News release

JLL closes $330M sale of brand new, trophy office development in Raleigh

Growth markets such as Raleigh continue to attract investment into new construction

January 05, 2022

Kristen Murphy

Investor PR, Capital Markets, Hotels, Property Management
+1 617 848 1572

RALEIGH, Jan. 5, 2022 – JLL’s Capital Markets group announced today that it has closed the $330 million sale of Bloc 83, a brand new, trophy office development totaling 495,121 square feet in Raleigh, North Carolina. The sale of Bloc 83 represents the largest single real estate transaction in Downtown Raleigh’s history.

JLL represented the seller, Heritage Properties, and procured the buyer, City Office REIT.

Completed in 2019 and 2021 respectively, Bloc 83 consists of two Class A office towers, One Glenwood and Tower II at Bloc 83, which are 79% leased and anchored by Envestnet, First Horizon Bank and McAdams. The development features high-quality construction, best-in-class tenant buildouts, street level retail space and two on-site parking garages. In addition, the towers offer amenities that are in high demand today, including a state-of-the-art fitness center, rooftop amenity terrace, locker rooms with showers, an interactive sports room with a golf simulator and expansive tenant lounges.

The properties are positioned on 3.23 acres at 1 Glenwood Ave. and 621 Hillsborough St. in Glenwood South, a growing mixed-use district of Raleigh. The location is surrounded by a large concentration of multifamily and residential uses, art museums, shops, chef-driven restaurants, and lively nightlife options. Additionally, The Origin Hotel is located on-site and is connected to the One Glenwood parking garage providing 126 rooms for tenants and their guests. Bloc 83 also benefits from its walkable location to Union Station, a $100 million multi-modal transportation facility.

The JLL Capital Markets team representing the seller was led by Senior Managing Director Ryan Clutter, Directors John Mikels and Daniel Flynn and Senior Director Chris Lingerfelt.

“Glenwood South has rapidly transformed into the preeminent live-work-play destination in Raleigh,” Clutter said. “About half of the residents have migrated into the city from out-of-state due to Raleigh being a leading brain hub and innovation market that is home to 12 colleges and universities, more than 7,000 diverse companies and a significant STEM industry that has a significant operating cost discount to peer stem hubs.”

“Across the country, we are seeing new growth submarkets thrive in a post-COVID environment,” added Mikels. “Similar to South End in Charlotte or Fulton Market in Chicago, the Warehouse District and Glenwood South have quickly become widely recognized growth submarkets, where tenant activity and investor demand are very strong. At the convergence of the two, Bloc 83 was a highly sought-after investment opportunity, and will be an attractive location for an office or retail user for years to come.”

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. JLL has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion in 2020, operations in over 80 countries and a global workforce of more than 95,000 as of September 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.

About Heritage Properties

Heritage Properties, Inc. is a team of experienced and creative professionals dedicated to providing investment opportunities in high quality, well located commercial real estate while creating value through comprehensive real estate development, acquisition and asset management. Heritage’s mission is to create value through placemaking and enhance the communities in which it invests through the creation of superior real estate environments and its participation in community philanthropy. Heritage has developed and/or acquired over 6.5 million square feet of commercial real estate since its inception.

About City Office REIT 

City Office REIT is an internally managed real estate company focused on acquiring, owning and operating high-quality office properties located in leading 18-hour cities in the Southern and Western United States. City Office currently owns or has a controlling interest in 6.2 million square feet of office properties. The company has elected to be taxed as a real estate investment trust for U.S. federal income tax purposes.