Bloc 83, the brand-new trophy property in downtown Raleigh, N.C., was picked up by City Office REIT for $330 million — reportedly, the largest individual transaction in the history of downtown Raleigh commercial real estate. JLL Capital Markets announced the sale and represented the seller, Heritage Properties, in the transaction. 

Bloc 83 is a two-tower development in the growing, mixed-use district of Glenwood South in downtown Raleigh. Situated on 3.23 acres, the property consists of 498,820 square feet of Class A Raleigh office space. 

The two towers — One Glenwood and Tower II at Bloc 83 — are nearly 80% leased with the majority occupied by First Horizon Bank, Envestnet, and McAdams. The property also features two on-site parking structures, top-of-the-line tenant buildouts, and street-level retail, in addition to a state-of-the-art fitness center complete with a golf simulator and expansive tenant lounges. 

Notably, the South Glenwood district is quite diverse: There are a number of multifamily and residential buildings, as well as prominent restaurants, art museums, shops, and an energetic nightlife scene. The Origin Hotel — which has 126 rooms — is also located on-site and connected to the One Glenwood parking structure. Bloc 83 is also near the Union Station multi-modal transportation facility. 

The JLL Capital Markets team representing the seller was led by Senior Managing Director, Ryan Clutter; Directors John Mikels and Daniel Flynn; and Senior Director, Chris Lingerfelt. 

“Glenwood South has rapidly transformed into the preeminent live-work-play destination in Raleigh,” Clutter said. “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 that is home to 12 colleges and universities; more than 7,000 diverse companies; and a significant STEM industry that has a significant operating cost discount to peer stem hubs.” 

“Across the country, we are seeing new growth submarkets thrive in a post-COVID environment,” added Mikels. “Similar to South End in Charlotte or Fulton Market in Chicago, the Warehouse District and Glenwood South have quickly become widely recognized growth submarkets, where tenant activity and investor demand are very strong. At the convergence of the two, Bloc 83 was a highly sought-after investment opportunity, and will be an attractive location for an office or retail user for years to come.” 

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