Sun Life Offloads NC Office Portfolio

The transaction, valued at more than $30 million, includes approximately 223,000 square feet near Raleigh-Durham. The seven buildings in the deal will soon undergo renovation work.

Sun Life Assurance Co. of Canada has sold a 223,118-square-foot office portfolio in the Raleigh-Durham, N.C., area to RealOp Investments for $30.6 million. The buyer financed the acquisition with a $24.2 million loan held by Wells Fargo, according to public records.

“We look forward to enhancing the tenant experience with property improvements that will begin immediately, and to future investment across the region,” said Reggie Bell, CEO of RealOp Investments, in a prepared statement. The firm earlier expanded its office holdings this year with the purchase of a nearly 200,000-square-foot office campus in Tampa, Fla.

“Just making Amazon’s list for a potential East Coast headquarters is a win for our market,” said John Linderman, principal & managing director of Avison Young’s North Carolina region, in prepared remarks. “We’ll continue to see more and more investors give the Triangle a closer look when searching for real estate investment opportunities.”

Blake Thomas and Grant Linderman of Avison Young represented the seller in the transaction. The firm’s Arnold Siegmund and Carlo DiGiorgio will continue to provide leasing services to the properties.

Multi-tenant portfolio

The first asset included in the transaction, RDU Center I, is a two-story, 60,083-square-foot building located at 3000 RDU Center Drive in Morrisville, one mile from Raleigh-Durham International Airport. Constructed in 1999, the property is home to tenants including Moseley Architects, Myocardial Solutions and Neusoft, according to Yardi Matrix data.

Three buildings in the portfolio, Horizon I, II and IV, are situated at 110 Horizon Drive and 7701-7721 Six Forks Road in Raleigh. Containing 105,747 square feet, the structures have a vacancy rate of 22.1 percent, per Yardi Matrix data from June. The tenant roster includes RE/MAX, the American Dairy Products Association and PLC Wealth Management.

Franklin Park rounds out the deal, with three buildings at 1512, 1516 and 1520 E. Franklin St. in Chapel Hill. About 2 miles from both Interstate 40 and University of North Carolina, the property is positioned near a range of retail, hospitality and office assets. The structures, constructed in 1996 and renovated in 2007, house tenants including UNC Health Care, Gather Digital and The Forestland Group.

Images courtesy of Avison Young