Chapel Hill firm buys North Hills office portfolio for $12.2M
By Ben Graham – Staff Writer, Triangle Business Journal
Oct 1, 2018, 7:46am
A growing, Chapel Hill-based real estate investment firm has closed on an office building portfolio in Raleigh’s North Hills neighborhood, just inside the I-440 Beltline.
Prudent Growth Partners bought four buildings on Barrett and Haworth drives for $12.2 million, adding 103,000 square feet of office space to its portfolio.
“To own several buildings like this inside the Beltline — all with rents that are very modest relative to most other buildings being built in North Hills — we think it is a great long-term hold,” Prudent Growth Partners President Tom Hahn writes in an email. “Our immediate plans are simply to continue to operate the buildings well and invest in some common-sense improvements.”
Hahn founded the company in 2015, leading the firm through 20 acquisitions since then, with a focus on under-the-radar property classes, including smaller and older apartment complexes, neighborhood shopping centers and Class B and C office buildings.
Major tenants at the North Hills buildings include the N.C. Department of Environmental Quality, Limbionics of Raleigh, Think Tech Advisors and the Raleigh School of Nurse Anesthesia.
Hahn says the buildings, which have a 4 percent vacancy rate, show the value of older, well-located office space. While offices in newer buildings in Raleigh are pushing rents of more than $35 per square foot, these properties offer a prime location for half that rate, allowing tenants “to be in North Hills and in inside the Beltline and have an address you can be proud of,” Hahn says.
The seller was Jerry McLaurin, a Raleigh real estate investor, who bought the properties in the 1990s as part of a larger set of acquisitions that totaled $3.79 million.
Tim Peters, a broker with Property Resources, represented the buyer and seller in the deal.