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Multi-Tenant Asset Sale Reaches $213 Per SF

RALEIGH, NC-The $27.1-million transaction for Colonnade One carried a 7.6% cap rate. The 126,926-sf office building is fully leased.

By Melissa Kress | Updated on October 13, 2006

RALEIGH, NC-KBS Realty Advisors LLC has purchased Colonnade One, a 126,926-sf office building in the Triangle. The deal carried a $27.1-million price tag and a 7.6% cap rate.

The sale price factors out to $213 per sf, the second highest for an office building in the Triangle, according to CB Richard Ellis Raleigh LLC, which exclusively repped the seller Colonnade Development LLC–a joint venture between DRA Advisors in New York and Spectrum Properties based here and in Charlotte. The CBRE team was led by Ben Kilgore, senior vice president in Raleigh, Will Yowell, executive vice president in Atlanta, Justin Parsonnet, first vice president in Atlanta, and Jay O’Meara, vice president in Atlanta.

“[Colonnade Development] decided to sell because of the state of the market right now,” Kilgore tells GlobeSt.com. “Cap rates are low, there is a tremendous amount of capital out there and more of that capital is looking at secondary markets. The timing was right to sell this property.”

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