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 submarket is the largest life science market in the region and 5th 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 5 years of remaining lease term at close. However, our investment strategy will be to convert additional square footage to lab space as leases expire, providing the potential outsized returns.
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 Charlotte metro area is projected to lead the nation for the growth of the 25-34 year old renter cohort over the next five years at 1.1% per year compared to 0.3% for the U.S. In our view, Charlotte and its surrounding communities will remain an attractive location for multifamily investment due to its strong economic activity, job growth, and renter and investor demand.
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.