Repositioned Raleigh Office Asset Trades for $18M
- Nov 01, 2019
A joint venture between The Runnymede Corp. and a private investor has acquired Carolina Corporate Centre, a 91,709-square-foot office property in Raleigh, N.C., from The Simpson Org. The asset changed hands for $17.9 million, according to Triangle Business Journal. Cushman & Wakefield represented the seller in the transaction.
The Simpson Org. had acquired the property from Brookwood Financial Partners in August 2016 for $12.1 million, per data from Yardi Matrix.
Located 6 miles north of downtown Raleigh at 5400 Glenwood Ave., the building is alongside U.S. Highway 70, a short distance south from a major retail corridor. Yardi Matrix shows 14 office properties within a mile of Carolina Corporate Centre. Most are somewhat dated, with an average age of 33 years. One of those assets, the 65,000-square-foot Crabtree Center, sold in June for $10 million.
Runnymede’s acquisition—though 33 years old itself—was repositioned prior to disposition. When The Simpson Org. purchased the property, it was 80 percent leased. After significant updates to building amenities and common areas, leasing activity followed. At the time of sale, the asset was 98 percent leased to a mix of tenants including PrimeLending, HMD Development and CDM Smith Inc.
This year, office investment transactions reached $936.7 million in the metro through the end of October, according to Yardi Matrix. While activity has slowed since last year’s $1.6 billion in volume, the market’s inventory remains in high demand, as employers continue to expand or relocate and as people continue flocking to the region.