Red Hat Negotiates to Sublease Downtown Building
- Sep 07, 2011
Red Hat Inc. is currently in negotiation with Progress Energy Inc. for a sublease of the downtown building, Two Progress Plaza. The building was leased by Progress Energy for a 30-year term in 2004, and will be sub-leased by Red Hat, which is planning to accommodate about 600 of its Raleigh workers.
The sub-lease is still being negotiated, but representatives remain optimistic about reaching a favorable result. The building located at the corner of Wilmington and Davies Streets is currently occupied by Progress Energy’s employees and encompasses 365,000 square feet.
According to spokesman Scott Sutton, the relocation will be gradual. The majority of employees will be moved to the Progress building at 4120 South Wilmington Street, while the rest will go to offices in Charlotte, Cary, and Spring Forest Road in Raleigh. Progress Energy expects the transition to be completed by the end of 2012.
According to the Triangle Business Journal, Red Hat’s current headquarters is at N.C. Status University’s Centennial Campus. Michael Harwood, the associate vice chancellor for Centennial Campus development, supports Red Hat’s decision to relocate by emphasizing the contributions the company will bring to Raleigh.
In related news, NCSU has chosen Bell View Partners LLC, Raleigh, led by Michael Sandman and a Washington, D.C., development firm, The Bernstein Companies, to develop their 1.3-acre site on Hillsborough Street.
Bell View Partners and The Bernstein Companies proposed a project that includes a 125-room hotel, which will feature retail shops and a restaurant. The project is located on Hillsborough Street between Enterprise Street and Maiden Lane. It will include the Hillsborough Square parking facility next to David’s Dumplings and Players Retreat.
Bell View Partners is a private real estate company focused on the acquisition and management of high quality apartment communities located in the Mid-Atlantic, Southeast, and Southwest United States.