Sale of seven office buildings in Raleigh, NC, Cincinnati represents proven investment strategies.
ATLANTA – OA Development (OA) announces the sale of two office assets. In Raleigh, OA sold a six-building portfolio within Research Triangle Park’s Imperial Center to an institutional buyer for $94 million, or $230 per sq. ft. The transaction closed on November 17. In October, in the Cincinnati suburban market of Blue Ash, Hawthorne Center also traded hands for $26.5 million, or $196 per sq. ft., to an undisclosed buyer. No further transaction details are available.
“These two office assets really put into perspective the value of solid real estate fundamentals,” explains Brian Granath, partner, OA Development. “Both properties have consistently performed well weathering a variety of external influencers not excluding the unprecedented pandemic shutdown of 2020 as well as the ongoing fluctuation of workplace protocols that we’re all navigating today. These assets have thrown-off exceptional cashflow since 2012, but, bottom line, we completed our business plan and exceeded our original proformas.”
Located within Imperial Center, Raleigh-Durham’s largest business park at 456 acres; the six-building portfolio totals 408,572 sq. ft. across three- and four-story buildings on 28 acres. Currently, the portfolio is 92.5 percent leased to over 45 tenants representing some of Raleigh-Durham’s most notable healthcare and STEM-oriented businesses. OA acquired the portfolio in 2018 in three separate transactions totaling $76.6 million bringing the assets under two ownership entities and, subsequently, strengthening the overall market position. JLL Capital Markets represented OA in the off-market sales transaction.
“What is truly amazing is how this portfolio weathered the peaks of the pandemic with occupancy never dropping below 90%,” continues Granath. “Going forward, there is still a tremendous value-add potential for the new owners through the lease-up of available space at an even higher rent rate due to the continued demand from the healthcare and STEM industries.” Specifically, over the past 36 months, OA has pushed rental rates over pro forma due to the strength of the market.
Acquired in 2012, Hawthorne Center is a five-story class A office building totaling 135,413 sq. ft. in the heart of Blue Ash, OH, one of the most sought-after suburban office locales in greater Cincinnati. Originally occupied by multiple credit tenants, including The Coca-Cola Company, Hawthorne Center is now 100% occupied by Belcan, LLC, a global supplier of engineering, supply chain, technical recruiting and IT services and one of Cincinnati’s largest privately held companies. Blue Ash is located 20 minutes north of downtown Cincinnati and is home to more than 2,500 companies. Cushman & Wakefield Cincinnati represented OA in the transaction. “By securing the Belcan lease, OA returned Hawthorne Center to a profitable and reliable income generator,” continues Granath. “With the area’s surrounding development activity, the Belcan