Principal Global Investors Trades NC Office Park
- Jul 23, 2019
JPB Holdings has acquired NorthChase I & II, a two-building, 165,000-square-foot office park in Raleigh, N.C., for $39.8 million from Principal Global Investors, according to Yardi Matrix. Reinsurance Group of America provided the buyer with a seven-year, $29 million financing package. The seller purchased the campus in mid-2013 for $11.7 million from a private investor.
Located at 6501 and 6601 Six Forks Road, the four-story NorthChase I & II are in a suburban setting 7 miles north of downtown Raleigh. The area is home to several smaller office buildings and a number of retail properties 1 mile north at Sawmill Road.
The smaller of the two buildings, the 57,332-square-foot NorthChase I, is fully leased to Merz Pharma—the firm operates its North American headquarters out of the structure. NorthChase II is occupied by a mix of tenants including Phillips Architecture, Eastwood Homes and Better Homes & Gardens Real Estate.
The two assets opened in 1983 and 1985, previously serving as the headquarters for Genworth Financial’s mortgage insurance business. The firm vacated the park in 2009, and Principal invested in renovation work in 2014 following its acquisition of the campus.
More than $400 million of office transactions have closed in the metro this year, Yardi Matrix data shows. The Morrisville submarket, 15 miles west of JPB’s acquisition, has had the most activity to date. In April, Align Technology paid nearly $60 million for a 200,000-square-foot Class A building in the area.