8 TRIANGLE BUSINESS JOURNAL SPACE 4Q 2017 2018 Space Awards Deals

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TRIANGLE BUSINESS JOURNAL

SPACE 4Q 2017

2018 Space Awards Deals

TOP SALES TRANSACTIONS REAL ESTATE

NORTHWOODS ASSOCIATES

FIRST PLACE: GlaxoSmithKline's 20-building, 470-acre campus at 5 Moore Dr. in RTP was sold in May for $110 million to Parmer RTP LLC, an affiliate of Los Angeles-based real estate investment firm Karlin Asset Management and a subsidiary of Parmer Innovation Partners. The 1.8 million-square-foot space has been renamed Parmer RTP. GSK will still have a presence on the property, though, as it is leasing 700,000 square feet across four buildings from Parmer in a 10-year deal.

Representing the seller in the deal was a team from CBRE, including Ben Kilgore, Brian Carr and Lee Clyburn in Raleigh and Brian Scott in New York. Representing the buyer was Karlin Real Estate, also an affiliate of Karlin Asset Management, which was founded in 2005 to manage the capital of Dr. Gary Michelson, a billionaire spinal surgeon turned inventor and philanthropist.

SECOND PLACE: The Dilweg Companies, a Durham commercial real estate investment firm, added the Regency Lakeview buildings within Cary's Regency Park corporate center to its local portfolio after closing a $61 million deal in January 2017.

Comprising 376,131 square feet of office space, the two 5-story buildings, at 9000 and 11000 Regency Parkway, were purchased from Boston-based Intercontinental Real Estate Corporation, which bought the properties in 2006 for $51 million.

Dilweg said it plans to invest about $4 million to improve the buildings' operating systems, parking, common areas and tenant amenities.

CBRE brokers Ben Kilgore in Raleigh and Patrick Gildea in Charlotte represented the seller.

THIRD PLACE: Bloomfield Hills, Michigan-based Alidade Capital purchased Regency Office Park from Regency Park Corporation in October 2017 for $53 million. Its buildings, comprising 388,000 square feet of Class A office space, are located at 2000, 8000, 3300, 3333 and 3700 Regency Pkwy. in Cary.

Ben Kilgore of CBRE|Raleigh represented the seller.

Also on the site ? and either developed or influenced by Regency Park Corp. ? are three high-end residential subdivisions, several hotels, a fitness complex, Symphony Lake and Koka Booth Amphitheatre.

Regency Office Park is not Alidade's first area investment. Along with Raleigh's Glenwood Plaza, it has acquired the Triangle Business Center in Durham and the Gateway Centre in Morrisville.

TOP SALES TRANSACTIONS LAND

FIRST PLACE: NAI Carolantic Realty, and brokers Steve Stroud and Moss Withers represented both buyer, LG 1810 Fordham Blvd LLC, and seller, Hendrick Automotive, on the purchase of 14 acres of land located at 1810 Durham-Chapel Hill Blvd. in Chapel Hill.

The $13.3 million transaction closed in January 2017. The site is the future home of a Wegmans supermarket, one of four slated for the Triangle. It is being developed by Texas-based Leon Capital Group, parent company of LG 1810 Fordham Blvd.

Hendrick Automotive has been relocating its Chapel Hill car dealerships to its Durham Southpoint Automall near The Streets at Southpoint Mall.

SECOND PLACE: With its purchase of 3.71 acres of land in downtown Durham, Alliance Residential is set to build a 342-unit, Class A apartment complex on the site of the former Crown Park Hotel.

The $10.5 million deal closed in November 2017, and demolition has already begun at 600 Willard St.

Broker Karl Hudson IV of Foundry Commercial represented the buyer in negotiating the sale from RAAJ Durham Owner LLC, a subsidiary of Chicago-based AJ Capital Partners.

When complete, the 5-story development, to be called the Broadstone Durham, will have studio, one- and two-bedroom units.

THIRD PLACE: Avison Young Represented by Avison Young brokers John Linderman and Arnold Siegmund, Duke University Health System purchased three lots at 3208 and 3224 Green Level West Road in Durham last year from the David B. Travis Charitable Remainder Unitrust and the Barbara Simmons Staten Revocable Trust.

Sale price for the 1.7 million square feet of land on 38 acres was $10.3 million.

TOP OFFICE LEASE

TRINITY CAPITAL ADVISORS

FIRST PLACE: Trinity Partners, Jones Lang LaSalle PROJECT: INC Research Perimeter Five (original name)

Originally slated for 214,000 square feet, the footprint of the six-story Perimeter Five Class A office building within Morrisville's Perimeter Park has been expanded to 258,250 thanks to a merger between the original lessee, INC Research, and inVentive Health. The combined contract research and commercial organization, now named Syneos Health, needs the additional space to accommodate all 1,500 of its employees. Plans are to move into what will be its global headquarters by the end of the year.

Construction at the 3034 Carrington Mill Blvd. site is scheduled to be complete by mid-year.

Trinity Partners was the owner of record at the time of the deal ? with broker William Allen representing their side of the deal. Financial giant Goldman Sachs bought the building, along with six others in Perimeter Park, in September.

Brokers Erika Jean McNeil and Michael Morgan of Jones Lang LaSalle represented what was, at the time, INC Research. The original lease was valued at $98 million. Leasing was handled by SVT Perimeter Five LP.

Perimeter Five features a pocket park and plaza space along with lake views and amenities that include more than seven miles of walking trails, a fitness center and closeby restaurants, shops, services and hotels.

SECOND PLACE: Foundry Commercial PROJECT/PROPERTY: Triangle 54 Jim Allaire of Foundry Commercial handled negotiations to lease 160,000 square feet of space at 86 T.W. Alexander Dr. in Research Triangle Park to Chapel Hill-based contract research organization Rho from The Keith Corporation of Charlotte. The deal was valued at $54 million.

Rho will use the space for its global headquarters, with a projected move-in date of early 2019, according

to the company. It is working with The Keith Corporation on the buildto-suit space.

THIRD PLACE: Trinity Partners, CBRE|Raleigh PROJECT/PROPERTY: One Glenwood

Represented by brokers Jason High and John Daly of CBRE|Raleigh, New York City-based co-working space WeWork cut a $51 million deal in August 2017 to occupy 82,000 square feet of space in One Glenwood, the 227,500-square-foot office building going up at the intersection of Glenwood Avenue and Hillsborough Street in downtown Raleigh.

The 10-story building is expected to open in early 2019.

Brokers William Allen and Alex Dunn of Trinity Partners represented Glenwood One Office, LLC, in lease negotiations.

TOP FLEX LEASE

AVISON YOUNG

FIRST PLACE: Avison Young, CBRE|Raleigh PROJECT/PROPERTY: City of Raleigh at One North Commerce Center

The One North Commerce Center at 5226/5230/5240 Greens Dairy Road in Raleigh will become "swing" space for state employees and equipment while renovations are underway to various state-owned buildings and agency departments in and around downtown Raleigh.

The $10 million lease covers 78,745 square feet of space at the buildings. Broker Jake Jones of Avison Young represented the city in lease negotiations; brokers Ed Pulliam and Lee Clyburn of CBRE|Raleigh represented TDC Blue III LLC, a subsidiary of The Dilweg Cos.

SECOND PLACE: NAI Carolantic Realty PROJECT/PROPERTY: 3000 Weston Pkwy., Cary

Swedish firm Hoganas Environmental Solutions is expanding its operations to the U.S. and has chosen 30,369 square feet of space at 3000 Weston Parkway in Cary for its office and water treatment laboratory.

The office opened in October 2017; the flex lease deal, negotiated by

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SPACE 4Q 2017

broker Hunt Wyche of NAI Carolantic Realty, is valued at $4.8 million.

According to the company's website, about 60 employees work at the site, which is focused on water purification and soil remediation solutions.

THIRD PLACE: Foundry Commercial, NAI Carolantic Realty PROJECT/PROPERTY: Perimeter's Edge

Lighthouse Networks LLC is another company expanding operations in the Triangle; it was slated to move in January to new quarters at 2600 Perimeter Park Dr. in Morrisville in the Perimeter's Edge building. It is leasing 25,704 square feet for 10 years in a deal valued at $3.7 million.

Headquartered in Allentown, Pennsylvania, the financial technology firm plans to add more than 50 employees to the approximately 85 currently working in Morrisville.

NAI Carolantic broker Gary Creech represented Lighthouse in the lease deal, with John Kelly and Jordan Betz of Foundry Commercial representing the building's owners.

More than 40,000 merchants ? most in the hospitality space ? use Lighthouse's equipment and credit card processing services. Customers include Bojangles, Caribou Coffee, Arby's and Bonefish Grill.

TOP WAREHOUSE LEASE

CBRE|RALEIGH

FIRST PLACE: CBRE|Raleigh PROJECT/PROPERTY: Hatchbeauty Laboratories at 3508 North TriCenter

Hatchbeauty Laboratories LLC is moving its pharmaceutical-grade manufacturing operations from its S. Alston Avenue location in Durham to a 126,000-square-foot warehouse at 3508 North TriCenter Blvd.

The Los Angeles-based company offers its cosmetic, skin care, hair care, fragrance and beauty accessories clients services ranging from R&D, product development to packaging design, along with vertically-integrated testing and manufacturing capabilities.

Broker Bryan Everett of CBRE|Raleigh represented landlord Trinity Capital in the $6.1 million deal.

SECOND PLACE: Foundry Commercial, Cushman & Wakefield

PROJECT/PROPERTY: Woodlake Center Contract assembler Flex LTD,

formerly Flextronics, announced in 2017 that it was moving to Woodlake Center, located at 1000 and 1200 Innovation Ave. in Morrisville.

The warehouse deal was valued at $5.1 million for 323,000 square feet of manufacturing and design space. Broker Jackson Rives of Foundry Commercial represented landlord Duke Realty Corporation; Cushman & Wakefield brokers Bob Vanwormer, Larry Lakins, Hunter Willard and Tim McGovern represented Flex.

THIRD PLACE: CBRE|Raleigh PROJECT/PROPERTY: 1070 Waterfield Dr.

Veritiv Corporation, a Fortune 500 company headquartered in Atlanta, will soon add operations in the Triangle with its 2017 deal to lease warehouse space in Garner.

CBRE brokers Butch Miller, AnnStewart Patterson and Austin Nagy represented Veritiv in the $4.3 million deal to lease 165,000 square feet of warehouse space at 1070 Waterfield Dr.

TOP RETAIL LEASE

FIRST PLACE: Kane Realty Corp. PROJECT/PROPERTY: Publix at Peace Street

The November 2017 announcement that Publix Super Markets would make downtown Raleigh its newest Triangle location ended speculation about what anchor tenant would be the one to occupy the new development going up at Peace and West streets.

Developers Kane Realty Corporation and Williams Realty & Building Company inked the $27 million deal for 45,600 square feet of ground-level retail space with the largest employee-owned supermarket in the nation. Broker Stephen Brown represented Kane Realty in the negotiations.

Scheduled for completion in 2020, the Peace mixed-use tower will include street-level retail space, 12 stories of luxury apartments and an adjoining parking deck. It is sited across the street from the future City of Raleigh Devereux Meadows Park.

SECOND PLACE: Plaza Associates, Inc., The Shopping Center Group PROJECT/PROPERTY: Apple store at Crabtree Valley Mall

When Apple relocated its 5,000square-foot store at Raleigh's Crabtree Valley Mall to a new spot in the Glenwood Avenue shopping emporium, almost doubling in size in the process, the move allowed the company to build a 9,800-squarefoot prototype store. Construction costs were $16.5 million, and the

lease value was $10 million. Broker Charles Lanier of Plaza

Associates Inc. represented landlord CVM Holdings, LLC in the deal; Andy Misiaveg, a broker at The Shopping Center Group, represented Apple in the negotiations.

THIRD PLACE: CBRE|Raleigh PROJECT/PROPERTY: Holly Springs Towne Center

O2 Fitness is open for business in 23,000 square feet of space at Holly Springs Towne Center at 256 Grand Hill Place in Holly Springs. The $6.2 million lease for the company's newest location was negotiated with landlord Kite Realty by CBRE|Raleigh brokers Charlie Coyne, Tiffany Barrier, Matt Larson and Cristi Greene.

BUSY BROKER AWARD: BEN STEEL, EMPIRE PROPERTIES

TBJ FILE PHOTO

Ben Steel might have skipped a year, but he hasn't skipped a beat when it comes to commercial real estate in the Triangle. For the fourth time in five years, the Empire Properties broker has earned the Busy Broker Award, based on more than 120 qualifying sale and lease transactions for 2017.

Steel is broker-in-charge of Empire Properties' brokerage services team in Raleigh, one of the largest office landlords in downtown Raleigh and downtown Durham. Between the two cities, the firm has investments in more than 40 buildings.

He also seems to be on a roll when it comes to triple-digit transactions; in 2015, Steel consummated more than 100 qualifying sale and lease deals. His numbers for 2014 and 2013 were, respectively, 98 and 91.

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