Patient Capital Usually Wins

Highwoods has only purchased one building this year according to the N&O and that one is in Richmond. Locally they are in a disposition mode. It makes sense though as many of their local assets are fully stablized mature buildings. Now the REIT is seeking higher returns by deploying capital into the strength of Raleigh's market in the form of new development.

Read Hagels' article on the subject here. newsobserver.com REIT patient for value

Raleigh's $2B Facelift Raises All Boats

Is the time right to buy downtown? Many long-time landowners are finding that it is definitely the right time to sell.

Highlights:
* Raleigh Land Co. paid $1.42 million for a pair of three-story buildings totaling 10,000 square feet on 0.08 of an acre at the corner of Martin and Wilmington streets. The price is almost 16 times what seller 20 Market Street Plaza paid for the properties in the early 1980s, according to Wake County records.

* Herndon & Herndon Enterprises of Raleigh paid $535,000 for a 2,072-square-foot building on 0.12 of an acre at 101 S. Blount St, according to a deed filed last month.

Read Jack Hagel's entire article on recent downtown sales.
newsobserver.com Downtown Raleigh sale shows price jump

Dix Land still under Debate

Grand urban park or more mixed use development?

The 300-acre site near downtown Raleigh is the subject of much debate.

What do you think?

newsobserver.com Proposed Dix-NCSU land swap sets up a tussle

Highwoods Sells 3 Parks for $16.5M in Greensboro/Winston-Salem - CoStar Group

The Southeast's largest developer and owner of commercial real estate announces new activity on Greensboro. The REIT has sold 3 flex buildings at just under $42 per SF. They will plow $5.5M of the proceeds right back in to the area in the form of 120,000SF distribution facility.

Ed Fritsch sites the Dell and FedEx facilities as positive signs in the region.

Read the presser: Highwoods Sells 3 Parks for $16.5M in Greensboro/Winston-Salem - CoStar Group

Another Outside Investor Buys Big in Raleigh

newsobserver.com Sun Life of Canada buys N. Raleigh office buildings: "Sun Life Assurance Co. of Canada paid a California investment group $34.7 million for five North Raleigh office buildings -- the latest in this year's parade of Triangle office property sales"

Castle & Cooke took advantage of the strong momentum in the Raleigh market and cashed out of 170,000 square feet.

Deal Highlights as reported by the N&O Include:

- $21.9 million, or $129 per square foot, for the 170,000-square-foot Landmark Center at 4601 Six Forks Road.
-88% occupancy

-$12.8 million, or $103 per square foot, for four buildings totaling about 124,350 square feet on Six Forks Road at Horizon Drive.
-83% occupancy

Did I mention I love Raleigh.

Downtown Sheraton Sold for $42M

Hotel Industry News :: Hotel News Resource: "'At a price of approximately $118,000 per key including approximately $5 million in upgrades required by Starwood as a result of the acquisition, we felt it was a very attractive opportunity "

Innkeepers USA Trust, a publicly traded hotel REIT, announced today that it has acquired a 49% interest in the 355-room Sheraton Capital Hotel in Raleigh.

Deal highlights include:
$8.5M cash funded from an unsecured line of credit
$33.5M in debt at LIBOR plus 285 basis points that matures in Nov 09

I love Raleigh.

Highwoods Hits All-time High

newsobserver.com Deal shows hunger for REITs:

As mentioned earlier here. The recent private equity interest in commercial real estate is a very bullish signal for our local Triangle market, which by national standards is seen as a value. Investors are attracted to our competitive cap rates and they enjoy better pricing per square foot than in most tier one markets.

"'The fact that Equity Office could be taken private means no REIT is safe,' said Morningstar analyst Arthur Oduma. 'That obviously excites investors who own REITs.'"

More on the Blackstone Deal

RealEstateJournal What Blackstone Bet Means For Real-Estate Investors:

Personal finance guru Clark Howard is advising to steer clear of REITs because they've become too pricey, but big private equity begs to differ. They obviously think there is more upside in at least one giant office REIT.

"despite a 29% increase in REIT shares so far this year. It also dispels the theory that some real-estate investment trusts are too big to buy out, said Keven Lindemann, real-estate group director at SNL Financial, a research outfit in Charlottesville, Va. "

This group appears to know what they are doing...

"Blackstone's office-sector buying spree is in some respects similar to one it went on in the hotel industry from May 2004 to this February. Blackstone bought into that industry's recovery, taking $8 billion of public hotel companies ($15 billion including debt) private and wagering that revenue per available room and occupancy would rise. So far, the investment has paid off. The hotel industry set a record for profitability in 2005 and is expected to do so again each year through 2008, according to projections by PricewaterhouseCoopers."

I expect this news is making shareholders of Highwoods smile.

Blackstone Deal Bodes well for Highwoods

Update -- Zell Sells For $36B - Forbes.com: "(The) transaction supports UBS' Real Estate Investment Trust thesis that current valuations seem reasonable given direct bid for real estate and relative ease of purchasing REITs at perceived discounts versus aggregating portfolios piecemeal, particularly given leverage in these types of transactions," James Feldman, an analyst at UBS Investment Research, said in a report.

Beta Center offices sell for $17.3 million

newsobserver.com Beta Center offices sell for $17.3 million: "The David Associates of West Palm Beach, Fla., paid $17.3 million, or $112 per square foot, for the Beta Center offices, at 5151 and 5171 Glenwood Ave. in northwest Raleigh."

Raleigh, Cary, Durham in Another Top 10

bizjournals: Rank for all Sunbelt metros

Yet another publication, yet another accolade. This time it's the South's Comfiest Cities.

Local Folks Weigh in on Boone Redo

newsobserver.com Neighbors speak on Boone parcel:

"I'm either going to have to leave Hillsborough or retire"

AAC has big plans for this Raleigh suburb. I think it will be interesting to see if they over do it.

Raleigh Ready for Roundabouts?

newsobserver.com Raleigh proposal calls for roundabouts

"We want it [Hillsborough Street] to be a place to drive to, not to drive through"

It will be interesting to see if this remedy works for Hillsborough Street. I think we all agree it needs to be improved. Some think this is a mistake, and that the streets should be widened and pedestrian traffic shifted to tunnels and bridges. What do you think?

Raleigh Real Estate Among the Best in the USA

A recent study predicts that Raleigh and Durham will post one of the nation's top five home appreciation rates over the next 12 months.
Read the TBJ article.

TICs Proving Effective for Investors

The Business Journal: TIC tact: Alternate ownership structure growing in appeal - 2006-03-06

TICs or tenancy-in-common deals are providing investors with some tax benefits of real estate ownership and the opportunity to participate in a professionally managed asset.

Cary Homeowners have enough of HOA

newsobserver.com Growth:

Power to the people brother...Cary has a reputation for attracting folks who like these picky HOAs...good to see that a common sense majority is starting to prevail...

"Just ask the people of the Parkway subdivision in west Cary. Earlier this month, a band of insurgents staged a coup d'etat and purged the 1,682-home association's entire board."

Little Big Man does it again!!

Venture Capital - bizjournals.com:

John McConnell continues to proove why he is one if my business heroes...as he builds and sells A4 to..."Allscripts for $272 million in a cash-stock deal. In 1999, the company was valued at $12 million."

Panthers Produce Payday

General - bizjournals.com:

Interesting article on the value of the Carolina Panthers football team...

"'This NFL merry-go-round is like nothing I've ever seen,' he says. 'It defies logic. Every time you think it can't go higher, it does. Having an NFL franchise is a precious commodity, and the values reflect that.' "

WakeMed Buys Highwoods Building

newsobserver.com Business:

3261 Atlantic Ave sells for $5.6M (63,797 square feet)

"The 20-year-old building was 57 percent leased at the end of 2005. It is likely to be occupied by the Raleigh-based hospital system."

Craig Davis Plans 130 acre development in N Raleigh

newsobserver.com North Carolina

CDP and Rex Healthcare announce plans for 200,000 square feet of mixed use.

Preserve at Brier Creek Sells for $25.7M

Mid-America acquires apartment community - 2006-01-23

Investors continue the rush to NC residential real estate.

Commercial Real Estate Off to the Races in 2006

Investors cash in with $100M sale - Triangle - MSNBC.com

Combine this sale with the $251M Parker Lincoln deal and the Triangle is well on it's way to another record year in 2006.

Record $251M Size Deal in NC

CoStar Group, Inc. - News Article

New York based group acquires the Parker-Lincoln Portfolio in the largest commercial real estate transaction in NC since Highwoods went public.

Friendler Development Regs in Raleigh

Construction - bizjournals.com

Land developers. Come on down!!

RealEstateJournal | Landlord Has No Regrets After Year of Investing

RealEstateJournal Landlord Has No Regrets After Year of Investing

Good article on a techy who is diversifying into real estate...