Raleigh-Durham Commercial Real Estate Wrap-Up – November 2020
- Dec 03, 2020
November was an active month for Raleigh-Durham’s commercial real estate sectors, with both investors and developers focusing on mixed-use and industrial assets. As a result, several large transactions closed across the metro, led by a handful of major industry leaders. Developments included both new projects and existing assets slated for conversion. In addition, office construction carried on full speed ahead, with nearly 5 million square feet underway. Catch up with our November list of Raleigh-Durham must-reads:
1. DEAL – FCP, Kane Realty sell Raleigh mixed-use asset for $236 million.
An institutional client affiliated with MetLife Investment Management acquired The Dillon, a 2.5-acre mixed-use development in the Warehouse District. The 2018-completed property at 223 S. West St. comprises 221,300 square feet of office space, 52,600 square feet of retail and 271 residential units across two six-story buildings. The 18-story, LEED Gold-certified structure occupies a full city block next to Union Station. JLL assisted the seller in the deal.
2. FINANCING – Hines partnership gets $199.2 million for Cary project.
Bank OZK provided the four-year, floating-rate financing package for the construction of Fenton, a $1 billion mixed-use project between Hines, Columbia Development and USAA Real Estate. The project’s first phase will consist of 345,000 square feet of retail, and completion is slated for April 2022. The 69-acre development at 855 Cary Towne Blvd. will also include a 200,000-square-foot office component, a 175-key hotel and a 357-unit luxury community.
3. DEAL – Blackstone acquires Durham assets for $211.2 million.
In the first of two deals, the private equity giant purchased the two-building, 323,000-square-foot Patriot Park Phase I for $31.2 million from Strategic Capital. Completed in 2018, the Durham warehouses at 4032 Patriot Park Drive and 2 Freedom Court are within 3 miles of interstates 40 and 540. Separately, the firm acquired six parks in Greensboro which Highwoods Properties sold for $180 million. PGIM Real Estate arranged $120 million in floating-rate financing for the two acquisitions.
4. FINANCING – Longfellow lands $52.8 million for Morrisville conversion.
MetLife Investment provided the borrower with the five-year, floating-rate financing arranged by JLL. Longfellow acquired the 341,500-square-foot Perimeter’s Edge and plans to repurpose it into a life science campus. The single-story buildings at 2450 and 2600 Perimeter Park Drive, 507 Airport Blvd. and 515 McCrimmon Parkway are within the 3 million-square-foot Perimeter Park, one of the largest office campuses in the Research Triangle.
5. DEAL – Realty Income pays $40.9 million for Garner distribution center.
Oak Street Capital sold the 133,500-square-foot Martin Brower/McDonalds Distribution Center, according to Triangle Business Journal. The Class A asset last traded in 2015 for $35 million. Situated on 20 acres at 1400 N. Greenfield Parkway, the single-story building was completed in 2008. The property is some 5 miles from downtown Garner, just north of Interstate 40 and adjacent to Duke Realty’s Greenfield North Business Park.