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

Longfellow buys office property for $138 million. Alexandria Real Estate spends $590 million on R&D portfolio. Catch up on our August selection of Raleigh-Durham must-reads.
Durham.ID. Image courtesy of Longfellow Real Estate Partners

While the number of new coronavirus cases declined in the first half of the month, the last two weeks of August saw a notable uptick. However, even if the future of Raleigh-Durham’s commercial real estate sector remains uncertain, several landmark deals closed. With scientists worldwide racing to develop a COVID-19 vaccine, investors chose to hedge their bets by pouring capital in some of the most in-demand asset classes: life sciences and research and development. Here is our August list of Raleigh-Durham must-knows:

1. DEAL – Longfellow Real Estate pays $138 million for office asset.

The company, in partnership with Bain Capital Real Estate, had already held an interest stake in Durham.ID, the 330,369-square-foot property, but now fully owns the asset through its Longfellow Strategic Value Fund. JLL Capital Markets represented Bain Capital. Located at 200 and 300 Morris St., the complex encompasses two buildings delivered in November 2018. The property is the first phase of the Durham Innovation District, a 1.8 million-square-foot project containing office, lab, retail and residential space.

2. DEAL – Alexandria Real Estate buys Research Triangle Park portfolio for $590.4 million.

Karlin Real Estate completed the disposition of seven parcels totaling 253 acres in the Parmer RTP campus, according to the Triangle Business Journal. The research and development assets are located at 5 and 41 Moore Drive, 14 TW Alexander Drive and 1818 and 2400 Ellis Road. The buyer funded the purchase through three self-financed loans totaling $593 million, Durham County records show.

3. PEOPLE – Lee & Associates hires retail veteran.

The company hired Christina Coffey to serve as vice president on its landlord and tenant representation team. Prior to joining the firm, Coffey worked as a vice president for CBRE since 2013. She also previously held various roles at Hunter & Associates, where she began her real estate career in 2002. During her 18 years in the industry, Coffey closed more than 475 retail transactions totaling $190 million.

4. DEAL – Veteran Administration clinic changes hands.

Carrboro Capital sold a 26,871-square-foot medical office building for $7.1 million, according to Yardi Matrix data. Greenleaf Management purchased the property, backed by a $4.6 million acquisition loan from First National Bank of Pennsylvania. Located on 2 acres at 1830 Hillandale Road, the two-story structure delivered in 1970. The site is 2 miles north of the Durham VA Medical Center and 4 miles northwest of the city center.