JLL closes $330M sale of brand new, trophy office development in Raleigh
Growth markets such as Raleigh continue to attract investment into new construction
RALEIGH, N.C., Jan. 5, 2022 /PRNewswire/ -- JLL's Capital Markets group announced today that it has closed the $330 million sale of Bloc 83, a brand new, trophy office development totaling 495,121 square feet in Raleigh, North Carolina. The sale of Bloc 83 represents the largest single real estate transaction in Downtown Raleigh's history.
JLL represented the seller, Heritage Properties, and procured the buyer, City Office REIT.
Completed in 2019 and 2021 respectively, Bloc 83 consists of two Class A office towers, One Glenwood and Tower II at Bloc 83, which are 79% leased and anchored by Envestnet, First Horizon Bank and McAdams. The development features high-quality construction, best-in-class tenant buildouts, street level retail space and two on-site parking garages. In addition, the towers offer amenities that are in high demand today, including a state-of-the-art fitness center, rooftop amenity terrace, locker rooms with showers, an interactive sports room with a golf simulator and expansive tenant lounges.
The properties are positioned on 3.23 acres at 1 Glenwood Ave. and 621 Hillsborough St. in Glenwood South, a growing mixed-use district of Raleigh. The location is surrounded by a large concentration of multifamily and residential uses, art museums, shops, chef-driven restaurants, and lively nightlife options. Additionally, The Origin Hotel is located on-site and is connected to the One Glenwood parking garage providing 126 rooms for tenants and their guests. Bloc 83 also benefits from its walkable location to Union Station, a $100 million multi-modal transportation facility.
The JLL Capital Markets team representing the seller was 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," Clutter said. "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," added 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."
JLL's Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group's in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. JLL has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About Heritage Properties
About City Office REIT
Contact: Kristen Murphy, JLL Senior Manager, Public Relations
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