Transwestern to Sell Value-Add Investment in The Heart of The Triangle Region
November 01, 2019
DURHAM, N.C. – Transwestern Commercial Services (TCS) today announces it has been tapped to sell TBC Place I and II, two single-story flex/office buildings totaling 177,743 square feet at 4021 and 4025 Stirrup Creek Drive in Durham, North Carolina. Transwestern Managing Directors John Bell and Kevin Markwordt will market the value-add investment on behalf of the seller.
“There has been an uptick in investment sales activity in the Triangle region’s Interstate 40/ Raleigh Triangle Park submarket, as shown by recent office and industrial asset transactions,” said Bell. “As one of the strongest research and development markets in the U.S., the region provides a competitive advantage for businesses such as high labor productivity, a modest cost of living, and affordable higher education expenses. As such, tenants and investors alike are drawn to the area, and we expect TBC Place I and II to attract brisk interest from potential buyers.”
Situated within the prestigious Triangle Business Center corporate and research park, TBC Place is strategically positioned to capitalize on the R&D and technology growth of the RTP region. The asset is 84% occupied and caters to a diverse mix of long-term tenants due to its ability to accommodate multiple user types with various size and space requirements. The property presents the opportunity to benefit from forthcoming rental rate growth and substantially increase in-place rents and cash flow as available space becomes increasingly scarce in the market.
“TBC Place is an exceptional value-add investment offering with immediate upside through additional leasing of the 28,949 square feet of available space and a few minor cost design upgrades,” said Markwordt. “New ownership can expect a rapid lease-up of vacancy resulting from existing tenant interest.”
Raleigh-Durham has experienced significant growth in population and business expansion. Direct office vacancy as of third quarter 2019 is 2.2%, its lowest level since 2015. With limited construction, positive net absorption, and decreasing vacancies, submarket fundamentals are expected to strengthen and lead the market, pushing rental rates higher in coming years.
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Transwestern Commercial Services (TCS) is a privately held real estate firm of collaborative entrepreneurs who deliver a higher level of personalized service and innovative client solutions. Applying a consultative approach to Agency Leasing, Asset Services, Occupier Solutions, Capital Markets and Research, our fully integrated global organization adds value for investors, owners and occupiers of all commercial property types. We leverage market insight and operational expertise from across the Transwestern enterprise, which includes firms specializing in development and real estate investment management. TCS has 34 U.S. offices and assists clients from more than 200 offices in 37 countries through strategic alliances with France-based BNP Paribas Real Estate and Canada-based Devencore. Experience Extraordinary at transwestern.com and @Transwestern.