Grubb Properties and Rubenstein Partners Team Up to Buy Pair of RTP Office Bldgs., Plan to Renovate, Market Space to New Users
After successfully teaming up to acquire and reposition a former GlaxoSmithKline property in North Carolina in 2012, Grubb Properties and Rubenstein Partners have rolled the dice again, acquiring a pair of massive Research Triangle Park office buildings formerly occupied by telecom firm Ericsson totaling 467,000 square feet.
The Rubenstein and Grubb partnership acquired the pair of now-vacant buildings at 7001 and 8001 Development Drive on a 67-acre site for $26 million, according to local reports and public record informations. Cushman & Wakefield|Thalhimer's Kent Honeycutt and J.D. McNeill represented Ericsson in the sale.
The pair of investors hope to repeate the feat of renovating, repositioning and leasing or selling the buildings to new tenants or buyers.
Ericsson built the two-building campus in 1995 and 2000 and remained their sole occupant until 2009 when it relocated its local operations as part of a massive restructuring. The two buildings contain approximately 460,000 square feet of office and laboratory research space. Prominent corporations such as Cisco Systems, NetApp and Credit Suisse currently have operations near the complex.
"We are excited about the opportunity to reposition this property into a signature headquarters for companies eager to locate or expand in the nation's leading research and development park," said Grubb Properties CEO Clay Grubb. Rubenstein and Grubb have grand plans for the project, including substantial investments in building renovations and campus upgrades, adding they hope to restore the renovated property to "like new" status.
Rubenstein and Grubb most recently teamed up to acquire and reposition the former GlaxoSmithKline property located in Imperial Center just outside the Research Triangle Park. Within the first year of ownership one of the two buildings -- rebranded as Newcastle North and South -- was fully leased to a supplier of composites and resins.
Founded in 1963, Grubb Properties is a real estate operating company with offices in Charlotte, Raleigh and Lexington, N.C. Grubb has completed over $2 billion investment transactions including seven private equity real estate funds.
Philadelphia-based Rubenstein Partners is a private real estate investment management and advisory firm that has invested in more than 8.5 million square feet of office real estate assets located in New England, metro New York, the mid-Atlantic, Midwest and Southeast.