Dilweg Grabs Quadrangle in the Triangle
- Nov 10, 2016
Chapel Hill, N.C.—The Dilweg Cos. of Durham, N.C. has acquired Quadrangle, a four-building, 25.9-acre Class A office park in Chapel Hill, the company announced earlier this week.
Quadrangle II, III, IV and V total 264,400 square feet and were built between 1988 and 1996. The buildings, also known as 6320, 6330, 6340 and 6350 Quadrangle Drive, are currently 91 percent leased.
The tenant roster at Quadrangle is STEM-heavy, as is often typical of the Research Triangle (Raleigh–Durham–Chapel Hill) office market. Major tenants include Rho Inc., Cempra Pharmaceuticals, Intrahealth International, TMW Systems, Divi Hotels Market Inc. and Global Education Institute.
The park is at the intersection of I-40 and Highway 54 near Highway 15-501, which links the University of North Carolina at Chapel Hill to Duke University. The location reportedly is less than 15 minutes from Raleigh-Durham International Airport, Research Triangle Park and downtown Durham.
HFF represented the seller in the transaction and also, working on behalf of the purchaser, placed the five-year, floating-rate acquisition loan with MidFirst Bank. The HFF investment sales team representing the seller was led by Senior Managing Director Ryan Clutter, Director Scot Humphrey and Associate Director Chris Lingerfelt. HFF’s debt placement team was led by Senior Managing Director Travis Anderson and Director Brent Bowman.
“Quadrangle is an exceptionally well-located office park that was well received by investors during our marketing campaign,” Clutter said in HFF’s separate announcement. “Many institutional investors are attracted to assets near major college campuses, given the unique tenant demand these locations can often garner.”
HFF was unable to provide additional information, and Dilweg did not respond to Commercial Property Executive’s query.
A report in the Triangle Business Journal, however, indicated that the seller was Property Reserve Inc. of Salt Lake City, an affiliate of the LDS Church, and that the transaction was valued at $41.5 million.
Dilweg reportedly plans to invest more than $2.5 million to improve the buildings’ operating systems, common areas and tenant amenities. Amenities at the campus currently include walking trails, weekly visits from food trucks, an 1,800-square-foot fitness center, on-site roving security and parking for more than 1,000 vehicles.
The Orange County, N.C., office market consists of about 1.5 million square feet of rentable space that currently has a Class A vacancy rate of 13.0 percent, according to a third-quarter report from CBRE. The report notes that third-quarter net absorption was a negative 34,700 square feet, 156,000 square feet of space is under construction and the Class A average asking lease rate is $26.06.