Done Deals: JLL Capital Markets leads sales efforts for Midtown Plaza, a Class AA office building in Raleigh, NC

Wednesday, January 3, 2024

JLL Capital Markets leads sales efforts for Midtown Plaza, a Class AA office building in Raleigh, NC

Sarah Holloway

CAROLINAS – JLL Capital Markets has closed the sale of Midtown Plaza, a fully leased, Class AA office building located in the highly sought-after North Hills district in Raleigh, North Carolina.The price was not disclosed.

Midtown Plaza, a 329,747-square-foot,
12-story office building in Raleigh, NC

JLL marketed the property on behalf of the seller, Lionstone Investments, working on behalf of an institutional investor.

Completed in 2017, Midtown Plaza is a 329,747-square-foot, 12-story office building that is fully leased. The property features a diverse and stable rent roll, boasting esteemed tenants such as Altera, Gilead Sciences and Fifth Third Bank, contributing to a weighted average lease term of six years.

Ryan Clutter

Midtown Plaza is situated in North Hills, a premier live-work-play destination in Raleigh, at the intersection of the Innovation District and Park District.

The property benefits from its proximity to a thriving neighborhood filled with high-end restaurants, shops, fitness centers, and a large concentration of multifamily and residential units.

With an office occupancy rate of 98.5%, tenants have been clamouring to get into the burgeoning North Hills market for years, making it the Triangle’s most desirable office address.

The JLL Capital Markets Investment Sales and Advisory team representing the seller was led by Senior Managing Directors Ryan Clutter and Richard Reid, Senior Director Daniel Flynn, Director CJ Liuzzo and Associates Sarah Holloway and Woody Flythe.

Richard Reid

“Investors were drawn to Midtown Plaza due to its significant mark-to-market potential, as rental rates for Class A office spaces in North Hills have already increased by 27% since 2017,” Clutter said.

“This transaction is further evidence that highly amenitized, experiential office assets are still experiencing robust demand from real estate investors,” added Flynn.

JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers.

The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization.