The Dilweg Companies, the Durham, N.C.-based real estate firm headed by CEO Anthony Dilweg, this week closed on its biggest acquisition to date, buying a 12-building, 773,000-square-foot portfolio of office and flex properties in the Raleigh-Research Triangle area from Charlotte-based Beacon Partners for $89.5 million. The acquisition boosts Dilweg’s Southeast portfolio to 4.7 million square feet.
The portfolio includes the Park Forty Plaza, RDU Center II and III, NorthPark I and II office buildings, five flex buildings in One North Commerce Center in North Raleigh, and two more flex properties in Cary known as MacGregor Place. All the assets were included in one of Beacon Partners' investment funds.
Ryan Clutter, a former CBRE investment sales broker who recently joined HFF to establish the firm's new office in Charlotte, led the brokerage team that marketed the portfolio on behalf of Beacon Partners, along with Ben Kilgore and Patrick Gildea of CBRE. The Dilweg Companies's Zach Ashton handled negotiations on behalf of the buyer.
"We are thrilled that our largest acquisition to date is in our backyard," Anthony Dilweg, CEO of the Dilweg Companies, said in a statement announcing the purchase. "It is an exciting time for the Raleigh-Durham office market, as fundamentals continue to improve. This value-add portfolio fits well within our investment strategy, and we look forward to owning these assets."
The acquisition reflects the The Dilweg Companies' recent strategic shift to the office market after previously investing largely in apartments, retail centers and self-storage property. Last year the firm purchased a pair of high profile office buildings in Charlotte. Dilweg’s investors have sponsored over $690 million in asset value and more than 7.3 million square feet throughout North Carolina, South Carolina, Virginia and Georgia.
HFF's Clutter said the portfolio attracted strong investor interest from both inside and outside the state, as investors increasingly look beyond the core gateway markets and take note of high-growth areas, such as Raleigh and Charlotte.
"There's been a lot of job growth here recently, and investors take note of that," said Clutter. "This portfolio offered a strong collection of assets, with a good mix of property types in desirable locations."