The property is a single story, 84,748 square foot flex/R&D office property located next to the Research Triangle Park in Raleigh, NC.
The property is well-located within a dynamic innovation cluster anchored by life science and technology. The Research Triangle Park (RTP)/I-40 corridor is the largest life science submarket in the region and 7th largest in the U.S.
The stabilized property offers attractive annual income return in early years of ownership as it is leased to seven tenants with no lease roll until 2025. Our investment strategy will be to re-zone the property to allow full life science conversion as leases expire, providing potential outsized returns as life science rents are higher than traditional office rents.
As an office market, Raleigh-Durham features a well-balanced economy driven by a robust mix of leading pharmaceutical and biotechnology companies, healthcare institutions, financial services companies, world-class research universities and a business friendly state government.
The Raleigh-Durham market is driven by a skilled labor force with a favorable business environment and strong working-age population demographics. Proximity to large research institutions such as Duke and University of North Carolina feed talent into higher paying sectors as the share of employment in STEM occupations is almost double that of the national average.
Relatively low cost of living combined with a favorable corporate tax environment has led the way for business in-migration.
The Raleigh office market shows above-average near- and long-term growth prospects, below-average price volatility, and strong demographic tailwinds.