"With strong demand by institutions for premium buildings of this type into today's yield-hungry environment, we thought it was the perfect time to sell this property and lock in significant gains for our investors," Starwood vice president Robert Geimer says in the statement.

Craig Davis Properties of Raleigh won the management and leasing contract and will lead the redevelopment of the retail building and the land, incorporating retail and multi-family components, according to a prepared statement from the Raleigh office of CB Richard Ellis Inc. which represented Starwood.

Geimer didn't disclose how long Starwood had owned the property or at what price it was previously purchased. Among the property's tenants are IBM, Research Triangle Institute, Verizon, BASF and PharmalinkFHI.