Alex. Brown Realty (ABR) and their joint venture partner, Heritage Properties, are pleased to announce the acquisition of a two-building medical office park located at 101 & 105 SW Cary Parkway in Cary, North Carolina. ABR Chesapeake Fund V, a value-add real estate fund sponsored by ABR, invested $4.0 million in the joint venture. Financing for the acquisition was provided by Pinnacle Financial Partners.
The two-building portfolio is situated on 5.5 acres at the corner of Cary Parkway and Kildaire Farm Road, which boasts exceptional visibility to more than 50,000 vehicles per day. Located just one mile from WakeMed Cary Hospital, the properties are occupied by a diverse mix of medical office users. The medical park is being rebranded as Cary Medical Pavilion and the joint venture plans to complete approximately $2.5 million worth of upgrades to the portfolio by late October 2019. Planned improvements include a lobby and corridor renovation, elevator modernization, new suite entries, and roof replacement, among others.
“We are thrilled to acquire 101 SW Cary Parkway and continue growing our medical office portfolio. Our extensive history in the healthcare business and our experience developing high-end mixed-use projects will provide us with the knowledge to create a modern healthcare facility for medical practices to enjoy at a discount to new construction rents,” said Ryan Blair, Partner & Vice President of Development & Acquisitions at Heritage Properties.
“This is an attractive value-add opportunity in a market that is experiencing strong demographic and office fundamentals,” commented Tom Burton, ABR’s Senior Managing Director and CIO. “In addition, Heritage is a strong local operator and we anticipate the successful implementation of the portfolio’s business plan should produce attractive returns for our investors,” added Burton. The acquisition represents the second joint venture between ABR and Heritage.
Avison Young Raleigh-Durham has been selected as the leasing agent for the property, and Janet Clayton, a Principal of Avison Young and member of Avison Young’s Healthcare Group, along with Carlo DiGiorgio, Senior Vice President, Landlord Group (both based in the company’s Raleigh-Durham office) will provide leasing services for Cary Medical Pavilion.
Blake Thomas of Avison Young – Raleigh represented the buyer. “We were pleased to represent the joint venture in their acquisition of 101 & 105 SW Cary Parkway,” says Thomas. “These properties have tremendous potential, due to their prominent location and high visibility at one of Cary’s most heavily trafficked intersections. The joint venture is bringing a needed infusion of capital to these buildings, which were originally constructed in 1986 and 1999. Given Heritage’s track record of performance and their vision, it will be exciting to watch them reintroduce the property to the market.”
Alex. Brown Realty, Inc. (ABR) is a privately-owned real estate investment manager organized in 1972 and headquartered in Baltimore, Maryland. ABR co-invests with joint venture partners in a broad spectrum of property types located throughout the United States. www.abrealty.com
Heritage Properties is a full service commercial real estate firm founded in 1986 as one of four companies of the Meridian Group. Since its inception, Heritage Properties has developed and/or acquired over 6,500,000 square feet of commercial real estate in the eastern United States and maintains a commitment to responsible land and commercial property development, strategic acquisitions, and sound management of high quality, well-located office properties, retail centers, and industrial workplaces. Heritage Properties has completed or under construction of over $285,000,000 of commercial real estate in the Raleigh/Durham marketplace since 2016.
Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 120 offices in 20 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.
Thomas R. Burton
Alex. Brown Realty, Inc.