate Editor

Global hospitality brand Hampton Hotels announced the opening of the Hampton Inn & Suites Raleigh/Crabtree Valley. Located at 3920 Arrow Drive, on the site of the former Crabtree Inn building, the 136-room hotel is the 11th Hampton property in Raleigh.

Amenities include a business center, meeting space, a fitness center, 24-hour suite shop, an indoor heated swimming pool with outdoor sun deck, high-speed Internet and complimentary shuttle service to local businesses and Crabtree Valley Mall.

According to the Triangle Business Journal, Winwood Hospitality Group of Morrisville is the owner and operator of the property. In the first quarter of 2014, the company will also open a 160-room Hilton Garden Inn hotel next to the Hampton Inn & Suites Raleigh/Crabtree Valley property.

In December, the new Hampton Inn & Suites Raleigh Downtown opened at 600 Glenwood Avenue. The 126-room property is owned by Stewart Hotel Associates LLC and operated by Prime Investments LLC.

In regional news, Highwoods Properties, Inc. has announced the acquisition of two Class A office buildings in the Green Valley submarket of Greensboro. The 195,000 square feet portfolio commanded a combined sales price of $32.8 million, including $2 million for the near-term improvement of the buildings.

At an occupancy rate of 95.5 percent, the properties are expected to generate full-year 2013 net operating income of $3.1 million. About $0.2 million of expensed acquisition costs will be recorded in the first quarter.

Ed Fritsch, president and CEO of Highwoods, stated: “These buildings are two of Greensboro’s top office properties. They have been on our wish list for some time and are immediately accretive to FFO.”

Photo credits: www.worldinteriordesignnetwork.com

New York Opportunity Fund Closes on $5.2M Acquisition of Long-Vacant Downtown Building

by Adriana Pop, Associate Editor

In a $5.2 million deal, real estate investor Howard Lavitt and his partners at LRC Opportunity Fund of New York have acquired a long vacant, 11-story, office building in downtown Raleigh. The Triangle Business Journal reports that the transaction closed on Dec. 21. Ben Kilgore with CBRE in Raleigh represented the sellers, New York businessmen Morton Rosenfeld and Milton Schwartz.

Located at 227 Fayetteville Street, the 100,000-square-foot property has been empty since its former tenant, Wachovia Bank, moved out in 2003. Wachovia developed the building in 1964, after signing a 50-year ground lease with the owners of the lot. The contract expired in January 2011, and the ownership of the structure was transferred to the land owners’ heirs.

Plans now call for the interior renovation of the building, which should be complete by the fourth quarter of 2013. Project manager Steve Weitnauer with Solutions PDM is in charge of the demolition and reconstruction, while Davidson and Jones Construction Co. are the general contractor.

In regional multifamily news, Elco Landmark Residential of Tampa, Fla., and Canada-based Timbercreek Asset Management are the new owners of a 264-unit apartment complex in Chapel Hill. According to the Triangle Business Journal, Birmingham, Ala.-based Colonial Properties Trust sold the Colonial Village at Highland Hills for $17.75 million.

The acquisition was part of a $95.4 million transaction that included another three apartment communities in North Carolina, Texas and Virginia. The Elco/Timbercreek partnership has also purchased the 476-unit Heatherwood Apartment Homes in Charlotte, the 229-unit Colonial Village at Canyon Hills in Austin, Texas and the 425-unit Autumn Hill Apartments in Charlottesville, Va. The entire portfolio formerly owned by Colonial Properties amounts to 1,380 apartments and is 95 percent occupied.

Photo credits: Steve Wilson via www.bizjournals.com

Glenwood Hospitality Debuts $15M New Hampton Inn and Suites Hotel in Raleigh

by Adriana Pop, Associate Editor

The new Hampton Inn & Suites Raleigh Downtown is officially open.  Located at 600 Glenwood Avenue, the boutique-style property offers 126 guestrooms.

According to the Triangle Business Journal, it is the first hotel to open in the city’s downtown area since the Raleigh Marriott City Center launched on Fayetteville Street in 2008. The property is also the first lodging construction project in the Glenwood South district.

Glenwood Hospitality Associates LLC has developed the $15 million six-story building. Amenities include free hot breakfast, a 24-hour business center, a modern fitness center, and an indoor heated pool. Guestrooms are equipped with free high-speed internet access, lap desk and HDTV. The hotel also features 1,000 square feet of retail space, a 970-square-foot meeting room and a patio with a fire pit.

“Hampton combines quality, innovation, comfort and plenty of value-added extras, making it the brand of choice in the marketplace today,” said Tony Gomez, general manager of the Hampton Inn & Suites Raleigh/Downtown.

Hampton Inn & Suites Raleigh Downtown is owned by Stewart Hotel Associates LLC and operated by Prime Investments LLC. The new hotel is the tenth Hampton property in Raleigh, while five more are slated to open in North Carolina.

In regional news, Weinstein Properties of Glen Allen, Va. has acquired the 288-unit Alexan Panther Creek apartment complex in Cary. The Triangle Business Journal reports that Trammell Crow Residential of Dallas sold the upscale property for $33.5 million.

Developed in 2008, Alexan Panther Creek is the seventh multifamily acquisition for Weinstein Properties in the Raleigh region. The investor now plans to re-brand its new property as Bexley Panther Creek. The company owns and operates six other Bexley-branded luxury apartment communities in Raleigh, Cary, Morrisville and Wake Forest. Since 2004, Weinstein has invested more than $232.1 million in the purchase of its Triangle apartment complexes for an average of $103,900 per unit.

Photo credits: hamptoninn3.hilton.com

Bayer to Construct $2.65M North American Bee Care Center

by Adriana Pop, Associate Editor

Bayer CropScience has announced plans for the development of a North American Bee Care Center at the company’s headquarters in Research Triangle Park. The estimated cost of the project is $2.65 million, the Herald Sun reports.

Construction on the 6,600-square-foot LEED Gold-certified facility is expected to begin in February. Upon completion in July 2013, the center will serve as a gathering place between researchers, bee experts, students, visitors and leading Bayer scientists.

“We understand the necessity for healthy bees as pollinators and their critical role to agriculture, and by working with scientists, growers, beekeepers and customers, we strive to create new approaches and solutions to benefit bee health and the global food supply,” said Jim Blome, president and CEO of Bayer CropScience North America.

Bayer’s new North American Bee Care Center will generate more energy than consumed through its geothermal heating and cooling, LED lighting and solar water heating. The facility is the company’s second establishment dedicated to the preservation and promotion of bee health. In 2012, the global Bayer Bee Care Center opened at the joint headquarters campus of Bayer CropScience and Bayer Animal Healthin Monheim in Germany.

In other news, Capital Senior Housing of Washington, D.C. has purchased two luxury-style senior apartment communities from Bell Partners Inc. According to the Triangle Business Journal, the Alta Oakridge property in north Raleigh sold for $24.25 million, while the Alta Walk property in Durham sold for $23.25 million.

With the sale of its last two senior housing complexes, Bell Partners Inc. now plans to refocus its growth on the multifamily residential market. The company owns or operates 242 apartment properties with more than 69,000 apartment units. In the U.S., Bell is among the 10 largest apartment operators. The company also ranks as the second largest apartment management firm in the Triangle region.

Photo credits: www.bayercropscience.us

City of Raleigh Approves Dorothea Dix Lease Agreement to Create Urban Park

by Adriana Pop, Associate Editor

The Raleigh City Council’s lease of the Dorothea Dix Hospital campus will enable the city to move forward with its plan to reconvert the 325-acre property into an urban park.

The city council has agreed to lease the Dorothea Dix Hospital campus from the State of North Carolina for up to 99 years. The lease agreement will be executed by the end of the year.

“The plan is the most appropriate way of preserving this open space as a park, while at the same time providing revenue to the state,” Gov. Bev Perdue said in a news release.

Under the terms of the agreement, the city will pay the state a rate of $500,000 annually, plus a 1.5 percent yearly increase over the length of the lease term. Furthermore, the state Department of Health & Human Services will be allowed to maintain its offices on the Dix campus for up to 15 years.

Supporters of the Dix Park idea have already announced a fundraising effort for the project. Called the “Dix Visionaries”, the group has pledged $3 million in private donations to support the creation of a master plan for the park.

In other news, Slate Properties of Toronto has acquired the Fuquay Crossing shopping center in Fuquay-Varina for $13.1 million. According to the Triangle Business Journal, the company purchased the Kroger-anchored retail center from Jacksonville, Fla.-based Regency Centers Corp.

Located at the intersection of Sunset Lake Road and Broad Street, the 14.5-acre property offers approximately 124,770 square feet of retail space available for lease. The newspaper reports that during this year’s third quarter, the center was 92 percent occupied.

Besides the Kroger grocery store, the property’s other tenants include O2 Fitness, Dollar Tree, After Hours Pub, Assaggio’s Restaurant, AT&T Wireless, Blockbuster Video, Cato, Crazy Glaze, GNC, Hallmark, King Wok and The UPS Store. The sale did not include a number of outparcels owned by retailers like Golden Corral, Smithfield’s Chicken ‘N Bar-B-Q and Bank of America.

Photo credits: twbuckner via flickr.com

New York Opportunity Fund to Spend $17M on Acquisition, Rehab of Vacant Downtown Building

by Adriana Pop, Associate Editor

LRC Opportunity Fund of New York plans to purchase and renovate the vacant 10-story office building at 227 Fayetteville in Raleigh. According to the NewsObserver, the company expects to close on the sale by the end of the year.

“Our plans are to do a total renovation,” Edward Kulik, a co-founder of LRC, told the newspaper.

The investor intends to renovate the building’s façade while retaining some of the 1960s materials. Plans also call for a retail portion on the ground floor.

The building has been on the market since a 50-year lease agreement between a branch of Wachovia bank and the owners of the land expired on Jan. 31, 2011. LRC expects to spend around $17 million on the acquisition and renovation of the property.

Founded three years ago by Kulik and Howard Lavitt, LRC acquires all types of properties. The old Wachovia property is the company’s second acquisition in the Triangle. Earlier this year, LRC paid $5.2 million for the 51,500-square-foot Brier Creek Medical Pavilion that Wells Fargo had foreclosed on.

In other news, the Triangle Business Journal reports that on Nov. 29 biotechnology firm Biogen Idec will celebrate the opening of the 190,000-square-foot Bio26 administration building in the Research Triangle Park.

The event will include tours of the facility, as well as remarks from Scangos and RTP campus General Manager Machelle Sanders. Gov. Beverly Perdue will also attend the ceremony, the newspaper reports.

Developed to achieve LEED Gold certification, the five-story building will allow Biogen Idec to return its patient services unit to the RTP campus and expand its manufacturing capabilities and laboratory space.

The Cary office of Goldsboro-based RN Rouse was in charge of construction management, while O’Brien/Atkins of Durham designed the project.

Photo credits: Steve Wilson via www.bizjournals.com

Pergo Distribution Center in Garner Sells for $8M

by Adriana Pop, Associate Editor

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 Community

by Adriana Pop, Associate Editor

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 Community

by Adriana Pop, Associate Editor

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 Carolina

by Adriana Pop, Associate Editor

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 Express

by Adriana Pop, Associate Editor

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