Triangle commercial real estate sales reach $469M in May
Investors in the Triangle were hot for hotels in May.
Of the nearly $469 million in major commercial property sales recorded in the Triangle during the month of May, nearly half were in hotel acquisitions, according to a review of deed records in Wake, Durham and Orange counties.
The Triangle – on average – may have one or two hotel properties that trade each month, but in May the market had investors paying nearly $203 million for 12 high-profile properties.
Leading the list was Concord Hospitality Enterprises’ $101 million sale of both the 229-room Renaissance Raleigh Hotel and the 137-room Hyatt House Raleigh Hotel, both located within North Hills and co-owned by North Hills developer Kane Realty Corp. The new owner is the sovereign wealth fund of the government of Abu Dhabi.
The second largest commercial property deal of the month, among those of $7 million or more, was Starwood Capital Group’s acquisition of three apartment communities in Raleigh and Durham for $72 million. The properties have a combined 942 rental units.
All total, 25 building sales were finalized in May among 16 commercial investor groups, including:
- The former Courtney Estates at Brier Creek apartment community – now called Oakwood Raleigh at Brier Creek – was sold for $44 million;
- The Whetstone Apartments at 501 Willard St. in downtown Durham, which sold for $35.6 million. Tribridge acquired the recently completed 204-unit property from Virginia-based Armada Hoffler Properties (NYSE: AHH);
- The Doubletree by Hilton Hotel at 4810 Page Creek Lane in Durham, which sold for $33 million;
- The Homewood Suites by Hilton Raleigh Crabtree hotel off of Glenwood Avenue in Raleigh and the Hampton Inn Raleigh-Cary hotel off of Tryon Road in Cary, which sold for a combined $24.7 million;
- Five Red Roof Inn hotel properties in Raleigh and Cary, which sold for a combined $22.8 million;
- A Rex Hospital-affiliated medical office building at 1505 SW Cary Parkway in Cary, which sold for $21.4 million.
- The two office buildings at 5540 Centerview Drive and 801 Jones Franklin Road in Raleigh, which sold for a combined $19.1 million;
- The Harris-Teeter-anchored Kings Grant Commons shopping center in north Raleigh, which sold for $18.6 million;
- The Courtyard Durham by Marriott at 1815 Front St. in Durham, which sold for $16 million;
- The Newcastle South office building at 1015 Swabia Court in Durham, which sold for $14.75 million;
- The Northwoods Townhomes, a 137-unit rental community in Raleigh, which sold for $13.9 million;
- The Bennington Woods apartment community in Raleigh, which sold for $13.25 million;
- The Willow Creek Apartments in Durham, also known as Creekside Landing apartments, which sold for $11.35 million; and
- The former Crown Plaza Hotel in Durham at 600 Willard St. was sold to Graduate Hotels for $7.6 million with plans to redevelop the downtown property.
Mary Katherine Fagan, Trademark Properties