JLL closes sale of fully leased North Hills office building
JLL Capital Markets led the sales efforts for Midtown Plaza, a Class AA office building in Raleigh
CAROLINAS, Jan. 3, 2024 – JLL Capital Markets announced today that it has closed the sale of Midtown Plaza, a fully leased, Class AA office building located in the highly sought-after North Hills district in Raleigh, North Carolina.
JLL marketed the property on behalf of the seller, Lionstone Investments, working on behalf of an institutional investor.
Completed in 2017, Midtown Plaza is a 329,747-square-foot, 12-story office building that is fully leased. The property features a diverse and stable rent roll, boasting esteemed tenants such as Altera, Gilead Sciences and Fifth Third Bank, contributing to a weighted average lease term of six years.
Midtown Plaza is situated in North Hills, a premier live-work-play destination in Raleigh, at the intersection of the Innovation District and Park District. The property benefits from its proximity to a thriving neighborhood filled with high-end restaurants, shops, fitness centers, and a large concentration of multifamily and residential units. With an office occupancy rate of 98.5%, tenants have been clamouring to get into the burgeoning North Hills market for years, making it the Triangle’s most desirable office address.
The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Directors Ryan Clutter and Richard Reid, Senior Director Daniel Flynn, Director CJ Liuzzo and Associates Sarah Holloway and Woody Flythe.
“Investors were drawn to Midtown Plaza due to its significant mark-to-market potential, as rental rates for Class A office spaces in North Hills have already increased by 27% since 2017,” Clutter said.
“This transaction is further evidence that highly amenitized, experiential office assets are still experiencing robust demand from real estate investors,” added Flynn.
JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
For more news, videos and research resources, please visit JLL’s newsroom.
About Lionstone Investments
Lionstone Investments uses proprietary research and advanced analytics to identify durable growth and resilient income in U.S. real estate. For over 20 years, Lionstone has refined a data-centric approach, which augments real world experience with sophisticated technology, yielding understanding of the properties and demographics that drive long-term real estate value. It’s what we call the Power of RE: — research, relationships, and resources. Lionstone is a wholly owned subsidiary of Columbia Management Investment Advisers, LLC. Columbia Threadneedle Investments is the global brand name of the Columbia and Threadneedle group of companies. Please visit our website at: LionstoneInvestments.com.
About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.