Scannell Properties Snaps Up NC Warehouse
- Feb 16, 2018
The Dilweg Cos., a Durham, N.C.-based commercial real estate investment firm which has been boosting its portfolio with office properties in recent years, has completed the sale of its last large warehouse asset.
Regional Commerce Center, a 1.2 million-square-foot warehouse complex at 706 Ellis Road in Durham, was sold to Scannell Properties of Indianapolis for $6.7 million.
HFF’s Investment Advisory Team represented Dilweg and consisted of Senior Managing Director Chris Norvell, Managing Director Justin Good and Director Patrick Nally.
The 46-building warehouse complex, which was 34 percent leased at the time of the sale, is located on 65 acres directly adjacent to state Highway 147. It was built in 1929 and had operated as a tobacco drying warehouse until 2005.
“RCC is perfectly positioned for development and we are looking forward to seeing the next phase of life for the property. This transaction marks the sale of our last large warehouse asset, allowing our team to focus on our principal strategy, enhancing office assets in the Southeast,” CEO Anthony Dilweg, said in a prepared statement.
The site may be redeveloped by Scannell as 900,000 square feet of office and warehouse space, the Triangle Business Journal reported. Scannell, a privately owned real estate development and investment company focusing on build-to-suit and speculative projects, has been active in North Carolina. Last month, the firm bought an 18.3-acre land parcel in Huntersville, N.C., a Charlotte suburb, where it plans to build an approximately 150,000-square-foot industrial flex building among other projects in The Park, a master-planned development. Last year, Scannell also acquired an adjacent 22-acre site where it will construct an R&D and manufacturing facility.
Dilweg office deals
Dilweg owns nearly 2 million square feet of commercial real estate in the Raleigh-Durham area and more than 6 million square feet in the Southeast. The portfolio, which consists of more than 25 properties, has Class A office, flex, mixed-use, retail and warehouse properties in North Carolina, Virginia, Florida, Georgia and Tennessee. In April, Dilweg moved into Florida with the acquisition of a Class A office building, the 245,293-square-foot Sarasota City Center. In June, the firm added to its Florida holdings with the purchase of a seven-building Class A suburban office portfolio totaling 698,100 square feet of space in Tampa.
Image courtesy of The Dilweg Cos.