FCP and Kane Realty sell The Dillon mixed use development in Raleigh for USD236m
FCP and Kane Realty Corporation have sold The Dillon, a mixed-use development in downtown Raleigh, to an institutional client advised by MetLife Investment Management, for USD236 million.
The Dillon comprises 18 stories encompassing 221,300 square feet of LEED Gold-certified Class A office space, 52,600 square feet of activated retail, two six-story apartment buildings totalling 271 units and a 994-space parking deck. Portions of the 100-year old Dillon Supply warehouse building were preserved and incorporated into its new life to create a differentiated product that successfully attracted a diverse tenant base. The property occupies an entire 2.5-acre city block and is the flagship Transit Oriented Development within Raleigh’s Warehouse District.
The Dillon’s office space, featuring panoramic views of downtown Raleigh and the surrounding cityscape, was 100 per cent leased within nine months of completion. Kane Realty served as the developer, property manager and leasing agent for The Dillon.
“FCP is incredibly proud of our partnership with Kane Realty Corporation and our shared vision for the remarkable architectural, contextual and lifestyle impact The Dillon has brought to Raleigh, particularly within the Warehouse District where it has been a catalyst for growth,” says FCP Principal, Erik Weinberg. “FCP identified the Raleigh/Durham region as an important growth market in the Sunbelt more than a decade ago. Our confidence in this market has only continued to grow and with ULI recently naming Raleigh as the number one US market to watch for investment and development, we expect to continue to be active here even as we successfully conclude our business plan for The Dillon.” FCP has a regional office in Raleigh and has completed more than 20 investments – both multifamily and commercial – since entering the market in 2010.
“This announcement is an important milestone in our partnership with FCP," says John Kane, Chairman and CEO of Kane Realty Corporation. "The Dillon was truly a game changer for downtown Raleigh’s Warehouse District. The creativity and vision behind this distinctive project has brought more vibrancy and renewed energy to the area. From the premier retail to the innovative office spaces, we are proud of this landmark project and look forward to its continued success in the future.”
Retail tenants at The Dillon include O-Ku Sushi, Oak Steakhouse, Barcelona Restaurant and Wine Bar, Weaver Street Market, Urban Outfitters and Heirloom Brew Shop, Shred415 and JoJa Nails. The Dillon’s Class A office tower is anchored by Arch Capital and includes tenants Spaces, Stewart Engineering, Analog Devices, Inventure Civil, Medable and FMI Corporation.
FCP and Kane Realty extend their appreciation to Matthew Lawton, Ryan Clutter, Coleman Benedict, Andrea Howard, Jeff Glenn, Chris Lingerfelt, Allan Lynch, Tom Kolarcyzk, John Mikels, Daniel Flynn and Sara Wagman of JLL.