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Nov. 30, 2012

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