Accesso Partners LLC has acquired the Weston I and II Parkway Portfolio, two Class A office buildings from a partnership managed and owned by Capital Associates of Raleigh, for $73 million.
The acquisition expands Accesso’s ownership of Class A office space near the Research Triangle Park to nearly one million square feet. In March, the Hallandale Beach, FL firm acquired the 10-building, 691,000 square foot Meridian Corporate Center in Durham.
The portfolio consists of Weston I, a 212,441 square foot, six-story property at 1001 Winstead Drive, which is 97.8 percent leased, and Weston II, a 77,742 square foot, four-story property at 5020 Weston Parkway, which is 100 percent leased. Located on 15.51 acres in the Weston Corridor area, a mixed use, master planned park, the total portfolio is 98 percent leased.
“Raleigh-Durham-Cary is a magnet for science, technology, engineering and professional services companies and has a highly- educated workforce, many of whom graduated from the nearby research universities, who like the quality and pace of life here and chose to stay,” says Ariel Bentata, managing partner-investments and co-founder of Hallandale Beach FL- based Accesso. “We discovered this in March when we acquired Meridian Corporate Center in Durham, which is a 10-building, 691,000 square foot portfolio. We’re also planning a further expansion in the Raleigh-Durham area.”
Brian Rosen, Accesso’s chief investment officer, contends “this is a hidden treasure in office buildings. Weston I was designed by Skidmore Owings and Merrill, one of the great American architectural firms, and is distinctive in its style and quality. It was originally owned by KLM Airlines Pension Fund so it also has this international heritage. Accesso will be adding a state of the art fitness center and conference center plus other upgrades to both buildings as part of our value enhancement program.”
Interestingly, the seller, Frank Baird, CEO of Capital Associates, a Raleigh real estate investment firm, will stay on as property manager and leasing agent.
“Capital Associates has managed these properties since 1997 and we bought them in 2006,” says Baird. “When Ariel and Brian, said ‘Frank, you know the assets and the tenants better than anyone. Stay on for a year and let’s see how we do.’ How could I refuse?”
Baird says over 100 potential buyers expressed interest in the portfolio, 15 toured the properties and eight made offers. “Accesso was chosen because they were one of the most interested groups from the beginning and we felt they had the ability to close on time and at the price which they did.”
Ryan Clutter, senior managing director of HFF’s Carolinas office, Scot Humphrey, senior director, and directors Chris Lingerfelt and Zack Drozda, represented the ownership group and co-brokered the sale with Capital Associates.
Clutter says the two-building offering drew an exceptionally large number of interested buyers, because the area “has a strong, high income workforce, tremendous job and population growth, a thriving pro-business economy and one of the tightest office submarkets in the Southeastern US with very little vacancy. This is what institutional investors are looking for today.”
Cary and the heavily landscaped Weston Parkway Corridor business park, he added “are the real sweet spots in the region with desirable single family and apartment homes and over 100 retail, restaurant and entertainment venues close by. It is one freeway off ramp away from Research Triangle Park and another from RDU International Airport.”
Ply Gem Industries, a building products manufacturer, has maintained its corporate headquarters in Weston II and in early 2019, is expanding and taking over the entire building. Other tenants in the portfolio include Lawyers Mutual, the accounting firm of Burns and Bynum, Med Think Inc., Texas Instruments, Geomagic and SBM Life Sciences.
Susan Hill, managing director of HFF in Houston, provided acquisition financing.
About Accesso Partners. LLC
Accesso Partners LLC is a full-service, vertically integrated commercial real estate investment manager, owner and operator that aims to provide superior returns to its U.S. and international individual and institutional investors. Accesso’s focus is on acquiring office properties in Class A locations in the largest, fastest growing metropolitan cities and premier suburban submarkets throughout the U.S. Accesso’s property portfolio includes 82 office properties covering 15 million square feet. Its affiliate, Accesso Services LLC, provides proactive, cost-efficient property management services with an owner’s mindset. Accesso Partners LLC is headquartered in Hallandale Beach, FL. and has offices in Atlanta, Chicago, Dallas, Houston and Minneapolis.