Companies Initiate Bulk Sales of Office Portfolios in the Triangle
- Sep 07, 2011
In an attempt to increase industrial and medical office assets, various companies in the Triangle have started to sell their office portfolios. Duke Realty, an Indianapolis-based company, listed for sale six buildings that represent about 12 percent of the company’s assets in the region – 6501 Weston Parkway, 5520 Capital Center, 5540 Centerview, 5565 Centerview, 801 Jones Franklin and Brook Forest. Built between 1986 and 2000 and encompassing 426,815 square feet, four of the properties are in West Raleigh, one in Cary and one in North Raleigh.
Using a similar strategy, Hamilton Merritt Inc. is selling a portfolio that includes 12 suburban office buildings in the Triangle, representing 75 percent of the company’s assets in the area.
According to the News Observer, the decision to sell in bulk emphasizes the increasing interest of institutional investors in the area. Jeff Sheehan, SVP with Duke in Morrisville, commented that selling bulk properties is a good incentive for institutional investors to gain a foothold in the region.
Duke Realty Corp. is one of the largest commercial real estate companies in the United States with about 141 million square feet of industrial, office, and medical office properties in 18 major U.S. cities. The company provides leasing, property management, site selection, development, financing and construction services.
In related news, Marcus & Millichap secured the listing for Dick’s Sporting Goods at 3212 Mount Moriah Rd. The 58,085 square feet building is listed at $13.4 million. Marc Strauss, first vice president of investments in Marcus & Millichap’s Fort Lauderdale office and David Wells, senior associate in the firm’s Miami office, will represent the seller. “In spite of the stalled economy, single-tenant retail properties remain highly sought-after among investors. This asset is located just 10 minutes from historical Chapel Hill, which draws significant demand from students and staff at Duke University,” said Strauss.