Raleigh Office Building Lands $85M Construction Loan
- Nov 01, 2018
Kane Realty Corp. and Lionstone Investments recently landed financing for Tower IV, an approximately 326,600-square-foot office project in the Midtown district of Raleigh, N.C. With the assistance of commercial real estate and capital markets services provider HFF, the joint venture obtained an approximately $84.7 million construction loan.
Bank OZK provided the financing for Tower IV, which will rise 18 stories at 4000 Front St. within the sprawling North Hills mixed-use development. The building will feature Class A office accommodations above an eight-story, 880-space parking deck and roughly 8,200 square feet of ground-level retail space. According to HFF, the Tower IV’s office segment is significantly preleased. Most recently, IAT Insurance Group committed to 61,000 square feet.
Travis Anderson, senior managing director with HFF represented the sponsorship in the financing deal, along with fellow debt placement team members Roger Edwards and John Gavigan, senior director and associate, respectively.
Building in Raleigh
The Raleigh-Durham office market continues to fare very well, and the Triangle’s skilled labor pool plays a large role in the area’s ongoing success. “With an unemployment rate of 3.5 percent, talent attraction continues to be a top concern for tenants in the Raleigh-Durham market,” according to a report by commercial real estate services firm JLL. Consequently, developers are answering demand with new product.
Projects currently in the pipeline in Raleigh include Dominion Realty Partners’ 209,145-square-foot Wade V building, which just got underway. One Glenwood, a 228,000-square-foot tower by Heritage Properties is 50 percent leased ahead of its scheduled first quarter 2019 delivery. Tower IV is on track to reach completion in 2020.
Image courtesy of HFF