Raleigh-Durham Commercial Real Estate Wrap-Up – July 2020
- Aug 05, 2020
With the number of COVID-19 cases on the rise and North Carolina still in its second phase of reopening, Raleigh-Durham’s commercial real estate market faces an uncertain future. Investors largely have opted for a wait-and-see approach to new acquisitions: According to Triangle Business Journal, the market’s commercial investment volume in the second quarter dropped by 65 percent compared to the same period in 2019. However, though sales have declined, development and leasing activity continued. Here is our July selection of Raleigh-Durham must-reads:
1. FINANCING – Grubb Properties scores loan for Chapel Hill development.
Bank OZK provided the 106,000-square-foot speculative office project, known as The Gwendolyn, with a $21 million loan, according to Yardi Matrix. The developer broke ground in September 2019 with plans to deliver in 2021. Planned amenities include a fitness center, on-site café and bike locker. The four-story project is designed to achieve LEED certification. Located at 101 Glen Lennox Drive, the site is 1 mile from the University of North Carolina at Chapel Hill.
2. DEVELOPMENT – Merritt Properties breaks ground on Durham industrial project.
The developer signed a 7,305-square-foot lease with Shimadzu Corp. for space within the first structure of the four-building Merritt TW Crossing development. Located at the intersection of TW Alexander Drive and South Miami Boulevard, the full project will contain 282,471 square feet. Completion on the first building is scheduled for January 2021. CBRE represented the landlord, and JLL assisted Shimadzu with the lease.
3. LEASING – JLL to lease five North Durham buildings.
Moonbeam Capital owns the office and medical complex known as Durham Summit. The assets, built between 1984 and 1987, total 281,378 square feet and are located at 4020, 4101 and 4117 N. Roxboro Road and 3404 and 3414 N. Duke St., 2 miles from Interstate 85. JLL’s leasing team includes Dennis Hurley, John MacDonnell and Taylor McCuiston.
4. DEAL – Partnership sells Cambria Hotel in Durham.
According to Triangle Business Journal, Duke University acquired the two-building property for $9 million. The sellers, Concord Hospitality Enterprises and Robert Finvarb Cos., bought the asset for $10.2 million in 2015. The two buildings, comprising 148 guestrooms, are located at 3206 Elba St. and 400 Elf St. within the Duke University Medical Center. The new owner plans to rebrand the hospitality asset.
5. LEASING – Biotech firm inks full-building Research Triangle Park lease.
Cushman & Wakefield’s Deb Boucher and Paul Cranfill worked on behalf of bioMASON, while Lee & Associates represented the landlord. The property, which delivered in 1977, will become the company’s new headquarters. It has 14,000 square feet of office and 15,000 square feet of laboratory space with a future option to expand by another 30,000 square feet. Located at 2 Triangle Drive, the facility is within 7 miles of Raleigh-Durham International Airport.