Investcorp Affiliate to Acquire Durham Office Portfolio for $48.4M
- Sep 27, 2012
by Adriana Pop, Associate Editor
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.