KBS Realty Advisors Acquires Top Raleigh Office Tower for $98.4M
- Feb 04, 2013
KBS Realty Advisors acquired Captrust Tower, a prestigious, 300,389-square-foot office and retail building in the North Hills area of Raleigh, N.C., for a reported $98.4 million.
“KBS’s philosophy is to invest in the top buildings in the top markets, and Raleigh is one of the top markets, expected to outperform in the foreseeable future,” Stephen Evan, the company’s senior vice president of acquisitions, told Commercial Property Executive. “Captrust is arguably one of (the best buildings), if not the best building, in Raleigh.”
Located at 4208 Six Forks Road, the LEED Gold-certified building offers 275,630 square feet of office space and 26,813 square feet of retail space, in addition to a six-level parking deck.
“The building is new, efficient, LEED Gold and leased to a very diverse group of tenants,” Evan pointed out. The 17-story building is 95 percent leased to 18 tenants, including Captrust Financial Advisors, the American Board of Anesthesiology, Regus, RBC Capital Markets and other national and regional tenants.
It is also located within a mixed-use project that includes such retailers as Target and Lululemon; two hotels; 20 restaurants at a wide range of price points, a new high-end Harris Teeter and several hundred apartment units, with more under construction.
“The building is basically new, but we may fine-tune certain aspects of the property and complete the tenant build-out for a couple expanding tenants,” Evan added.
The company has been focused on Raleigh and specifically Captrust Tower due to the quality of the master plan and the the mix of uses already in place and planned. “Raleigh is a fairly steady market, without the extreme volatility in many of the other ‘boom and bust cities,’ ” Evan said. He noted that the Urban Land Institute and PricewaterhouseCoopers’ 2013 Emerging Trends investors’ study and a recent CoStar Group report both ranked Raleigh as a top five city going forward, based on demographic and employment trends.
The building was developed by Duke Realty and Kane Realty in 2009. Duke sold its stake, but Kane will continue to have an ownership interest in the project through a joint venture with KBS.