Raleigh Largest Office building is For Sale: Asking price to exceed $100 Million

Raleigh largest office building could soon be on the market for a record price tag of nearly $100 Million. With office buildings in the Raleigh area selling for record highs, the Wachovia Capital Center in downtown Raleigh may receive the highest sales price of any single building property in town. The building is located on the newly opened Fayettville Street on 1.2 acres with an adjacent parking garage.

DRA Advisors, the New York firm who owns the building is looking to capitalize on the current strength of this market and the record price/square foot sale of its property on Six Forks Road, the Colonade I. It sold for $27.6 million or $217 a foot. This is the highest price per square foot ever reached in Wake County to date. DRA hopes to either compete with that figure or surpass it with the Wachovia Center.

As Rex Thomas, president of the Grubb & Ellis/Thomas Linderman Graham real estate firm in Raleigh puts it, "Every building is selling at record prices."

The Wachovia currently has 544,482 square feet of leasable space and is 90% occupied with long-term tenants. These tenants include three of the Triangle's largest law firms, three of the largest Triangle accounting firms, along with the Cardinal Club on the 28th floor. The Cardinal Club is a social club and is part of the ClubCorp group of properties.

"Despite being considered commercial property, it is a huge shot in the arm for the residential real estate market by association," stated Steven W. Nelson, a residential real estate agent for Ida Terbet Team at Keller Williams. "Despite the slow down by other major cities, Raleigh's real estate market continues to shine and has plenty of room to grow in the near future." He adds that there will eventually come a time where the appreciation values will top out, but at this time, many years of growth remain for this "somewhat untapped" market.

Adding to the office mix in Raleigh is the advent of the newest and soon to be largest building in downtown Raleigh that will be the headquarters of RBC Centura. This building, whose ground breaking was in September, is expected to cost $100 million and will include about 275,000 square feet of offices, 17,000 square feet of retail space and 139 residential condominiums as reported by the Triangle Business Journal in its October 6, 2006 edition.

Investment brokers with CB Richard Ellis will be marketing the building for DRA Advisors while Spectrum Properties is the leasing and property managers for the Wachovia Capital Center.