An empty office building in Durham, North Carolina, that had sat vacant for years is reopening later this year as the foundation for a new public charter school campus, the latest in a growing adaptive reuse trend where underutilized office space is converted into schools as the need for faster, cost-effective educational facilities in urban areas grows.
Triangle Math and Science Academy, a nonprofit charter operating multiple schools across North Carolina's Triangle, Triad and Charlotte areas, expects to open its new campus in August at Park City East, a roughly 77,000-square-foot, four-story office building it bought in December.
Like many office markets in the post-COVID era, North Carolina's Research Triangle has experienced elevated vacancy rates, and Park City East was no exception, despite a prime location just off Interstate 40 and recent capital improvements. The building, formerly home to the headquarters of nonprofit group FHI 360, has been vacant for three years as ownership struggled to secure traditional office tenants.
But as remote work and elevated interest rates continue to depress demand for office space, opportunistic buyers can capitalize by snapping up prime real estate for redevelopment, potentially at discounted prices. And though office-to-residential conversions tend to dominate headlines, a growing pool of educational institutions has also entered the mix.
The sale to Triangle Math and Science Academy not only provides a model for educational adaptive reuse in one of the fastest-growing regions in the country, but also preserves the property as a productive asset. In recognition, the deal earned a CoStar Impact Award for sale/acquisition of the year in Raleigh-Durham, as judged by an independent panel of local industry professionals.
About the deal: Triangle Math and Science Academy paid $9 million for its future school building in Park City, a 1980s-era campus that underwent an extensive redevelopment in 2024, transforming the dated office complex into a modern, wellness-oriented campus. The redevelopment introduced extensive outdoor amenity spaces, including walking trails, volleyball areas, frisbee golf and food truck zones, along with interior upgrades such as increased natural light, updated lobbies, conference facilities and a fitness center.
Despite the extensive reinvestment, Park City East initially struggled to attract tenants. NAI Tri Properties, serving as developer, sales and leasing agent, recognized that post-COVID office leasing favored smaller transactions and adjusted its strategy by incrementally leasing Park City West while marketing the fully vacant East Building to nontraditional users.
By expanding its buyer pool beyond traditional office users, the company ultimately connected with Triangle Math and Science Academy. School acquisitions introduce additional complexity, including long diligence timelines, specialized programming requirements, layered approvals and funding challenges, but a philanthropic investment allowed Triangle Math and Science Academy to begin interior build-out in time for an August 2026 opening. The new campus will expand access to STEM-focused education and relieve pressure on existing public schools, with the Triangle Math and Science Academy's latest location expected to serve up to 900 students from kindergarten to eighth grade.
What the judges said: "Creative thinking to solve one issue (vacant office space) by providing a solution to another (increasing need for education space.) This deal is exactly what this market needs as it matures and evolves," said Brett Cox, senior research analyst with JLL.
"The post-COVID 19 office market has not rebounded in the manner that we expected. By repurposing the building to a better use, they are lowering office vacancy and creating a meaningful impact on real estate in the Triangle," added Shelley Bhatia, senior vice president with TradeMark Properties.
"At a time when the office market continues to face challenges and many properties are struggling to retain traditional users, this $9 million acquisition by Triangle Math and Science Academy demonstrates a visionary adaptive reuse that meets a growing community need," said Jaime Nolan, vice president of marketing and research at Lee & Associates. "This transaction not only reflects strong market execution but also delivers lasting educational and community impact, making Park City East a clear and deserving winner."
They made it happen: Jimmy Barnes, executive vice president; Matt Glenn, vice president; and CEO Greg Sanchez, SIOR, of NAI Tri Properties represented JPB Holdings in the sale. Maureen Woodruff, senior commercial adviser and Brooks Long, sales representative, with Coldwell Banker HPW, represented Triad Educational Services.