JLL Arranges $330M Sale of Bloc 83 Office Development in Raleigh

by Kristin Harlow

RALEIGH, N.C. — JLL Capital Markets has arranged the $330 million sale of Bloc 83, a new office development totaling 495,121 square feet in Raleigh. The sale represents the largest single real estate transaction in downtown Raleigh’s history, according to JLL. Heritage Properties Inc. sold the asset to City Office REIT (NYSE: CIO).

Bloc 83 consists of two Class A office towers that were built in 2019 and 2021. Known as One Glenwood and Tower II, the buildings are 79 percent leased and are anchored by Envestnet, First Horizon Bank and McAdams. Envestnet is a financial services and technology company, while McAdams is a civil engineering company.

The development features street-level retail space and two onsite parking garages. Amenities include a fitness center, rooftop space, locker rooms with showers, tenant lounges and an interactive sports room with a golf simulator.

The properties are positioned on a little over three acres in Glenwood South, a growing mixed-use district of Raleigh. The Origin Hotel is located onsite and is connected to the One Glenwood parking garage.

“Glenwood South has rapidly transformed into the preeminent live-work-play destination in Raleigh,” says Ryan Clutter, senior managing director with JLL. “About half of the residents have migrated into the city from out of state due to Raleigh being a leading brain hub and innovation market.”

Raleigh is home to 12 colleges and universities, 7,000 companies and a significant science, technology, engineering and math (STEM) industry, according to Clutter.

Along with Clutter, the JLL team representing the seller included John Mikels, Daniel Flynn and Chris Lingerfelt.

Maryland-based Heritage Properties has developed or acquired more than 6.5 million square feet of commercial real estate since its inception.

Dallas-based City Office REIT currently owns or has a controlling interest in 6.2 million square feet of office properties. The company focuses on the southern and western regions of the United States. City Office REIT’s stock price opened at $20.64 per share Wednesday, Jan. 5, up from $9.53 per share one year ago.

— Kristin Hiller

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