5 Months After Opening, Chapel Hill Office Building Fetches Hefty Price Tag

The string of high-dollar sales in the Triangle’s hot office market has continued into the new year with the $19.9 million sale of a new office building in Chapel Hill.

The developers and capital partners behind the new Station at East 54 project have sold the 48,000-square-foot building to Durham investor Mattie Equity.

The deal is valued at more than $416 per square foot, making it one of the priciest in the Triangle in recent years. The new Midtown Plaza office building in Raleigh’s North Hills sold less than a year ago for $385 per square foot, while Durham's Hock Plaza I building sold at the end of 2017 for $434 per square foot.

East West Partners developed the Station at East 54 building, with Northridge Capital serving as a capital partner. For East West Partners Development Director Lee Perry, the sale indicates the demand for office in Chapel Hill, despite the market’s reputation as being a difficult place to develop.

“If you can get it built, it leases up,” Perry says. “There’s investor demand for it. I think it speaks to the strength of the submarket here.”

HFF broker Scot Humphrey, who represented the sellers in the deal, says it shows that prominent office sales are approaching the price tags seen in comparable markets, such as Charlotte and Nashville.

Rents at the building are at about $36.50 per square foot, near the top of the Triangle market, he says. The deal could also grease the wheels for other high-price transactions in the region. “It will hopefully make things easier for office developers to rationalize developing new buildings, knowing they can exit at a price above $400 per square foot,” Humphrey says.

Efforts to jump-start Station at East 54 date back to 2014, when the town of Chapel Hill issued a request for proposals seeking a partner to redevelop a fire station site on Hamilton Road.

Once the town selected East West Partners as its partner, the fire station was demolished to make way for the office building and a new three-bay fire station.

Under the terms of the public-private partnership, East West Partners agreed to contribute $1.8 million to the town to help with construction of the new fire station, while the town provided the land for the office building development.

The project opened in September and is located two miles from the UNC-Chapel Hill campus. The building, which rises 6 stories, counting two levels of parking, is already fully leased to two tenants: TrueBridge Capital Partners and coworking provider Spaces, a subsidiary of Regus. With 33,000 square feet, Spaces occupies a majority of the building.

The sale also shows that investors are willing to pay a premium, even when a coworking provider occupies a significant portion of a building. As Spaces and competitor WeWork have risen to prominence, developers and analysts have raised questions about how the coworking providers will fair when the economy hits a rough patch. In the case of the Station at East 54, Spaces' large presence in the building didn't stop an investor from paying top dollar.

The project overlooks the UNC Finley Golf Course and is next to the walkable East 54 mixed-use development, which includes retail shops, apartments, luxury condos and a 130-room Aloft Hotel. East West Partners also developed East 54 and still owns the office and retail components of the development.

The buyer, Mattie Equity, lists Kathleen Schneider as its manager. Schneider has been behind a number of real estate investment deals throughout the Triangle, including the development of the Indigo Apartments on Page Road, which sold for $59 million at the end of 2018.

In the Station at East 54 deal, the HFF investment advisory team of Humphrey, Ryan Clutter, Chris Lingerfelt and Zack Drozda represented the sellers.

CBRE|Raleigh Announces Ground Breaking and First Tenants at Upcoming Crabtree Terrace in Raleigh, NC

CBRE|Raleigh is pleased to announce the groundbreaking and first leases for the upcoming Crabtree Terrace mixed-use site in Raleigh, NC. Co-working company Spaces has signed a lease for 31,794 square feet of office space and a high-end, large format restaurant has signed a lease for approximately 12,500 square feet of ground floor retail space. Longleaf Law Partners has also signed a lease for 8,000 square feet of office space in the project. This marks the fifth location for Spaces in the Triangle. Longleaf will relocate from its existing office which is currently located in the Gateway Access building off Lake Boone Trail.

Crabtree Terrace is a mixed-use project that is being developed by East West Partners. The site will contain 145,000 square feet class A office space and 28,000 square feet luxury ground floor retail. Crabtree Terrace will sit adjacent to a luxury hotel and conference center that will be home to a rooftop bar and full-service restaurant. Construction on the project is now underway with an expected delivery of Q4 2019.

“We are thrilled to be underway with this exciting new mixed-use project. The Crabtree Valley submarket always has been and continues to be one of the Triangle’s strongest performing commercial districts. We have a great deal of market interest in the project as is evidenced by the early leasing activity to date. We expect to build on that momentum over the coming months,” said Lee Perry, development director with East West Partners.

The project team for Crabtree Terrace includes Gensler and Kimley Horn leading the design, with Brasfield and Gorrie serving as the General Contractor.

Citizens Bank is providing a construction loan for the project, and equity financing is being provided by Northridge Capital, LLC of Washington, D.C. and SilverCap Partners of Charlotte, NC.  This is East West Partners’ third development in partnership with Northridge Capital and second with SilverCap Partners.

Crabtree Terrace is located at the intersection of Creedmoor Road and Glenwood Avenue, across the street from Crabtree Valley Mall. The site is expected to attract top tenants in this bustling, tight submarket that had a Q2 2018 vacancy rate of 3.8 percent for class A office space.

CBRE|Raleigh’s Advisory & Transaction Services|Investor Leasing group and Retail Services group are handling the office and retail leasing components of the project.

 

Northridge Capital and Insite Properties Break Ground on The Refinery in Charlotte, NC

WASHINGTON, Nov. 13, 2017 -- Northridge Capital, LLC, is pleased to announce its partnership with Charlotte, NC-based developer Insite Properties and ground-breaking on The Refinery, a 107,000 square foot Class-A creative office and retail project located in the dynamic Midtown submarket at 1213 West Morehead Street in Charlotte, NC.  As a gateway to the Freemore West neighborhood and directly across from the I-77 off-ramp, the Refinery will revive a highly visible site walkable to some of the City's most popular restaurants.

Featuring smart building technology, the "industrial modern" building is designed for companies seeking a creative and inspiring environment.  The Refinery will have a total of five floors with four upper levels of 22,500 square-foot efficient floorplates over first-floor retail.  The first floor will have 16' ceiling heights complimenting office floor heights of 10' – 14' with floor-to-ceiling glass.  The Refinery will offer panoramic views of the Queen City's skyline and a rooftop amenity that will provide additional outdoor meeting/gathering space for tenants, visitors and guests with vast views of the Queen City, including Bank of America Stadium. 

The Refinery's location at the Morehead Street exit off I-77 is in the highly sought-after South End/Midtown submarket and is an easy walk to a number of restaurants in the trendy Freemore West neighborhood such as Pinky's West Side Grill, Savor Cafe and Rhino Market, popular bars, retail and exercise concepts.  It is a true "live/work/play neighborhood" less than half a mile from Uptown Charlotte and a short walk to Irwin Creek and Stewart Creek Greenways. The Refinery will sit adjacent to a 287-unit Class A multi-family project currently under construction.  The Refinery will include free parking in a 350-space parking deck built for tenants and visitors.  It will also provide electric vehicle charging stations, interior bike storage, private showers and locker rooms on the first floor, and a tenant friendly gathering space in the main lobby.

"We are delighted to partner with Insite on development of The Refinery project," said David Jackson, President of Northridge Capital. "This venture represents an expansion of our ongoing relationship with Insite and our commitment to this dynamic submarket."  Northridge and its investors already own the Grinnell Water Works Building two blocks west of The Refinery site, which it purchased last year from Insite and which Insite continues to lease and manage.  Northridge sourced investor equity through its relationship with Cap Corp Investment Company of Kuwait. Cap Corp Investment Company was founded in 2008 as a Shariah-Compliant Kuwaiti Closed Shareholding Company, and focuses on investment products ranging from asset management, financial markets, corporate finance, and private equity to real estate development.

David Etemadi, VP, Acquisitions at Northridge, added "We are thrilled to close on our financing and immediately begin construction on a Project that takes design cues from the rich historic and creative feel of Freemore West with state-of-the-art, Class A office amenities.  Furthermore, with a Class A direct office vacancy rate below 5% in Midtown, we believe there is demand for this much-needed product."

"We are pleased to start work on The Refinery, bringing much needed creative Class A office and retail space to the rapidly developing West Morehead corridor," said Jay Blanton, Founder and Managing Principal of Insite Properties. "The Refinery will offer an adaptive re-use feel with the features and amenities of brand new construction that will both redefine and blend into the diverse and ever-changing face of West Morehead and further solidify it as a new hot spot in the Queen City."

JLL's Barry Fabyan and Charley Leavitt are representing the development team in office leasing execution; John Hadleyof The Nichols Company is responsible for first-floor retail leasing.  BB+M Architecture has been tapped as the architect, LandDesign is the civil engineer and Edifice Construction is the general contractor.  The Refinery is slated to deliver in fall 2018

About Northridge Capital
Northridge Capital, LLC, based in Washington DC since its founding in 1997, is a real estate private equity firm focused on representing international high-net worth families and institutions. As an independent real estate asset management firm, Northridge Capital has successfully generated superior risk-adjusted returns to investors since its inception, demonstrating the ability to acquire, manage and sell real estate assets across a wide variety of property types and geographic areas. On behalf of investors, the company has invested in more than 50 assets, with a combined value of $962 million. The current portfolio has a value of $528 million.

About Insite Properties
Insite Properties, LLC, founded in 2001, is a full-service commercial real estate firm based in Charlotte, NC with additional offices in Charlottesville, Va. Insite is regionally focused on professional and medical office development, acquisition, leasing and properties management opportunities throughout the southeastern United States. Insite acquires and develops properties directly or with a variety of joint venture partners in an effort to be involved in quality projects that add to the communities within which they exist and provide market risk adjusted returns for itself and its investment partners.

Northridge Capital Announces Groundbreaking for W Aspen

Northridge Capital, LLC, owner of the Sky Hotel in Aspen, Colorado, in partnership with local developer Sarpa Development, is pleased to announce that it closed last week on construction financing for its redevelopment of the property, prominently located at the base of Aspen Mountain in the heart of town, obtained construction permits from the City of Aspen, and broke ground on the project on Friday, May 26.  Northridge selected Marriott International’s W Hotels as operator for the new hotel and residences last year.   An entity owned by one or more funds managed, directly or indirectly, by Fortress Investment Group LLC (NYSE: FIG) is providing construction financing, and Haselden Construction of Denver is the general contractor.

W Aspen and The Sky Residences at W Aspen, which is slated to open for the 2018-19 winter ski season, will be the first alpine escape in North America from W Hotels Worldwide.

W Aspen is being designed by the award-winning firms of Rowland+Broughton Architecture of Aspen and Nemaworkshop of New York City, in partnership with W’s in-house design team. Locally inspired, this modern-day mountain chalet will celebrate the spirit of Aspen, offering 88 guestrooms, including six suites, and 11 W-branded fractional residences.  An oversized split-level Living Room, the brand’s alternative to the staid hotel lobby, reimagines the traditional hotel dining scene with a modern approach to dynamic cocktails and cuisine. To complete the experience of this incomparable location, the hotel will feature a 1,600 square foot outdoor patio and a 12,000 square foot rooftop bar and pool, overlooking Aspen Mountain and creating the ultimate experience for après-ski and warm-weather events.

A full-service ski shop will provide guests with equipment rentals and storage capabilities, while an 1,100 square foot FIT®, the W brand’s modern gym concept, will aid travellers in staying in shape on and off the slopes. With more than 1,600 square feet of event and meeting space, W Aspen is sure to become an attraction for spectacular events and high energy meetings at the base of Aspen Mountain.

The Sky Residences at W Aspen will also provide a unique opportunity to call both W and Aspen home. The Sky Residences at W Aspen will offer the marketplace the newest ski-in residential inventory, boasting the first slope side address in downtown Aspen since the opening of the Residences at The Little Nell.

The Sky Residences at W Aspen will be a unique offering of only 11 fractional residences. Each Residence is located on the third or fourth floors of W Aspen, with commanding views of Aspen Mountain and the Aspen area. Owners will enjoy all the services and amenities of the W Aspen and will also have their own private rooftop deck with a pool and gathering areas.

About Northridge Capital, LLC

Northridge Capital, LLC, is an independent real estate asset private equity firm that has invested since its founding in 1997 in nearly 50 assets on behalf of its investors, with a combined acquisition value of approximately $1 billion. Based in Washington, D.C., the company focuses on generating superior risk-adjusted returns for international high net-worth individuals and institutions. It acquires, manages, and sells real estate assets across a wide variety of property types and geographic areas. For more information, visit www.northridgecapital.com<http://www.northridgecapital.com/>.

About Fortress Investment Group

Fortress Investment Group LLC (NYSE: FIG) is a leading, highly diversified global investment firm with $70.2 billion in assets under management as of March 31, 2017. Founded in 1998, Fortress manages assets on behalf of over 1,800 institutional clients and private investors worldwide across a range of credit and real estate, private equity and traditional asset management strategies. For more information, visit www.fortress.com<http://www.fortress.com/>.

 

Northridge Capital, LLC and East West Partners Close on Sale of Liberty Warehouse in Durham, NC

Local real estate private equity firm, Northridge Capital, LLC and its partner, Chapel Hill-based East West Partners, is pleased to announce the closing of its sale on May 17 of the Liberty Warehouse project in the Central Park neighborhood of downtown Durham, North Carolina.  A new landmark in downtown Durham, Liberty Warehouse includes 247 Class A multi-family apartments and 24,000 square feet of retail space on Foster Street across from the Durham Farmer’s Market.  The old Liberty Warehouse was demolished in the fall of 2014, with the historic brick facades along Rigsbee Avenue and Central Park being saved and incorporated into the new building.  Many of the interior elements of the building were also preserved and have been re-purposed in the new building. 

The community was built on a historic site that used to serve as a tobacco auction warehouse. As part of a downtown revitalization process, the two buildings preserved some of the architectural elements of the old Liberty Warehouse, such as the historic brick facades along Rigsbee Avenue and Central Park. Fifth Third Bank provided a loan for the redevelopment project.

“We re-imagined the warehouse space as a highly amenitized, Class A+ property built to attain a LEED certification. Liberty Warehouse takes full advantage of its central location to Duke, the Durham Innovation District and Research Triangle Park with a walk score of 90 and bike score of 65,” said East West Partners Project Manager Ben Perry, in a prepared statement.

Equity for the project was provided by Northridge Capital, LLC.  Northridge Capital is a private, independent commercial real estate private equity firm located in Washington, DC and focused on providing services to offshore high-net-worth family groups and institutions.  David Jackson, President of Northridge Capital, said “We are delighted with the very successful outcome of this project, for us and our investors, and for the local Durham community.  Liberty Warehouse represents exactly what we and our investors are looking for, a unique redevelopment opportunity in a dynamic market like downtown Durham with a prominent local developer.  We look forward to continuing to work with East-West Partners on other projects, and hope to be able to find other opportunities to participate in the revitalization of downtown Durham.” 

About Northridge Capital, LLC

Northridge Capital, LLC, is an independent real estate asset private equity firm that has invested since its founding in 1997 in nearly 50 assets on behalf of its investors, with a combined acquisition value of approximately $1 billion. Based in Washington, D.C., the company focuses on generating superior risk-adjusted returns for international high net-worth individuals and institutions. It acquires, manages, and sells real estate assets across a wide variety of property types and geographic areas. For more information, visit www.northridgecapital.com<http://www.northridgecapital.com/>.

Check out this new office building planned near Open Kitchen restaurant on West Morehead

Check out this new office building planned near Open Kitchen restaurant on West Morehead

A stalled office building project on West Morehead Street has new life, with Insite Properties picking up plans for the building.Called The Refinery, the five-story building at 1213 West Morehead will total 105,000 square feet. It’s expected to be complete in fall 2018. The site is located between the Open Kitchen restaurant and I-77.

Industrial building-turned-creative office space west of uptown sells for $11.8 million

Industrial building-turned-creative office space west of uptown sells for $11.8 million

The Grinnell Water Works building on West Morehead Street has been sold for $11.8 million, real estate brokers said Thursday.The brick-and-beam building, built in 1930, totals almost 52,000 square feet and includes many features dating to its past life. The building has exposed brick, oversized industrial windows and ceilings 25 to 30 feet high. It’s 100 percent leased.

Northridge Capital and FORTIS Companies Partner on Two Premier Condominium Developments in Washington D.C.

Northridge Capital and FORTIS Companies Partner on Two Premier Condominium Developments in Washington D.C.

Northridge Capital, LLC, is pleased to announce its partnership with local developer The Fortis Companies on two, boutique condominium buildings that are being developed in Washington D.C.’s vibrant core.

Northridge Capital Closes Investment in 115-Unit, Class A Multifamily Development

Northridge Capital Closes Investment in 115-Unit, Class A Multifamily Development

Northridge Capital, LLC closes on its investment in 757 North Apartments, a $14.9 million multifamily construction development in the city of Winston-Salem, North Carolina. Northridge Capital established a joint venture partnership for the project with local developer, Laurel Street Residential, in 1st quarter of 2016, breaking ground in February.

Northridge Capital Announces Acquisition of Iconic, Corporate Office Building in Savannah’s Historic District

Northridge Capital Announces Acquisition of Iconic, Corporate Office Building in Savannah’s Historic District

Northridge Capital, LLC, the independent commercial real estate and asset management firm, closed on its purchase of the Realty Building, a $7.9 million investment in an iconic office building in historic Downtown Savannah, Georgia.

W HOTELS WORLDWIDE HITS THE SLOPES WITH W ASPEN

W HOTELS WORLDWIDE HITS THE SLOPES WITH W ASPEN

Northridge Capital, LLC to develop the W Aspen and The Sky Residences at W Aspen on the site of the Sky Hotel in Aspen, CO, in a joint venture with local firm, Sarpa Development. Ideally situated at the base of Aspen Mountain, W Aspen will provide skiers the ability to ski right into the hotel for craft cocktails and more after an exhilarating day on the slopes.