The property is currently 35.3% leased to an attractive mix of tenants with remaining WALT of 4.7 years and in-place rents approximately 10.4% below market, presenting an attractive value-add offering with both leasing and mark-to-market upside.
This asset features high quality, Class A construction in a rapidly expanding submarket. With proximity to downtown Durham, University Tower provides potential investors with an opportunity to purchase an asset minutes away from the city center at an attractive basis. Robust multifamily and retail development within walking distance, including the University Hill mixed-use development which features 270 multifamily units and 65,000 SF of retail, have fostered an increasingly infill live-work-play environment in the immediate area, driving leasing velocity and long-term tailwinds at the Property. University Tower benefits from unparalleled access to the Hope Valley executive residential neighborhood, Duke University, Downtown Durham and Research Triangle Park, and appeals to a diverse tenant and employee base across the region.
Raleigh-Durham has been a beneficiary of robust corporate relocations and in-migration to the region as companies and employees seek low cost of living, high quality of life, business friendly locales. These trends, which have been in-place for several years, were catalyzed by the impacts of COVID-19, as evidenced by recent announcements by Apple, Google, Gilead Sciences, Fujifilm Diosynth, and Invitae, each of which announced plans over the past two years to establish a sizable workforce in Raleigh-Durham.