Grubb Properties Buys Cary Corporate Park for $7M
Triangle Business Journal by Amanda Jones Hoyle, Staff Writer Date: Monday, March 5, 2012, 2:35pm EST
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The Edinburgh Center corporate park near MacGregor Downs in Cary has been sold for $7 million to Grubb Properties, which plans to renovate the four office buildings.
Grubb Properties purchased the buildings from an Asheville investment group led by Charles Archerd. Archerd and his partners with Edinburgh Investments LLC had owned the buildings on Edinburgh South Drive since 2001. Grubb Properties splits its corporate office between Charlotte and Raleigh.
The four Edinburgh Center buildings were built between 1984 and 1991 and have a combined 115,027 square feet of space. The property was 69 percent occupied in December, according to Triangle Business Journal’s fourth quarter 2011 SPACE survey. That was much lower than the average occupancy rate of 79 percent for all Class B buildings in the Cary submarket in the fourth quarter.
Edinburgh Center’s largest tenants include Rockwell Automation and Erie Insurance, says Sam Crutchfield of Grubb Properties. The rest of the leased space is occupied by small law firms, accounting firms and other service organizations.
“We do plan to renovate to a degree,” Crutchfield says. “We have different plans for each building. We do plan to clean them up, reposition them and fill them with more tenants.”
The Edinburgh Center buildings had been added to an investor “watch list” in November after Archerd’s 10-year commercial mortgage backed securities loan matured without being refinanced. The outstanding loan balance for the property at the time was $6.3 million, according to TREPP, a CMBS research firm.
According to Wake County deed records, Grubb Properties has secured its purchase of Edinburgh Center with a $5 million loan from Symetra Life Insurance Co. of Seattle, Wash., that is scheduled to mature in 2021.
In the Triangle region, Grubb Properties also owns and operates the Glen Lennox residential and retail center in Chapel Hill, the Sterling Forest apartment complex on Six Forks Road in Raleigh and two small office building on Harrison Avenue in Cary. The firm is also a joint venture partner with Dominion Realty Partners in the construction of a 338-unit apartment complex that is underway near Triangle Town Center mall in north Raleigh.
Posted: March 05, 2012 - News | More News