Besides having a solid management team and a clear business model, and stellar execution, here's another reason I think HIW is a great company to own long term.
They adapt to the market. HIW has been busily selling assets in the latest real estate bull market that has delivered record volume at record prices in The Triangle. As Ole Warren Buffett says you want to buy when everyone else is trying to sell and sell when everyone is trying to buy.
Now that the market appears to be swinging more in favor of sellers, HIW is switching from a net seller of assets to a development model. This will position them well to lease and manage high quality properties over the next 5-7 year cycle.
Nice Job.
Highwoods Delays Sale of Winston-Salem Assets - CoStar Group
Thursday, November 29, 2007
Thursday, October 25, 2007
Crown West Pays $61M for former Winn Dixie Dist Center in Clayton
Deal Summary
Property: Carolinas Distribution Center (CDC)
Address: 1053 Shotwell Road in Clayton, NC
Price: $61.25 million, or about $54 per square foot
Size: four-building property totals more than 1.1 million square feet of high-end distribution and cold storage space
Year Built: 1998
Buyer: Crown West Realty, a subsidiary of New York-based Petrus Partners
Seller: Fulcra Enterprises and JER Partners.
Brokerage: Robert Cochran of Colliers Pinkard represented the seller in the transaction. Colliers Pinkard was retained to handle leasing and management at the property.
Source:Crown West Pays $61M for Carolinas Dist. Center - CoStar Group
Property: Carolinas Distribution Center (CDC)
Address: 1053 Shotwell Road in Clayton, NC
Price: $61.25 million, or about $54 per square foot
Size: four-building property totals more than 1.1 million square feet of high-end distribution and cold storage space
Year Built: 1998
Buyer: Crown West Realty, a subsidiary of New York-based Petrus Partners
Seller: Fulcra Enterprises and JER Partners.
Brokerage: Robert Cochran of Colliers Pinkard represented the seller in the transaction. Colliers Pinkard was retained to handle leasing and management at the property.
Source:Crown West Pays $61M for Carolinas Dist. Center - CoStar Group
Group Picks Up 396 Units in Raleigh Area for $11M - CoStar Group
Apartments Still Strong in Raleigh.
Recent Deal Highlights:
Property: Centennial Ridge Apartments
Address: 2450 Centennial Ridge Way, Raleigh, NC
Price: $4.5M
Units: 180
Price per unit: $25,000
Buyer: HRA Wolfpack Ridge LLC
Seller: Centennial Ridge LLC
Property: Centennial Village Apartments
Address: 2320 Crescent Creek Drive, Raleigh, NC
Price: $6.5M
Units: 216
Price per unit: $30,092
Buyer: HRA Wolfpack Ridge LLC
Seller: Centennial Village LLC
Brokerage: Drew Showfety and Ralph Jones of Greensboro-based Twin City Commercial Brokerage represented both the sellers and the buyers.
Source:
Group Picks Up 396 Units in Raleigh Area for $11M - CoStar Group
Recent Deal Highlights:
Property: Centennial Ridge Apartments
Address: 2450 Centennial Ridge Way, Raleigh, NC
Price: $4.5M
Units: 180
Price per unit: $25,000
Buyer: HRA Wolfpack Ridge LLC
Seller: Centennial Ridge LLC
Property: Centennial Village Apartments
Address: 2320 Crescent Creek Drive, Raleigh, NC
Price: $6.5M
Units: 216
Price per unit: $30,092
Buyer: HRA Wolfpack Ridge LLC
Seller: Centennial Village LLC
Brokerage: Drew Showfety and Ralph Jones of Greensboro-based Twin City Commercial Brokerage represented both the sellers and the buyers.
Source:
Group Picks Up 396 Units in Raleigh Area for $11M - CoStar Group
Wednesday, October 17, 2007
Treasurer Richard asks for More
Call it election year politics or serving the public. Richard Moore knows how to get the press.
Last week our State Treasurer and 2008 candidate for Governor asked the SEC to investigate stock sales by Countrywide's CEO. Now he's asking mortgage lenders to agree to his eight prinicples and he promises to publish the names of those who do.
Business Week picked up the story. http://www.businessweek.com/ap/financialnews/D8SAO2H80.htm along with the rest of the financial press.
Seems like this is what we do in America. Periods of propserity where everyone is getting rich so we over reach, (mortgage crisis, private equity, Enron, dot coms, S&L, tulips, you name it) followed by periods of over regulation and tightening.
Along the way fortunes and politicians are made.
What a country.
Last week our State Treasurer and 2008 candidate for Governor asked the SEC to investigate stock sales by Countrywide's CEO. Now he's asking mortgage lenders to agree to his eight prinicples and he promises to publish the names of those who do.
Business Week picked up the story. http://www.businessweek.com/ap/financialnews/D8SAO2H80.htm along with the rest of the financial press.
Seems like this is what we do in America. Periods of propserity where everyone is getting rich so we over reach, (mortgage crisis, private equity, Enron, dot coms, S&L, tulips, you name it) followed by periods of over regulation and tightening.
Along the way fortunes and politicians are made.
What a country.
Tuesday, September 18, 2007
Greenfire is On Fire
Durham is becoming a haven for former professional athletes turned real estate investors.
Anthony Dilweg who played football for Duke and the Green Bay Packers has been investing in and around Durham for a decade. Christian Laettner and Brian Davis, run a redevelopment firm called Blue Devil Ventures. And now Dewayne Washington a former Wolfpacker and longtime Pittsburg Steeler is with Greenfire Development.
Greenfire is off an running in Durham with ownership in 24 properties. They plan to invest $150M in Durham over the next 7 years. Last Friday they bought the SouthBank Headquarters at 400 W. Main Street.
Deal Highlights:
Price-$3.3M ($55/SF)
Building Size-60,000 SF
Tenant: SouthBank
Use: Office and Retail Operations
Source: N&0: newsobserver.com | Greenfire On Fire In Durham
Anthony Dilweg who played football for Duke and the Green Bay Packers has been investing in and around Durham for a decade. Christian Laettner and Brian Davis, run a redevelopment firm called Blue Devil Ventures. And now Dewayne Washington a former Wolfpacker and longtime Pittsburg Steeler is with Greenfire Development.
Greenfire is off an running in Durham with ownership in 24 properties. They plan to invest $150M in Durham over the next 7 years. Last Friday they bought the SouthBank Headquarters at 400 W. Main Street.
Deal Highlights:
Price-$3.3M ($55/SF)
Building Size-60,000 SF
Tenant: SouthBank
Use: Office and Retail Operations
Source: N&0: newsobserver.com | Greenfire On Fire In Durham
Monday, September 03, 2007
Tightening Liquidity Works its Way To Raleigh
The Triangle has enjoyed steady and stable growth over the past several years. Raleigh has been blissfully immune to wild swings in housing and jobs. With a nice base of government/university employers and a diverse pool of technology employers unemployment remains low and housing values strong. Our commercial real estate market benefited from this stability compared to the rest of the world. Buyers could purchase assets with cash flow and risk profiles in our market for less than in other larger "24 hour cities". Historically low costs of capital also fueled this fire. Now the larger macro level markets seem poised for some repricing. Will Raleigh weather this storm with the same strength and grace she exhibited during the boom?
N&O: Deals Get Harder to Finance What Raleigh Developers are Saying
Captain's Blog from Andy Serwer, Fortune Managing Editor What Wall Streets Big Shots are saying.
N&O: Deals Get Harder to Finance What Raleigh Developers are Saying
Captain's Blog from Andy Serwer, Fortune Managing Editor What Wall Streets Big Shots are saying.
Tuesday, July 10, 2007
Record Price for Office Building.
In Raleigh, NC anything over $200 gets everyone's attention.
So this record price of $1,589.00 is pretty unbelievable.
Highlights from the WSJ article:
The 33-story building at 57th Street and Park is being sold by a partnership that includes New York State Common Retirement Fund and Taconic Investment Partners LLC, which paid $158 million, or about $492 per square foot, in 2002. "It was simply time to mine a fantastic asset sale for us," said Paul Pariser, co-chief executive of Taconic.
"These trades sum up the juxtaposition of the decline of the dollar and the overflowing liquidity that is increasing the number of buyers to many markets in the U.S., and clearly New York is their preferred destination," says Douglas Harmon, senior managing director of Eastdil Secured, who brokered both the 450 Park and 660 Madison transactions.
RealEstateJournal New York Building's Record Price Shows Office Market's Strength: "New York Building's Record Price
Shows Office Market's Strength"
So this record price of $1,589.00 is pretty unbelievable.
Highlights from the WSJ article:
The 33-story building at 57th Street and Park is being sold by a partnership that includes New York State Common Retirement Fund and Taconic Investment Partners LLC, which paid $158 million, or about $492 per square foot, in 2002. "It was simply time to mine a fantastic asset sale for us," said Paul Pariser, co-chief executive of Taconic.
"These trades sum up the juxtaposition of the decline of the dollar and the overflowing liquidity that is increasing the number of buyers to many markets in the U.S., and clearly New York is their preferred destination," says Douglas Harmon, senior managing director of Eastdil Secured, who brokered both the 450 Park and 660 Madison transactions.
RealEstateJournal New York Building's Record Price Shows Office Market's Strength: "New York Building's Record Price
Shows Office Market's Strength"
Thursday, June 14, 2007
Rising Rates Won't Wreck REITs
Interesting counterpoint in Businessweek to those who have become bullish on REITS...
"Historically, the end of many positive real estate cycles has been brought about by a dramatic increase in supply that far outpaced demand. Based on our observations, and the commentary from a number of conference participants, we do not see this type of scenario currently unfolding in the U.S. "
Rising Rates Won't Wreck REITs
"Historically, the end of many positive real estate cycles has been brought about by a dramatic increase in supply that far outpaced demand. Based on our observations, and the commentary from a number of conference participants, we do not see this type of scenario currently unfolding in the U.S. "
Rising Rates Won't Wreck REITs
Tuesday, June 12, 2007
Time to Sell REITS?
The so called experts are advising against real estate - again. After pretty much missing the bull market that REITs currently enjoy the experts are now happy to start forecasting the inevitable pullback.
The Morgan Stanley REIT index gained 30% in 2006 compared to 13.6% for the S&P 500 marking the seventh straight year that REITs have outperfomed the stock market.
In the past two weeks about $2B flowed out of real estate mutual funds. This trend combined with the recent increase in the 10 year T-bill to above 5% for the first time in 11 months has some analyst rightly observing that REITs may be cooling off.
Still, the Fed has not raised rates, he has just refused to lower them. I think he his leaving himself some room to harness inflation if he has to later. I also think that after a couple of hundred years of managing the money supply, the US has figured out how to engineer softer landings.
As for local real estate. Look around, job growth is strong, housing is still very strong even though it has softened and the people keep on coming.
This market swing may be a buying opportunity for our local favorite. Highwoods Vice President of Investor Relations, Tabitha Zane said, " I don't think they are negative on Highwoods. I think they're more cautious on REITs in general."
I agree.
Sector Snap: Office REITs Fall - Forbes.com: "Sector Snap: Office REITs Fall"
The Morgan Stanley REIT index gained 30% in 2006 compared to 13.6% for the S&P 500 marking the seventh straight year that REITs have outperfomed the stock market.
In the past two weeks about $2B flowed out of real estate mutual funds. This trend combined with the recent increase in the 10 year T-bill to above 5% for the first time in 11 months has some analyst rightly observing that REITs may be cooling off.
Still, the Fed has not raised rates, he has just refused to lower them. I think he his leaving himself some room to harness inflation if he has to later. I also think that after a couple of hundred years of managing the money supply, the US has figured out how to engineer softer landings.
As for local real estate. Look around, job growth is strong, housing is still very strong even though it has softened and the people keep on coming.
This market swing may be a buying opportunity for our local favorite. Highwoods Vice President of Investor Relations, Tabitha Zane said, " I don't think they are negative on Highwoods. I think they're more cautious on REITs in general."
I agree.
Sector Snap: Office REITs Fall - Forbes.com: "Sector Snap: Office REITs Fall"
Wednesday, May 30, 2007
Rothschild Banking on Durham Revival
The American Tobacco Complex is an award winning real estate redevelopment next door to the new Durham Bulls stadium. Andy Rothschild is hoping for a similar turn around next door to the old Bulls stadium.
He has contracted to purchase six acres currently occupied by the Elkins Chrysler-Mitsubishi Dealership. Terms are not yet disclosed.
Here's Jack Hagel's coverage of the deal.
newsobserver.com Developer buying six acres near DBAP
He has contracted to purchase six acres currently occupied by the Elkins Chrysler-Mitsubishi Dealership. Terms are not yet disclosed.
Here's Jack Hagel's coverage of the deal.
newsobserver.com Developer buying six acres near DBAP
Cornerstone Buys Raleigh Marriott Crabtree Valley
Host Hotels & Resorts Sells 375-Room Hotel for $48 Million
This place has one of the best breakfast buffets around. A great place for an early morning meeting. I hope that doesn't change!!
Cornerstone Real Estate Advisers has acquired the 375-room Raleigh Marriott Crabtree Valley hotel from Host Hotels & Resorts Inc. for $48 million, or about $128,000 per key.
The six-story hotel is at 4500 Marriott Drive in Raleigh, NC, and totals about 221,200 square feet. It was constructed in 1981 and features two restaurants, a pool and fitness center, and 10,350 square feet of meeting space.
Both parties handled the deal in-house.
For more information, please see CoStar COMP #1312253.
This place has one of the best breakfast buffets around. A great place for an early morning meeting. I hope that doesn't change!!
Cornerstone Real Estate Advisers has acquired the 375-room Raleigh Marriott Crabtree Valley hotel from Host Hotels & Resorts Inc. for $48 million, or about $128,000 per key.
The six-story hotel is at 4500 Marriott Drive in Raleigh, NC, and totals about 221,200 square feet. It was constructed in 1981 and features two restaurants, a pool and fitness center, and 10,350 square feet of meeting space.
Both parties handled the deal in-house.
For more information, please see CoStar COMP #1312253.
Thursday, May 24, 2007
1031 Disaster - QI files for bankruptcy
Is it time to regulate the 1031 Qualified Intermediaries? Based on this article it may be.
UPDATED: A 1031 Cautionary Tale: Where Did the $130 Million Go? - CoStar Group:
UPDATED: A 1031 Cautionary Tale: Where Did the $130 Million Go? - CoStar Group:
Monday, April 30, 2007
Dilweg Smells Money in Mold
I once toured a distressed property with an investor who specializes in turn arounds. The stench in the old apartment building was terrible.
"Ah cat urine! That's the smell of money!", my client bellowed joyfully. He makes a nice living taking one man's nightmare and converting it into another man's gold, or however that saying goes. It's not a new business model. Sam Zell has made a fortune with a similar philiosphy and Tom Darden has raised a multi-billion dollar war chest to rehab polluted properties. Now local real estate entrepreneur Anthony Dilweg is taking on a smelly diamond in the rough, too.
It's quite a story in which the building has traded hands between Dilweg and Merisel twice over the past few years. You can read Jack Hagel's account of that saga here (newsobserver.com Second go-round nets a bargain), My interest in the story is the economics of the deal:
Building: 61,000SF
Address: 305 Gregson Drive, Durham, NC
Cost: $1.98M ($32.46/SF)
Planned renovations: $7M ($114.75/SF)
Cost to aquire and renovate: $147.25
Lets assume a cost of capital of 8% or about $13/SF. If it takes a year to deliver, the buildings cost will be about $160.25/SF.
Assume Dilweg and his investors require a 10% return on this investment would price the base rent at $16.03/SF per year. Add another $5/SF for operating expenses and viola we're at $21.03/SF rents.
AD says he can deliver it for under $22 and compete in Durham. I think he's right!
"Ah cat urine! That's the smell of money!", my client bellowed joyfully. He makes a nice living taking one man's nightmare and converting it into another man's gold, or however that saying goes. It's not a new business model. Sam Zell has made a fortune with a similar philiosphy and Tom Darden has raised a multi-billion dollar war chest to rehab polluted properties. Now local real estate entrepreneur Anthony Dilweg is taking on a smelly diamond in the rough, too.
It's quite a story in which the building has traded hands between Dilweg and Merisel twice over the past few years. You can read Jack Hagel's account of that saga here (newsobserver.com Second go-round nets a bargain), My interest in the story is the economics of the deal:
Building: 61,000SF
Address: 305 Gregson Drive, Durham, NC
Cost: $1.98M ($32.46/SF)
Planned renovations: $7M ($114.75/SF)
Cost to aquire and renovate: $147.25
Lets assume a cost of capital of 8% or about $13/SF. If it takes a year to deliver, the buildings cost will be about $160.25/SF.
Assume Dilweg and his investors require a 10% return on this investment would price the base rent at $16.03/SF per year. Add another $5/SF for operating expenses and viola we're at $21.03/SF rents.
AD says he can deliver it for under $22 and compete in Durham. I think he's right!
Wednesday, April 04, 2007
Highwoods to build 98,000SF on Weston
Pharmanet has preleased 51% of the space enabling HIW to break ground on CentreGreen Five.
Highlights:
CentreGreen Five
$15.7 million
98,000 square foot
multi-tenant Class “A” office
Weston submarket of Cary, North Carolina
Tenant: PharmaNet (NYSE:PDGI)
Highlights:
CentreGreen Five
$15.7 million
98,000 square foot
multi-tenant Class “A” office
Weston submarket of Cary, North Carolina
Tenant: PharmaNet (NYSE:PDGI)
Friday, March 30, 2007
Real Estate Stock Plays
What do Lennar, DR Horton, KB Home, Pulte and Toll Bros all have in common? Well they all hire hot babes to sell their inventory, but that's not what I'm after. They are the largest publicly traded domestic homebuilders, getting warmer, but that's not it either. My point is that since June 2000 they are all up over 400%. Bingo! That's a bull market and it appears the pendulum may be swinging back to reality for these sellers of realty.
Check out this Motley Fool article and you decide:
Real Estate's 7-Year Glitch [Fool.com] March 26, 2007: "Earnings growth has deteriorated at a quicker pace than share prices have declined. Inventory levels remain chunky. By the time the dust clears, you're going to find some pretty amazing investment opportunities..."
Check out this Motley Fool article and you decide:
Real Estate's 7-Year Glitch [Fool.com] March 26, 2007: "Earnings growth has deteriorated at a quicker pace than share prices have declined. Inventory levels remain chunky. By the time the dust clears, you're going to find some pretty amazing investment opportunities..."
Wednesday, March 14, 2007
Highwoods Sells Five More Triangle Buildings
About a year ago Highwoods published a goal to sell $500M of "non-core" assets. Their plan seems pretty smart, sell older fully depreciated buildings that are commanding a premium in this real estate bull market and reinvest the proceeds in new development.
It's working so well they have adjusted their sales goal up to at least $700M by the end of December 2007.
Investors spent $547M on Triangle offices in 2006, which is more than twice the 10-year average of $237M. That's the definition of a hot market.
Grubb&EllisThomas Linderman Graham is pleased to have helped them get $34.2M closer to their goal with this transaction.
Highlights:
Assets: 5 North Durham Office Buildings at Roxboro and Duke Street
Tenants: Duke Universtiy Health System and Qualex
Occupancy: 99%
Seller: Highwoods
Buyer: Triple Net Properties
Price: $34.2M or $124/SF
Total Square Feet: 276,329
Read Jack Hagel's N&O coverage here: newsobserver.com Five Durham buildings sold
It's working so well they have adjusted their sales goal up to at least $700M by the end of December 2007.
Investors spent $547M on Triangle offices in 2006, which is more than twice the 10-year average of $237M. That's the definition of a hot market.
Grubb&EllisThomas Linderman Graham is pleased to have helped them get $34.2M closer to their goal with this transaction.
Highlights:
Assets: 5 North Durham Office Buildings at Roxboro and Duke Street
Tenants: Duke Universtiy Health System and Qualex
Occupancy: 99%
Seller: Highwoods
Buyer: Triple Net Properties
Price: $34.2M or $124/SF
Total Square Feet: 276,329
Read Jack Hagel's N&O coverage here: newsobserver.com Five Durham buildings sold
Thursday, March 08, 2007
March Madness and Global Liquidity
Here's some insight on global liquidity from Wachovia's senior economist Mark Vitner. I think it is especially timely considering the recent stock market sell off and the ever growing amount of capital pursuing real estate in our market. Good stuff for between game breaks.
GO PACK!
http://www.wachovia.com/ws/econ/view/0,,3653,00.pdf
GO PACK!
http://www.wachovia.com/ws/econ/view/0,,3653,00.pdf
Monday, March 05, 2007
Highwoods Sells Apartments for $45M
Today, Highwoods announced a sale of a 332 unit complex in Cary. Highwoods will make $6.1M after loans and other obligations are settled.
Deal Summary:
Name: Weston Lakeside
Location: Cary, NC
Buyer: American Realty Advisors
Seller: Highwoods and Crosland
Price: $45M
Units: 332
$/unit: $135,542
Last year investors spent $1.1B on triangle apartments.
Source: N&O and Forbes
Highwoods Sells Property for $45M - Forbes.com
Deal Summary:
Name: Weston Lakeside
Location: Cary, NC
Buyer: American Realty Advisors
Seller: Highwoods and Crosland
Price: $45M
Units: 332
$/unit: $135,542
Last year investors spent $1.1B on triangle apartments.
Source: N&O and Forbes
Highwoods Sells Property for $45M - Forbes.com
Ohio firm expands Raleigh presence
Developers Diversified bought 12 Triangle area shopping centers covering over 900,000 square feet as part of a larger $6.2B acquistion.
The deal enlarges the company's Triangle portfolio to about 2.5 million square feet.
Investors spent $211 million on Triangle retail real estate in 2006 -- 11 percent above the 10-year annual average.
These centers traded in the deal:
Circuit City, Cary, 27,891 square feet
Mill Pond Village, Cary, 84,364
Meadowmont Village Center, Chapel Hill, 132,857
Clayton Corners, Clayton, 125,653
South Square, Durham, 89,622
Sexton Commons, Fuquay-Varina, 49,097
Capital Crossing, Raleigh, 83,248
Eckerd -- Perry Creek, Raleigh, 10,908
Wakefield Crossing, Raleigh, 75,927
Alexander Place, Raleigh, 143,073
Chatham Crossing, Siler City, 32,000
Capital Plaza, Wake Forest, 46,793
Read Jack Hagels story here: newsobserver.com 12 shopping centers have a new owner
The deal enlarges the company's Triangle portfolio to about 2.5 million square feet.
Investors spent $211 million on Triangle retail real estate in 2006 -- 11 percent above the 10-year annual average.
These centers traded in the deal:
Circuit City, Cary, 27,891 square feet
Mill Pond Village, Cary, 84,364
Meadowmont Village Center, Chapel Hill, 132,857
Clayton Corners, Clayton, 125,653
South Square, Durham, 89,622
Sexton Commons, Fuquay-Varina, 49,097
Capital Crossing, Raleigh, 83,248
Eckerd -- Perry Creek, Raleigh, 10,908
Wakefield Crossing, Raleigh, 75,927
Alexander Place, Raleigh, 143,073
Chatham Crossing, Siler City, 32,000
Capital Plaza, Wake Forest, 46,793
Read Jack Hagels story here: newsobserver.com 12 shopping centers have a new owner
Thursday, February 08, 2007
Walmart Saves Taxes by Paying Rent To Itself
From the you can't make this up department...
In a shrewd move Walmart has set up REITs to own their real estate. According the WSJ, "here's how it works: One Wal-Mart subsidiary pays the rent to a real-estate investment trust, or REIT, which is entitled to a tax break if it pays its profits out in dividends. The REIT is 99%-owned by another Wal-Mart subsidiary, which receives the REIT's dividends tax-free. And Wal-Mart gets to deduct the rent from state taxes as a business expense, even though the money has stayed within the company."
The Great State of NC caught on to this and ordered Walmart to pay $33M in back taxes. Walmart paid up but is sueing for a refund.
Maybe if they used the dough to play the state "education lottery" or agreed to contibute to the Google bribery campaign, NC would let it slide.
You can't make this stuff up. Read the entire story at: http://www.realestatejournal.com/reits/20070205-drucker.html
In a shrewd move Walmart has set up REITs to own their real estate. According the WSJ, "here's how it works: One Wal-Mart subsidiary pays the rent to a real-estate investment trust, or REIT, which is entitled to a tax break if it pays its profits out in dividends. The REIT is 99%-owned by another Wal-Mart subsidiary, which receives the REIT's dividends tax-free. And Wal-Mart gets to deduct the rent from state taxes as a business expense, even though the money has stayed within the company."
The Great State of NC caught on to this and ordered Walmart to pay $33M in back taxes. Walmart paid up but is sueing for a refund.
Maybe if they used the dough to play the state "education lottery" or agreed to contibute to the Google bribery campaign, NC would let it slide.
You can't make this stuff up. Read the entire story at: http://www.realestatejournal.com/reits/20070205-drucker.html
Wachovia Tower Sold for Record $153.4M
Argus Realty Investors of San Clemente, Calif., paid New York-based DRA Advisors $278 per square foot for the Wachovia Capitol Center in downtown Raleigh on Jan 31 2007.
This record sale signalled that the record setting commercial real estate activity of 2004, 2005 and 2006 is far from over. The previous record was set in 2004, when Regency Centers paid $120 million for Raleigh's Cameron Village shopping center.
A great bullish signal for our market, but average cap rates here 8% are still higher than the national average of 7.1%. That tells me that capital is still going to flow here for the the near future.
Highlights:
$153.4M
550,979 SF
$278/SF
6.5% cap rate
10% vacancy
61% above average class A office sale in 2006
750 space parking deck
Read Jack Hagel's coverage here:
newsobserver.com Sale of Wachovia tower sets record
This record sale signalled that the record setting commercial real estate activity of 2004, 2005 and 2006 is far from over. The previous record was set in 2004, when Regency Centers paid $120 million for Raleigh's Cameron Village shopping center.
A great bullish signal for our market, but average cap rates here 8% are still higher than the national average of 7.1%. That tells me that capital is still going to flow here for the the near future.
Highlights:
$153.4M
550,979 SF
$278/SF
6.5% cap rate
10% vacancy
61% above average class A office sale in 2006
750 space parking deck
Read Jack Hagel's coverage here:
newsobserver.com Sale of Wachovia tower sets record
Tuesday, January 16, 2007
Triangle Commercial Real Estate tops $2B in 2006
The commercial real estate business in 2005 was hot. In 2006 it was better.
Two Billion dollars. That's almost half the GDP of Bosnia.
Read about the sale that helped set this alltime record: newsobserver.com Property sale sets 3 records
Two Billion dollars. That's almost half the GDP of Bosnia.
Read about the sale that helped set this alltime record: newsobserver.com Property sale sets 3 records
New Loop Links RTP to Knightdale
In classic fashion the traffic demand was spilling over into the new capacity. Radio stations in the morning reported a delay around the new ramps as traffic backed up to christen the new $114M road. At 11:13am, 9.3 new miles opened and the North became seamlessly connected to the East.
More openings scheduled for 2007:
- another five-mile stretch will open this spring connecting I-40 to N.C. 54
- and I-40 through RTP to N.C. 55 by summer
Read the N&O coverage here: newsobserver.com Stretch of Outer Loop opens with fanfare
More openings scheduled for 2007:
- another five-mile stretch will open this spring connecting I-40 to N.C. 54
- and I-40 through RTP to N.C. 55 by summer
Read the N&O coverage here: newsobserver.com Stretch of Outer Loop opens with fanfare
Sunday, January 14, 2007
Knightdale Set for Population Explosion
What once was a sleepy bedroom community east of Raleigh is now transforming into a regional shopping mecca and a prime target for developers.
The arrival of the I-540 outer loop along with the availability of large tracts of land and few natural boundaries that would limit growth makes Knightdale very attractive.
Read this N&O front page article: newsobserver.com Knightdale reaps riches
The arrival of the I-540 outer loop along with the availability of large tracts of land and few natural boundaries that would limit growth makes Knightdale very attractive.
Read this N&O front page article: newsobserver.com Knightdale reaps riches
Monday, January 01, 2007
Fidelity to Give RTP Huge Boost and Vice Versa
Among the biggest stories of 2006 is Fidelity's announcement to build a campus on 268 acres in RTP. The Research Triangle Foundation estimates the company could eventually bring 4,000 jobs and as much as $300M in investments.
NC Economic Developers offered an aggressive package to Fidelity to win the business. Highlights include:
-Job Development Investment Grant valued at $54.6 million, the largest JDIG ever offered by the state;
-$2 million grant from the state's One North Carolina Fund;
-$3.88 million in corporate sales tax rebates;
-$4 million training and screening program;
-$3.24 million Wake County tax grant;
-$1 million in infrastructure improvements.
Read the TBJ article at: Fidelity picks RTP for 2,000 jobs - Triangle Business Journal:
NC Economic Developers offered an aggressive package to Fidelity to win the business. Highlights include:
-Job Development Investment Grant valued at $54.6 million, the largest JDIG ever offered by the state;
-$2 million grant from the state's One North Carolina Fund;
-$3.88 million in corporate sales tax rebates;
-$4 million training and screening program;
-$3.24 million Wake County tax grant;
-$1 million in infrastructure improvements.
Read the TBJ article at: Fidelity picks RTP for 2,000 jobs - Triangle Business Journal:
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