National Model for Historic Restoration Extends Landmark Leases in Durham, NC

American Tobacco Campus, Durham, NC

DURHAM, NC, June 25, 2019 -- Duke University and McKinney have extended their leases at American Tobacco Campus (ATC). But these are no ordinary leasing arrangement. Both helped launch ATC and by extension downtown Durham on a path to renewal and national acclaim. 

Together, the two lease renewals account for nearly 180,000 SF at the campus, which includes more than 1.2 million square feet of Class A office space. But the symbolic significance of the occasion goes far beyond numbers.  

Gretchen Walsh

“While it was a big leap of faith to move the agency from Raleigh to Durham and the American Tobacco Campus in 2004, it’s turned out to be a perfect fit for us,” said Gretchen Walsh, McKinney’s managing partner in Durham.

“With ATC, we've found a true partner who has allowed us to approach space in a non-traditional manner, which has gone a long way in fostering the kind of creativity and integrated thinking that we’re all about.”

In the early 2000s, the notion of transforming the vast, long-shuttered tobacco factory into a meticulously restored and modernized mixed-use destination was highly, highly speculative. But Duke and McKinney stepped up as crucial early supporters.    

“What do these partnerships mean?" says Michael Goodmon, vice president of real estate for Capitol Broadcasting Company (CBC), which owns ATC. 

Michael Goodmon

"Imagine a Durham without not only American Tobacco but very possibly without the Durham Performing Arts Center. When Duke and McKinney signed those early leases, they essentially flipped the switch on the bright future that many of us now tend to take for granted.”

Goodmon adds, “The entire ATC and CBC teams are thrilled to continue these partnerships with one of the world’s leading universities and one of the country’s most dynamic creative agencies, writing new chapters that we’re confident will be every bit as exciting, positive and eventful.”

Scott F. Selig

Duke’s Lease  

Duke signed on with ATC in 2003 with the original lease actually kicking off in 2004. It’s new lease extends through April of 2030 

Duke will house some or all of its information technology, financial services, university counsel, corporate education, alumni affairs, and other resources at ATC -- totaling about 700 people occupying roughly 136,000 SF of Class A office space. It’s a footprint larger than the size of the Broadway-style theater at nearby DPAC.
  

Tallman Trask III

“American Tobacco Campus was and remains the future of Durham,” says Scott Selig, Duke’s associate vice president of capital assets and real estate. 

But looking back at the journey of Duke and ATC, Selig notes that not everyone was initially sold. Some personnel insisted they’d leave if relocated off Duke’s campus.

As to how that turned out, Selig pointed to a quote from Tallman Trask III, Duke’s executive vice president: “Today, those people who threatened to quit if we moved downtown say, ‘If you make us move out of American Tobacco we’ll quit.’”

CONTACT:

Greg Behr | GBW Strategies | Communications Strategist | 919.272.5621