Home » MHN City Pages  »  Raleigh-Durham  

WP HTTP Error: A valid URL was not provided.

Kane Realty Celebrates Construction Start on $90M Spec Office Project in Raleigh

18 Sep 2014, 9:15 pm

by Adriana Pop, Associate Editor

On Sept. 9, Kane Realty Corp. held a groundbreaking ceremony for its next major office building at North Hills in Raleigh, N.C.

According to the Triangle Business Journal, Raleigh real estate developer John Kane and his joint venture partners with KBS Realty Advisors are building the 18-story North Hills Tower Two without a signed commitment from an anchor tenant.

“We have a lot of prospects,” Kane told the newspaper. “The reality of new building really begins to sink in once they see construction starting,” he added. “That makes a big difference in this market.”

The companies are investing $90 million in the new 300,000-square-foot development, which has been designed by Duda Paine Architects of Durham. Holder Construction of Atlanta, the project’s general contractor, is aiming for silver-level LEED certification at a minimum.

Bank of the Ozarks of Little Rock, Ark. is the provider of the construction loan, while Cassidy Turley will be in charge of marketing the new space.

Rents at North Hills Tower Two will be $33.95 per square foot per year, which includes on-site, covered parking in the building’s parking deck.

Construction is scheduled to be complete by April 2016.

The new building is slated to rise at the corner of Six Forks and Dartmouth roads, next to the CAPTRUST Tower, which Kane Realty developed in partnership with Duke Realty Corp.

Construction on the CAPTRUST Tower began in 2008, with 66 percent of its space pre-leased. At the moment, the high-rise is completely occupied.

Later this year, Kane Realty Corp. is planning to break ground on a new 187-unit apartment building at the corner of Dartmouth Road and St. Albans Drive, also in the North Hills.

Called 120 Dartmouth, the project will bring the fifth apartment community in this part of Raleigh. Other such properties include the 434-unit Allister at North Hills, which was completed in February, and the 214-unit Midtown Green, which welcomed its first tenants in May. North Hills is also home to The Park & Market apartments and the Alexan North Hills upscale rental communities.

Kane Realty is also considering the possibility of building the Tower III at North Hills office building on the south side of CAPTRUST Tower and west of the Hyatt House hotel fronting Six Forks Road. The 28-story high-rise would offer 450,000 square feet of space, along with nine levels of parking and ground-floor retail.

Photo credits: Duda Paine Architects

Highwoods Properties Invests $92M in Acquisition and Renovation of Iconic Office Tower in Raleigh

11 Sep 2014, 1:19 am

by Adriana Pop, Associate Editor

In a $92.3 million deal, Highwoods Properties has acquired another landmark property in downtown Raleigh, namely the One Bank of America Plaza, a 17-story, 374,000-square-foot multi-tenant office building at 421 Fayetteville St.

The purchase price, which is approximately 25 percent below the estimated replacement cost, includes a planned $8.3 million near-term renovation of the property.

According to the Triangle Business Journal, the company purchased the building from a partnership led by The Simpson Organization of Atlanta. The investors acquired the asset in 2005 for $47.1 million.

Home to a diverse customer base in the healthcare, legal, technology and financial services industries, the tower’s occupancy rate is currently at 82.1 percent. The Triangle executive offices for Bank of America, the Stewart engineering firm and the Raleigh office for New York financial software firm Ipreo are among the property’s tenants.

Located in the heart of the city’s downtown area, One Bank of America Plaza offers easy access to venues such as the City’s Convention Center, the Red Hat Amphitheater, the Duke Energy Center for the Performing Arts and many restaurants and hotels.

“In addition, the building’s proximity to PNC Plaza, less than two blocks away, will enable us to garner operating synergies,” says Ed Fritsch, president and CEO of Highwoods.

The company’s 33-story PNC Plaza is 100 percent leased, and the city’s CBD submarket has an overall occupancy of 91.7 percent.

“Early in the evaluation process, we identified a well-defined scope of opportunities for ‘Highwoodtizing,’ and we are excited about the significant improvements we will make to enhance the property. With its prime location, meaningful occupancy upside and average in-place rents that are 10+ percent below market, this building is a solid addition to our portfolio,” added Fritsch.

Highwoods funded the acquisition of One Bank of America Plaza with proceeds from non-core dispositions, its ATM program and borrowings under its revolving credit facility, without assuming any debt in connection with the transaction.

The company’s wholly-owned Raleigh portfolio now comprises 4.4 million square feet that is 90 percent leased, with an additional 668,000 square feet under development that is 81.4 percent pre-leased.

Photo credits: Highwoods Properties

The Dilweg Companies Buys 12 Triangle Office Buildings from Beacon Partners for $89.5M

3 Sep 2014, 9:46 pm

by Adriana Pop, Associate Editor

In its largest acquisition to date, The Dilweg Companies has purchased a portfolio of 12 office buildings in the Triangle area.

According to the Triangle Business Journal, Beacon Partners of Charlotte sold the properties for a total of $89.5 million. The company was represented by Ryan Clutter, formerly with CBRE, along with Ben Kilgore of CBRE Raleigh and Patrick Gildea of CBRE Charlotte.

The buildings are located in Raleigh, Durham, Morrisville and Cary and include:

  • Park Forty Plaza at 1000 Park Forty Plaza Dr. in Durham; the property was built in 1986 and offers 122,311 square feet of space;
  • RDU Center II at 2121 RDU Center Dr. near Raleigh-Durham International Airport; the property was built in in 2000 and offers 61,485 square feet of space;
  • RDU Center III at 11635 Capital Boulevard in Raleigh; the property was built in  2009 and offers 114,518 square feet of space;
  • NorthPark I at 11635 Capital Boulevard in Raleigh; the property was built in 1997 and offers 47,957 square feet of space;
  • NorthPark II at 11640 Capital Boulevard in Raleigh; the property was built in 2008 and offers 52,236 square feet of space;
  • Five buildings of One North Commerce Center on Greens Dairy Road and Capital Boulevard in north Raleigh totaling 292,388 square feet of space;
  • Two buildings of MacGregor Place in Cary with a combined 87,914 square feet of space.

According to the Triangle Business Journal’s quarterly Space survey, at the time of sale, the properties had an average occupancy rate of about 70 percent.

The Dilweg Companies is a Durham real estate investment and development firm founded by former NFL quarterback Anthony Dilweg.

In 2013, the company invested $120 million in office building acquisitions, mostly in Charlotte and in Atlanta.

This year, Dilweg intends to spend a total $200 million in similar investment deals.

“We are looking forward to a very active third and fourth quarter this year,” Anthony Dilweg told the newspaper.

Photo credits: Beacon Partners

Wheelock Street Capital Acquires 316-Acre Master-Planned Community from NVR; New Student Housing Project Rising in Winston-Salem

27 Aug 2014, 9:54 pm

by Adriana Pop, Associate Editor

Wheelock Street Capital of Greenwich, Conn. has acquired the 316-acre master-planned community of Jordan Pointe in Apex from national home-building holding company NVR Inc., the parent company of NVHomes and Ryan Homes.

According to the Triangle Business Journal, the land, which is approved for 440 single-family residences to be built by NV and Ryan, sold for $12.6 million.

Wheelock Street Capital will develop the project in partnership with JPM South Development of Raleigh, N.C. Since 2011 the two companies have also been developing Traditions, a 700-home community in Wake Forest.

“We’re proud to expand our investment in the Triangle market with a second high-quality community that’s well located in the path of job growth,” said JPM South principal John P. Myers. “The property is within 30 minutes of the region’s major employment centers – Research Triangle Park, UNC, Duke and downtown Raleigh.”

Home sales at Jordan Pointe are slated to begin in late 2015. Amenities will include a junior Olympic pool, cabana, ball fields, gazebo and walking trails.

The new community will be located on the western boundary of the Town of Apex, which was ranked as the #9 Best Place to Live in America by CNN/Money in 2013.

In other news, a joint venture partnership between Balfour Beatty Construction and Holt Brothers Construction has been selected to build the 288-bed, 75,000-square-foot New Residence Hall – Freshmen Living/Learning facility for Winston-Salem State University.

The $16.7 million project will replace the soon-to-be-demolished Dillard Residence Hall.

The two companies are also working on the City of Raleigh’s Critical Public Safety Center along with Clancy & Theys Construction. The Winston-Salem State project, however, marks the first joint venture partnership between Balfour Beatty Construction and Holt Brothers.

“I am proud to continue our long-standing and valued partnership with Balfour Beatty on this exciting project for the vibrant community of learners at Winston-Salem State,” Terrence Holt, president of Holt Brothers Construction, said in a news release. “When you align companies like Holt Brothers and Balfour Beatty that share the same vision and strategy, you get a team that is stronger together than apart. The synergy is exciting.”

Construction on the project, which is being designed by Lord Aeck Sargent, is expected to begin in February 2015.

Photo credits: NVHomes

Brookline Investment Group Acquires 236-Unit Multi-Family Community in Durham for $23.6M; Investcorp Pays $84M for RTP’s Meridian Business Campus

20 Aug 2014, 9:54 pm

by Adriana Pop, Associate Editor

Brookline Investment Group of Aliso Viejo, Calif. is now the new owner of the just-renovated Yorktown Club apartment community in Durham.

According to the Triangle Business Journal, Starwood Capital Group of Greenwich, Conn. sold the 236-unit property for $23.6 million, or $100,000 per unit.

Located at 2029 Bedford St., Yorktown Club offers two-story, townhouse-style units, with rents ranging from $745 per month for a 1,200-square-foot two-bedroom apartment to $2,550 for a 2,200-square-foot, three-bedroom apartment.

Starwood Capital has recently completed the property’s interior and exterior renovation, including a new HVAC system.

The transaction marks Brookline’s first acquisition in the Triangle. Last June, the company purchased the 220-unit Arbor Village in Charlotte, its first apartment community in the Carolinas.

“We are excited about the growth in the Carolinas,” Will Milligan, a director at Brookline, told the newspaper.

With its latest acquisition, Brookline now owns eight multi-family properties in five states, including Georgia, Texas, Utah and Oregon.

In other real estate transaction news, the Triangle Business Journal reports that New York private equity firm Investcorp paid $84 million for the acquisition of the Meridian Business Campus in Durham.

American Real Estate Partners of Herndon, Va. was the seller of the property, which includes nine office buildings and 18 acres of undeveloped land.

Ben Kilgore and Brad Corsmeier of the CBRE-Raleigh commercial real estate firm represented the company in the marketing and sale of the 613,000-square-foot complex.

According to TBJ’s quarterly Space survey, the business park was 90 percent leased in the second quarter. Chimerix, Parexel International and Health Decisions Inc. are among the property’s tenants.

Another major Triangle deal between the two companies occurred in 2012, when Investcorp acquired three office buildings in Durham’s Keystone Park. American Real Estate Partners sold the properties for $48 million.

Photo credits: Brookline Investment Group

Leave a Reply