NEWPORT BEACH, Calif.--(BUSINESS WIRE)--KBS, one of the largest owners of commercial real estate, today announced the sale of CAPTRUST Tower to Preferred Office Properties. KBS initially purchased the property in 2013 in a joint venture with Kane Realty Corporation, who will continue as a partner to Preferred Office Properties.
Originally built by Kane Realty Corporation, CAPTRUST Tower is a fully leased, 300,389 square foot, mixed-use Class A office building anchoring North Hills, a flourishing development in Midtown Raleigh that offers a unique combination of places to live, work, shop, play and stay. Within the building are nine stories of premier office space atop a six-level parking deck with streetscape retail and restaurants on the ground floor. At 230-feet tall, CAPTRUST Tower offers picturesque views of Raleigh’s downtown and Midtown skylines from every floor. CAPTRUST Tower received LEED® Gold Certification from the U.S. Green Building Council.
North Hills is a multi-faceted district offering tenants access to four-star hotels, banks, pharmacies, spas, salons, and a state-of-the-art 60,000 square foot gym. Premier dining establishments, high-end boutiques, department stores, and cafés are all a few steps in any direction.
The Raleigh Durham office market began 2019 with a strong quarter of positive absorption, marking the sixth consecutive quarter of positive net absorption, according to CBRE’s Q1 2019 Office MarketView. Class A office products accounted for 513,899 sf of the positive absorption, while overall net absorption sat at 438,103 sf.
“CAPTRUST Tower will continue to benefit from Raleigh’s solid population growth, as well as its unmatched positioning within the heart of North Hills, a master-planned ‘live, work, play’ community,” said Allen Aldridge, senior vice president for KBS and asset manager of the property. “The new owners will benefit from a location which offers tenants exceptional walkability, with convenient access to over 170 restaurants, premier shops, and services.”
Livibility.com recently named Raleigh number two in the nation for the 2019 Top 100 Best Places to Live. Located in Research Triangle Park (RTP) between three major Triangle research universities: Duke University in Durham, University of North Carolina in Chapel Hill and North Carolina State University in Raleigh. RTP was founded in 1959 by leaders from the business, government and academia to attract companies engaged in world-class research and development in growing scientific and technological disciplines, and is home to more than 170 companies including IBM, Cisco and Ericsson.
“CAPTRUST Tower is among the most iconic office assets in Raleigh,” added Marc DeLuca, regional president, Eastern United States for KBS. “We know the new owners will enjoy the leasing demand we have seen based on Raleigh’s ever expanding technology sector.”
Please find photos of CAPTRUST Tower here.
The CBRE team representing KBS in the sale included: Ben Kilgore, Will Yowell and Patrick Gildea.
“We are excited to have Preferred Office Properties make their second investment in the Raleigh market with CAPTRUST Tower,” said Ben Kilgore, Executive Vice President of Investment Properties at CBRE|Raleigh. “The ongoing job growth in the market and North Hills’ dynamic, one of a kind live-work-play environment were all factors in attracting substantial capital to this investment. CAPTRUST Tower’s location, the overall market, the unsurpassed walkable amenity base at North Hills, and the flow of capital into the Triangle market make it a fantastic opportunity.”
KBS is a private equity real estate company and an SEC-registered investment adviser. Founded in 1992 by Peter Bren and Chuck Schreiber, it is recognized as one of the largest commercial office owners globally. Since inception, KBS-affiliated companies have completed transactional activity of approximately $40 billion via 16 separate accounts and six commingled funds, for government and corporate pension funds. Additionally, KBS has sponsored five sovereign wealth funds and seven SEC-registered, non-traded REITs. For more information on KBS, its properties and real estate portfolios, please visit KBS.com. For information about KBS’ current offerings, please visit KBSDIRECT.com, an online portal for self-directed accredited investors to participate in institutional-quality real estate without paying up-front fees or commissions. Registration as an investment adviser does not imply any particular level of skill or training.
About Kane Realty Corporation
Founded in 1978 by John Kane, Kane Realty Corporation is a vertically integrated commercial real estate firm that provides development, construction management, leasing, and property management services across a variety of real estate product types. Kane Realty Corporation successfully employs smart growth principles to build places that improve the quality of life of their residents, neighbors, businesses, and visitors. National, regional and local industry groups and press publications have recognized Kane Realty Corporation as a leader in integrated mixed-use and in-fill redevelopment. Kane’s signature mixed-use property at North Hills (Raleigh, NC), the first true mixed-use property in the region, resulted in the emergence of Raleigh’s Midtown district. Today, Kane Realty is focused on large-scale, luxury mixed-use development, multifamily, office, and retail projects. For more information about Kane Realty Corporation, please visit www.kanerealtycorp.com.
CBRE|Raleigh is a CBRE office serving the Triangle region and is a joint venture between local principals and CBRE Group, Inc. The firm assists real estate owners, investors and occupiers by offering strategic advice and execution for property leasing and sales; property, facilities and project management; corporate services; debt and equity financing; investment management; valuation and appraisal; research and investment strategy; and consulting. In 2018, the Raleigh office completed $1.9 billion of sales and leasing transactions. Please visit our website at www.cbre.us/raleigh.