Major expansion in the medical district, including a new $178-million cardiac institute, is a driving factor for the location of the new development, says Brett Griffith, partner at Nottingham Partners. The class A project, along with an upscale select-service hotel, will support a demand created by the new teaching facility, he says.

The region is also home to East Carolina University, which has a nursing, medical and dental school within a complex three miles from the construction site. ECU is trying to expand enrollment by 8,000 students over the next five years, adds Griffith.

The office building is valued at $8.5 million and the hotel is valued at $14.5 million, says Mark Fletcher, partner at Herndon, VA-based Nottingham Partners. The development company says that it is in talks with numerous banks that will provide financing. Average triple-net leasing rates are $19.50 per square foot for the medical office space and $21 per square foot for the retail space. No leases have been signed to date. The broker representing the project is Mike Waldrop of Kittrell, Armstrong and Waldrop LLC.