Hock Plaza in Durham Fetches $142M
- Jan 25, 2018
CBRE has brokered the sale of Hock Plaza, a 327,160-square-foot, Class A medical and educational office building in Durham, N.C. Harrison Street Real Estate acquired the 12-story property for $142 million from Hines, according to public records. Capital One facilitated the transaction with $71 million in acquisition financing.
Occupied by Duke University, the facility is located at 2424 Erwin Erwin Road on a 2.5-acre site, adjacent to Duke University Hospital. Hock Plaza was completed in 2004 and hosts essential functions for the Duke University Medical School and Duke University Medical Center. Additionally, the property includes a 1,057-space parking garage.
The Research Triangle advantage
Located in North Carolina’s Research Triangle, Hock Plaza is home to 34 different Duke University medical institutes, centers and research functions, including the Duke Cancer Institute, the Center for Autism and Brain Development, and the Center for Smoking Cessation.
The advisory team led by Senior Vice President Jay O’Meara and Vice Chairman Will Yowell of CBRE’s Capital Markets branch alongside Executive Vice President Lee Asher and Vice Chairman Chris Bodnar of CBRE’s Healthcare Capital Markets Group, and Executive Vice President Ben Kilgore of CBRE Raleigh represented the seller in the negotiations.
“This offering was a rare investment opportunity and we received strong interest from a variety of domestic pension funds, foreign capital and health care-focused groups. The scarcity and quality of this asset in an irreplaceable location led to this successful transaction at what is a record price per square foot in the state of North Carolina,” O’Meara said in prepared remarks.
“Hock Plaza is within a five-minute car ride from downtown Durham, which is in the midst of a transformative revitalization with 1,800 residential units recently delivered and several successful redevelopment projects that have lured restaurants, retailers, and entertainment venues to the market,“ Kilgore added.
Image courtesy of CBRE