Raleigh-Durham Commercial Real Estate Wrap-Up – April 2020

TPG shells out $60 million for office portfolio. Mixed-use property sells for nearly $35 million. Read our April selection of Raleigh-Durham must-knows.
The Creamery. Image courtesy of Turnbridge Equities

Despite the effects of the shelter-in-place directive issued on March 30, commercial real estate activity in Raleigh-Durham did not grind to a halt in April. Several office deals closed, and Pacific Retail Capital Partners landed a 1.3 million-square-foot management contract—even as retail continues to be one of the hardest-hit sectors nationwide. Here is our April selection of Raleigh-Durham must-reads:

1. DEAL – Northpond Partners sells mixed-use asset for $34.7 million.

Turnbridge acquired The Creamery, an 82,000-square-foot property which includes office, retail and residential space. ACORE Capital provided a $19.5 million acquisition loan, public records show. Originally built in 1920 as a dairy plant, the property was converted into a commercial building in the late 1990s. The new owner intends to invest $1 million into capital improvements, with plans to replace the roof, improve the HVAC system and restore the building façade. 

2. MANAGEMENT – Pacific Retail to manage 1.3 million-square-foot retail property.

The firm will additionally partner with The Malley Co. to handle leasing for Crabtree Valley Mall in Raleigh. Located at 4325 Glenwood Ave., the property opened its doors in 1972. Macy’s and Belk serve as anchor tenants. The mall is home to a number of national retailers including H&M, Apple Store, Forever 21 and North Face.

3. DEAL – TPG pays $60 million for four Durham office buildings.

Starwood Property Trust closed the $24.1 million sale of TBC Place I & II, two office properties totaling 177,000 square feet in Triangle Business Center. Additionally, Alidade Capital sold Buildings 2A & 2B in the same area for $36 million, according to Yardi Matrix. Located at 4020, 4021 and 4025 Stirrup Creek Drive, the portfolio’s building opened in 1983, 1999 and 2000. 

4. DEAL – Duke Health asset sells for $5.7 million.

A private investor acquired the 14,915-square-foot medical office building from Urban Investment Research Corp. Wells Fargo provided the buyer with a $3 million financing package, according to public records. CBRE assisted the seller, and Trinity Partners represented the buyer. Built in 2003 and renovated in 2018, the property is located at 3004 Tower Blvd. in Durham. Duke University Health System Inc. occupies the facility under a 15-year, triple-net lease.