JLL Capital Markets represented Highwoods in the sale of the non-core assets
April 05, 2024
CAROLINAS, Apr. 5, 2024 – JLL Capital Markets announced today that it arranged the sale of eight buildings totaling 338,000 square feet across from UNC-REX Hospital in the West Raleigh submarket to two separate buyers. One buyer purchased seven of the assets for continued medical and office use while the asset sold separately is slated for redevelopment.
JLL worked on behalf of the seller, Highwoods Properties, Inc, and procured the buyers. JLL also arranged acquisition financing for part of the portfolio.
The properties were built and/or acquired by Highwoods between 1982 and 1998, with three having been recently renovated. Together, the seven-asset portfolio had average occupancy of approximately 84 percent. The portfolio is a single campus, known as Rexwoods, situated at the high visibility southeast corner of Blue Ridge Road and Lake Boone Trail in West Raleigh, a dense infill and affluent residential area and a preferred office destination in Raleigh.
The portfolio is a premier campus-adjacent medical cluster in West Raleigh with high barriers for medical competition given the dearth of available land proximate to the hospital. The property is highly visible and accessible to Interstate 440 and Interstate 40 for easy travel around the entire Triangle area and 15 minutes from downtown Raleigh, Research Triangle Park and Raleigh Durham International Airport.
The JLL Capital Markets sales advisory team was led by Senior Managing Directors Mindy Berman and Ryan Clutter, Senior Director Daniel Flynn, Director Teddy Hobbs and Associates Woody Flythe and Landon Weaver. The JLL debt advisory team was led by Senior Director Anthony Sardo and Director Ward Smith.
“The JLL team was delighted to facilitate the sale for Highwoods”, said Berman, “finding purchasers that will draft off of the success of Highwoods at this location and continue to optimize the properties for their highest and best uses serving the medical and residential communities in West Raleigh and nearby UNC Rex Hospital.”
“Rexwoods is a highly regarded portfolio and has been controlled by the same ownership group for nearly 30 years,” said Flynn. “As such, the offering received strong interest from buyers with a variety of business plans for the future of the properties.”
JLL Capital Markets is a full-service global provider of capital solutions for real estate investors and occupiers. The firm’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment sales and advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.
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About JLL
For over 200 years, JLL (NYSE: JLL), a leading global commercial real estate and investment management company, has helped clients buy, build, occupy, manage and invest in a variety of commercial, industrial, hotel, residential and retail properties. A Fortune 500® company with annual revenue of $20.8 billion and operations in over 80 countries around the world, our more than 106,000 employees bring the power of a global platform combined with local expertise. Driven by our purpose to shape the future of real estate for a better world, we help our clients, people and communities SEE A BRIGHTER WAYSM. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.
Alli Semans
Hotels & Hospitality and Capital Markets PR
+1 330 329 6750
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