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

Welltower cashes in on $33 million Durham sale. City of Raleigh halts major project. Read our June list of Triangle must-knows.
Woodlake 501. Image courtesy of Duke Realty Corp.

While some Fourth of July parades and firework displays will go forward and restaurants, salons and stores are open at limited capacity, the Raleigh-Durham commercial real estate market is facing its share of uncertainty. With the number of reported coronavirus cases and hospitalizations on the rise and the state still in the second step of its three-phase reopening, most investors remained on the sidelines, waiting for a clearer outlook. Here is our June selection of Raleigh-Durham real estate must-reads:

1. DEAL – Durham MOB trades for $33 million.

Welltower sold the 67,644-square-foot Croasdaile Commons to a partnership between Kayne Anderson Capital Advisors and MB Real Estate. Capital One provided a five-year acquisition loan. The property last changed hands in 2014, when Glenwood Development Co. sold it for $27 million. Located at 1821 Hillandale Road, on a 5-acre site, the asset is just off Interstate 85.

2. DEVELOPMENT – Production facility to open in Research Triangle Park.

GRAIL Inc., a California-based health-care company, has selected the area for the opening of the $100 million property with the assistance of Newmark Knight Frank. The building is slated to encompass 200,000 square feet. In addition to a laboratory, the facility will also feature office and warehouse space. NKF’s team included Jay Phillips, Wayne Kumagai, Ben Stern and Doug Brock.

3. LEASING – Duke Realty Corp. lands tenant at Morrisville building.

A digital graphics producer signed a lease for the entirety of Woodlake 501, a 153,990-square-foot warehouse. The property features 28-foot clear heights, eight dock-high doors, 260 parking spaces, and ESFR sprinkler systems. Located at 501 Innovation Ave., the warehouse is one of seven buildings in Woodlake Center, Duke’s 812,000-square-foot distribution park.

4. LEASING – JLL arranges 50,000-square-foot lease in Chapel Hill.

John MacDonell and Ashley Lewis assisted State Employees’ Credit Union, the owner of The Parkline, an office asset located at 1830 Fordham Blvd. The tenant is slated to move into the building in late 2020. The property, which underwent a complete core and shell renovation, features open-air patios and outdoor seating, as well as a new fitness center and refurbished lobby.

The 210,000-square-foot property came online in 1973 and last traded in 2015, when Blue Cross Blue Shield sold it for $35 million, Yardi Matrix data shows. 

5. DEVELOPMENT – Local authorities pause major downtown Raleigh project.

Due to the prospect of free-falling hospitality tax revenue figures caused by the pandemic, the City has halted proceedings for the planned development on the site of two parking lots next to the Duke Energy Center for the Performing Arts, according to the Triangle Business Journal. The project, which was in the stage of soliciting proposals, called for a 500-key hotel and a mixed-use Class A tower.