New Raleigh Office Development Trades for $330M
The acquisition of the 495,121-SF, class A office property serves as the largest single real estate transaction in downtown Raleigh, NC’s history.
RALEIGH, NC – City Office REIT has purchased a new 495,121-square-foot, trophy office development in Raleigh, NC for $330 million. The REIT acquired the property from Heritage Properties.
The acquisition of the property, titled Bloc 83, represents the largest single real estate transaction in downtown Raleigh’s history.
Bloc 83 comprises two class A office towers, One Glenwood and Tower II, which were completed in 2019 and 2021, respectively. The properties are 79% leased and anchored by tenants, Envetnet, First Horizon Bank and McAdams.
Located at 1 Glenwood Ave. and 621 Hillsborough St. within Raleigh’s Glenwood South district, the development features best-in-class tenant buildouts, street level retail space and two on-site parking garages, as well as a state-of-the-art fitness center, rooftop amenity space, locker rooms, an interactive sports room with a golf simulator and tenant lounges.
Positioned on 3.23 acres of land, Bloc 83 is surrounded by multifamily, residential, retail, entertainment and restaurant space. The One Glenwood parking garage is additionally attached to the 126-room, Origin Hotel. The property is also situated near Union Station.
JLL capital markets represented the seller, procured the buyer and closed the sale. Representing the seller was a JLL capital markets team led by senior managing director Ryan Clutter, directors John Mikels and Daniel Flynn, and senior director Chris Lingerfelt.
“Glenwood South has rapidly transformed into the preeminent live-work-play destination in Raleigh,” says Clutter. “About half of the residents have migrated into the city from out-of-state due to Raleigh being a leading brain hub and innovation market that is home to 12 colleges and universities, more than 7,000 diverse companies and a significant STEM industry that has a significant operating cost discount to peer stem hubs.”
“Across the country, we are seeing new growth submarkets thrive in a post-COVID environment,” says Mikels. “Similar to South End in Charlotte or Fulton Market in Chicago, the Warehouse District and Glenwood South have quickly become widely recognized growth submarkets, where tenant activity and investor demand are very strong. At the convergence of the two, Bloc 83 was a highly sought-after investment opportunity, and will be an attractive location for an office or retail user for years to come.”