Office Portfolio on NC State University’s Centennial Campus Is for Sale

Thursday, March 1, 2018

Update: This portfolio is no longer on the market. Please click here for a listing of our current commercial real estate investment listings.

HFF, on behalf of the owner, is marketing the Centennial Campus Portfolio for sale. The six-building, institutional-quality office portfolio totals 620,797 square feet and is located on North Carolina State University’s Centennial Campus in Raleigh. Ideally positioned in one of the world’s preeminent University Research Parks, the portfolio is 95.4 percent leased to an attractive tenant roster anchored by investment-grade STEM tenants. This core investment opportunity features exceptional historical performance and is poised for a tremendous long-term outlook as Centennial Campus offers an unmatched ability to attract and retain tenants due to exceptional public-private partnerships it offers, access to a market-leading amenity base and world-class research facilities and access to one of the country’s top-ranked labor forces.

The Centennial Campus Portfolio comprises the Alliance Center; Venture Center I, II, III and IV and Venture Place in West Raleigh on NC State University’s Centennial Campus and benefits from an urban/suburban setting with immediate proximity to Downtown Raleigh (two miles), a major economic hub; Glenwood South (1.8 miles), a vibrant mixed-use area; Cameron Village (2.5 miles), a premier retail destination; and North Hills (eight miles), Raleigh’s premier mixed-use lifestyle district. Moreover, the assets offer exceptional regional connectivity with convenient access to Interstate 40 (0.5 miles), Interstate 440 (1.5 miles) and US-401 (two miles), which are the area’s three primary transportation arteries. As a result, the location affords easy commutes from Raleigh’s main executive residential hubs, Cary, Central Raleigh and North Raleigh, while also allowing for easy access to some of the fastest-growing communities in the country such as Apex, Holly Springs, Garne and Morrisville. The office portfolio is also virtually adjacent to NC State’s Farmers Market, Pullen Park and Dorthea Dix Park, a future world-class, 306-acre destination park that is currently in development.

Office Portfolio for Sale Investment Highlights

  • Generational Investment Opportunity:  NC State’s Centennial Campus is a center of innovation built on strategic public-private partnerships that provide the quintessential environment for nurturing forward-thinking startups, cultivating organic growth and attracting some of the world’s most influential companies. Positioned at the center of this innovative hub, the portfolio for sale has access to a world-class university, state-of-the-art technological and research facilities, a premier labor pool and an unmatched amenity package. As a result, the portfolio boasts exceptional historical performance, with a remarkable 10-year average occupancy of 96.8 percent and an attractive long-term outlook. With extremely high barriers-to-entry, as the university owns all developable land on Centennial Campus, investors are presented with a rare opportunity to acquire significant critical mass in one of the world’s premier University Research Parks. One of the only offerings of its kind in the country, the Centennial Campus Portfolio presents investors with a truly generational investment opportunity.
  • Situated Within a Premier Research Facility:  North Carolina State University is a premier research institution located west of Downtown Raleigh on a pristine 2,099-acre campus featuring world-class facilities in an ideal urban/suburban campus setting. The university produces a pool of world-class talent and serves as the leading provider of employees for companies such as IBM, Cisco Systems, SAS Institute, Biogen, GlaxoSmithKline, NetApp, Duke Energy and Boeing, among others. In addition, NC State serves as a continuous driver of office demand through partnership initiatives with leading STEM companies from around the world.
  • Superior Historical Performance with Market-Leading Occupancy and Rental-Rate Growth:  The portfolio is the region’s top-performing business park, boasting exceptional historical occupancy and rental rate growth that consistently outpaces the Raleigh-Durham Office market. Average occupancy of the Centennial Campus Portfolio over the last 10 years is a remarkable 96.8 percent, well above the Raleigh-Durham Office market average of 89.6 percent, demonstrating the ability to attract new tenants and retain existing tenants at the property providing investors with attractive stability. This performance is expected to continue as the public-private partnerships at Centennial Campus assure high retention and cultivate strong organic growth. Moreover, the portfolio receives unprecedented tenant demand from a diverse range of tenants including innovative startups, stable government agencies and the world’s leading international corporations, all seeking access to Centennial Campus. This strong demand is reflected in above-market rental rates and impressive rental rate growth in the portfolio. Rental rates at Centennial Campus currently average $29.21 per square foot, a significant premium to the average Raleigh-Durham office rental rate of $22.20 per square foot. In addition, the Centennial Campus Portfolio experienced strong rental rate increases over the past 10 years, growing at nearly three times the pace of the overall market.
  • Attractive Tenant Roster Anchored by Investment-Grade Tenants Representing RTP’s Core Industries:  The Centennial Campus Portfolio features an impressive tenant roster anchored by the Research Triangle’s core industries including STEM, government and education. The assets contain a blend of Fortune 500 firms, publicly traded international companies, stable government units, innovative R&D partnerships and rapidly expanding regional companies, some of which are headquartered at the property. With more than 80 percent of tenants falling under the STEM umbrella, the office properties for sale are a microcosm of the flourishing technology and innovation taking place in the wider Raleigh-Durham market. Moreover, the offering features a weighted average lease term of more than 4.2 years, offering highly coveted long-term stability to investors.

The portfolio is a generational investment presenting investors with the unique opportunity to acquire Raleigh-Durham’s premier office portfolio and gain significant critical mass on the campus of a prestigious Tier-1 research university. For more information on the Centennial Campus Portfolio or any other office properties for sale, please contact Scot Humphrey, Ryan Clutter or Chris Lingerfelt in HFF’s Carolinas office.  For financing information, please contact Roger Edwards. To view HFF’s current real estate investment listings, please click here to be directed to HFF’s property search page.

Holliday GP Corp. (“HFF”) is a North Carolina licensed real estate broker.

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