Oxford Properties Buys Research Triangle Park Portfolio for $138M

DURHAM, NC – Oxford Properties Group has acquired Research Commons, a five-property office portfolio in Durham, NC, for $138 million.

Located at 79 TW Alexander Dr. in the largest dedicated research park in the country, Research Triangle Park, Research Commons is primarily occupied by life sciences and life sciences-adjacent companies. The property offers the opportunity to deliver additional life sciences space, based on the tenant roster, the location and the existing buildings’ structural features.

JLL capital markets marketed the property on behalf of the seller, procured the buyer and closed the sale. JLL worked on behalf of the buyer to arrange $127.5 million in financing from United Overseas Bank Limited.

“Growing a meaningfully-sized life science business is one of Oxford’s highest conviction global investment strategies,” says Andy Field, VP of investments at Oxford Properties. “We believe that the Research Triangle is set to benefit from the secular tailwinds driving demand in the life science sector.”

Field adds, “This transaction will add the required infrastructure to help innovative firms at all stages of their life cycle bring life-changing therapeutics to market. We are thankful for the support shown by JLL capital markets and United Overseas Bank in helping us achieve this goal.”

Raleigh-Durham currently serves as one of the nation’s top five life science areas. The region is experiencing robust corporate relocations and in-migration as companies and employees seek low cost of living, high quality of life and business friendly locales. There are additionally 12 colleges and universities within the area, including Duke University, the University of North Carolina at Chapel Hill and North Carolina State University.

“This offering attracted significant investor interest both domestically and internationally,” says John Mikels, director at JLL. “Raleigh has emerged as an amazing life science hub, but as of late, is also firmly on the radar of the global community as a prime investment market. Ultimately, we were able to source a global buyer and finance the transaction from a Singapore-based lender highlighting the global appeal of the asset and the market.”

“Despite a tight timeline, we procured a wide variety of interest from debt funds, life companies and banks, which speaks volumes not only to the caliber of sponsorship, but also to lenders’ evolving views of the life science asset class and the emergence of the Triangle as a target market for lenders,” says Aaron Niedermayer, senior managing director at JLL. “The United Overseas Bank team ran a seamless process, and we couldn’t be happier to have facilitated this transaction on behalf of Oxford.”

The JLL capital markets team representing the seller was led by directors John Mikels and Daniel Flynn, senior managing director Ryan Clutter, senior director Chris Lingerfelt and analyst Woody Flythe. JLL capital market’s senior managing director Aaron Niedermayer and managing director Roger Edwards led the financing efforts on behalf of Oxford Properties.