January 13, 2020— Bridge Investment Group LLC’s (Bridge) subsidiary Bridge Office Fund Manager (Bridge Office) announced today the acquisition of two Class-A office assets in North Carolina’s capital city. Both properties — Capital Center, a seven-story, 161,698-square-foot building in West Raleigh, and Somerset Corporate Center which contains two buildings totaling 168,310 square feet in the Six Forks Falls of Neuse submarket — possess distinct location advantages in one of the nation’s fastest growing metropolitan areas. Surrounded by top-tier academic institutions, booming economic hubs and a vibrant cultural scene, both workplaces are in close proximity to major roadways and a highly skilled workforce in the Triangle region.
Located within 10 minutes from downtown Raleigh and 15 minutes to Raleigh-Durham International Airport via Interstate 440, Capital Center is 93% occupied with notable tenants including Plexus Services Corporation, K4Connect Inc., MyComputerCareers.com and Certara USA, Inc. The property’s attractive amenity package includes an on-site conference facility, a unique outdoor common area with a distinct water feature and a state-of-the art fitness center. Bridge plans to invest $2.95 million in additional improvements to further enhance Capital Center as a next-generation workplace, including upgrades to corridors and restrooms on each floor, enhancements to the outdoor plaza and a renovated entryway.
Situated 15 minutes away in the Six Forks Falls of Neuse submarket — also known as the heart of Raleigh’s Midtown district — Somerset Corporate Center also offers convenient access to Downtown Raleigh, North Carolina State University, top executive communities and rapidly growing suburbs all within 20 minutes. The submarket has greatly benefited from the North Hills development, a vibrant mixed-use lifestyle district just two miles away.
Recent improvements at Somerset Corporate Center include newly renovated corridors, lobbies, restroom and elevators across its four-story and six-story buildings, as well as the development of a conference center and business hub in the 4505 building. Currently 90% leased, the property boasts an impressive tenant roster, including KCI Technologies, Inc., TowneBank Mortgage, Care Services, LLC. and Select Bank & Trust Company. In line with Bridge’s proven value-add strategy, an additional $2.59 million will be invested to improve corridors and restrooms on each floor of the 4515 building, spec suites at the 4515 building and upgrades to the outdoor seating and picnic area.
“Well-balanced economic expansion, unmatched job growth and proximity to world-class universities have all been catalysts for the Triangle’s rise as one of the top investment markets in the country for office. Raleigh-Durham is consistently competing with gateway markets and outperforming its competitive set in the Southeast,” said Tommy Spinosa, director of Acquisitions and Asset Management for Bridge Investment Group. “By combining these promising factors with Bridge’s signature business model, we’re confident both properties will excel as coveted workplaces for forward-thinking companies that are seeking to grow in two of Raleigh’s most desirable neighborhoods.”
Ryan Clutter and Scot Humphrey with JLL represented the seller in the transaction. The law firm of Nelson Mullins served as the closing attorney.
The joint acquisition brings Bridge Office’s North Carolina portfolio to 635,393 square feet. In addition to Capital Center and Somerset Corporate Center, Bridge owns Harris Corners, a three-building office campus encompassing 361,879 square feet in Charlotte. A fast-rising player in the U.S. commercial office market, Bridge Office acquired more that 2.7 million square feet across the country in 2019 alone.
“With healthy cash flow from strong anchor tenants, an opportunity to lease up the remaining vacancy and their high-growth locations, these properties represent the value-add sweet spot where Bridge thrives,” said Matthew Beam, senior associate for Bridge Investment Group. “We’re eager to deploy our improvement plans at Capital Center and Somerset Corporate Center, and look forward to reintroducing the revamped, contemporary office product in such an exciting market.”
Available office spaces at Capital Center range from 2,800 square feet to 5,377 square feet, while spaces currently for lease at Somerset Center range from 4,174 square feet to 6,409 square feet.
Bridge Commercial Real Estate LLC, the operating company for Bridge Office, will oversee all property management and redevelopment work at Capital Center and Somerset Corporate Center. Renovations at both properties will begin immediately, with completion scheduled by year end 2020.