City Office REIT has purchased Bloc 83, a premier two-building office complex located in Raleigh, North Carolina, for $330 million.
The 494,000 square foot, newly built Class A complex possesses a prime location, market-leading features and strong tenancy. Bloc 83 is situated in the Glenwood South submarket, a preeminent live-work-play district of downtown Raleigh.
According to City Office, Glenwood South has attracted a population of young professionals relocating from larger metro areas and is the epicenter of Raleigh’s dining, shopping and entertainment district.
Bloc 83 features best-in-class, modern tenant buildouts, common areas and amenities. Highlights of the property include state-of-the-art fitness centers, a rooftop sky lounge, a yoga studio, various retail amenities and expansive lounges. The first building was delivered in 2019 and is currently 93% leased with a weighted average lease term remaining of approximately 10.3 years. The second building was delivered in 2021 and is in its initial lease-up phase at approximately 67% leased as of closing.
“Adding Raleigh to our footprint of high growth markets in the south and west strategically enhances our portfolio,” commented James Farrar, the Company’s Chief Executive Officer. “Raleigh’s highly educated workforce has been a driver for growth in the STEM and life science industries. The region’s tier one research universities, high quality of life and diverse economy positions it favorably over the long term.”
“The acquisition of Bloc 83 gives City Office immediate scale in one of the best locations in Raleigh. It is a spectacular asset that will be in high demand by office users both today and in the future.”