NC Office Asset Fetches $56M
- Jan 25, 2018
An affiliate of Innovatus Capital Partners has acquired Palladian Corporate Center, a Class A office property in Durham, N.C. for $55.6 million. The asset was purchased free and clear of existing debt. HFF marketed the property on behalf of an institutional owner advised by Clarion Partners, and arranged acquisition financing with Citizens Bank on behalf of Innovatus.
Located at 200 and 240 Leigh Farm Road, Palladian Corporate Center comprises two buildings: Palladian I and II. Palladian I features 100,462 square feet and was constructed in 2005, while Palladian II offers 100,546 square feet and was completed in 2007. Totaling 201,008 square feet, the two assets are collectively 98.4 percent leased to major tenants such as AICPA, Eco-Site LLC and Northwestern Mutual. The four-story properties include well-landscaped exteriors, weekly scheduled food trucks, brick and glass facades and access to adjacent walking trails. Situated in an infill location within the South Durham submarket, Palladian Corporate Center is within close proximity to Interstate 40, the Highway 54 corridor, the University of North Carolina and Duke University.
The HFF investment advisory team of Senior Managing Director Ryan Clutter, Senior Director Scot Humphrey and Director Chris Lingerfelt represented the seller, while Senior Director Brent Bowman of the debt placement team represented the buyer.
“Palladian Corporate Center offers a rare opportunity to acquire a best-of-class asset in the Raleigh-Durham market. Few office assets of this quality and at the rents Palladian commands have traded in this economic cycle,” said Clutter, in a prepared statement. “We are pleased to have found a sophisticated, knowledgeable buyer in Innovatus. Given the strength of the Raleigh-Durham market, continued upward pressure on rents and no new construction in certain micro markets, we anticipate very similar pricing to transpire on many more assets in the area throughout 2018 and beyond.”
This is the second acquisition for Innovatus in the Raleigh-Durham area. Last March, the company purchased two office properties within Keystone Office Park in Durham for $45 million.
Image courtesy of HFF