The total purchase comes in just under 560,000 sf and the transaction carries an approximate 6.5% cap rate. The seller was a client of DRA Advisors. CBRE brokers Will Yowell of the Atlanta office and Ben Kilgore of the Raleigh office repped the seller.
"This is our first buy in the Triangle Area," Paul Gaines, chief investment officer, tells GlobeSt.com. "We have been looking in the market for some time. This was an opportunity to buy a class A tower Downtown."
The San Clemente, CA-headquartered firm is bullish on the metropolitan market because of its current rebirth. "Downtown Raleigh is undergoing a revitalization; there is $2 billion going into Downtown," Gaines explains. Highlighting the revitalization is the construction of a new convention center, a Marriott hotel next to the center and a condo-office tower, he adds. In addition, Downtown has a heavy residential and retail presence. "We really see it turning into a 24-hour city."
The 30-story Wachovia Capitol Center offers a stable rent roll and long-term tenants, including Wachovia Corp. , Deloitte & Touche and PricewaterhouseCooper, Gaines tells GlobeSt.com. The office asset, which boasts a 90% occupancy rate, is also home to a number of law firms, he adds.
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