To shine a light on Raleigh-Durham, the Triangle, and the general region as a whole, APG Advisors regularly compiles some of the commercial real estate news highlights in order to examine the current state of the North Carolina real estate market.
$100M Land Deal in RTP includes site for stalled 650-job factory
A property in Research Triangle Park that was formerly tapped to be a manufacturing and production site for vaccine injection devices has been sold to a California real estate investor. Alexandria Real Estate Equities (NYSE: ARE) paid just under $100 million for 122 acres off East Cornwallis Road. ARE has been very active in RTP as the company continues to bet on the thriving demand for life science space. Executive Chairman and founder Joel Marcus said there are no specific plans for the property yet but the vision will be similar to ARE’s other properties in RTP. Read More
Office Downtown Raleigh development nets $330M in mega sale
Baltimore-based Heritage Properties closed on the sale of its multi-tower, mixed-use development called Bloc83 to City Office REIT (NYSE: CIO) of Canada for $330 million; it’s the largest single real estate transaction in downtown Raleigh’s history. The deal included 495,121 square feet of space in Class A office towers One Glenwood and Tower II, which Heritage Properties completed in 2019 and 2021, respectively. The sale did not include the site of the third planned tower in the development, which Heritage Properties still owns and plans to develop in 2022.
CSX aims to develop major rail facility in Greater Triangle
One of the country’s largest rail companies is looking to construct a new rail yard outside Sanford in a move that would be a boon for the local industrial market. CSX Corp. (Nasdaq: CSX) is looking to rezone 244 acres from residential agriculture to heavy industrial in order to develop a new rail yard. The vacant land is currently owned by Bullard Trailer Sales No. 2 Inc. and sits along a CSX rail line. Lee County staff wrote “the request does not conform with the recommendation of the long-range plan designation of Countryside; however, it is a unique location given the access to two railroads and a public road, which may warrant a reasonable expectation that the property would be used for a commercial purpose.” Read more
Eco-devo pipeline in the Triangle could shape Durham into electric vehicle hub
Ryan Regan, vice president of economic development at the Greater Durham Chamber of Commerce, says that about half of Durham’s overall project pipeline is coming from companies in the electric vehicle sector; 15 active projects amounting to a potential 8,000 jobs and $2.5 billion in capital investments combined. Read More
Six-Figure Jobs on the Rise in Raleigh.
Raleigh ranked 12th among large metros nationally with the most growth in jobs that pay annual wages of $100,000 or more. The city saw a 109.2 percent increase in the number of six-figure jobs between 2015 and 2020, according to Stessa, a real estate and market research platform based in California. The study looked at data from the U.S. Bureau of Labor Statistics and found the percentage of Raleigh’s total employment in six-figure jobs was just under 10 percent in 2020 (61,470 workers). Read more
Access to talent drives Thermo Fisher push in NC
Thermo Fisher Scientific (NYSE: TMO) continues to expand its presence in North Carolina. The company has announced its most recent project in the state, a manufacturing facility in Orange County that will create between 150 and 200 jobs. This follows plans to expand existing operations in Greenville, as well as the company’s announcement that it is acquiring Wilmington-based PPD (Nasdaq: PPD), which has a large presence in the Triangle, for $17.4 billion. Thermo Fisher’s interest in North Carolina is largely tied to its talented workforce and access to the company’s biotechnology and pharmaceutical customers.
Raleigh hotelier bets on northwest Cary thanks to Apple
Parks Hospitality Group paid $2.8 million for a slice of land at the Alston Town Center retail plaza with plans for a 7-story, 175-room hotel with dual brands – Hampton Inn and Homewood Suites by Hilton. The property is situated on 2.7 acres at the corner of Mahal Avenue between NC-55 and I-540. Parks Hospitality hopes to begin construction by the end of next year and open the hotel in 2024. Read more
Developers plan $600M high-rise project across from Dorothea Dix Park
Raleigh-based SLI Capital teamed up with Mack Real Estate Group of New York to purchase an assemblage of 15 properties spanning 7.5 acres on the edge of Dorothea Dix Park in Raleigh. Situated at the corner of South Saunders Street and Hammell Drive, the total purchase price was $34.75 million. The companies are planning a two-phase development, with the first to feature a pair of 20-story mixed-use apartment towers. The total cost across both phases is expected to come in at around $600 million.
Maryland real estate investor snags 329 rental homes on Raleigh golf course
A collection of LLCs addressed to Maryland-based Artemis Real Estate Partners paid $55.475 million for 329 townhomes in the Hedingham community in east Raleigh. Wake County records reflect the homes date to the early 2000’s and each building features two units. The deal comes out to an average of $168,617 per home. Single-family rentals have become a growing business in recent years as the housing shortage continues to boost home prices and rents, drawing a growing number of investors to the market. In the Triangle, investors make up around 17 percent of home purchases as of Q2 2021, according to an analysis by Redfin.
You can read about Q3 2021 North Carolina Commercial Real Estate News here.