Prologis Buys Research Triangle Industrial Park for $80M

September 25, 2024

Investment Industrial News Raleigh-DurhamMoreSoutheast

JLL Capital Markets arranged the sale of the recently completed complex.

Prologis has acquired Alexander Commerce Park, a three-building, 441,072-square-foot logistics portfolio in Raleigh-Durham’s Research Triangle Park. The property sold for $80.2 million, according to public records.

Prologis has acquired Alexander Commerce Park, a three-building industrial complex in Raleigh-Durham’s Research Triangle Park. *Image courtesy of JLL*

JLL Capital Markets represented the seller, a partnership between Trinity Capital Advisors and Nuveen Real Estate.

The Class A portfolio is fully leased to four diverse tenants, including major regional and international users. Delivered in 2023, it features rear-load logistics facilities with 32-foot clear heights, ESFR sprinklers, LED lighting, as well as abundant auto and trailer parking.

Avison Young’s second-quarter logistics report for the area stated that Raleigh-Durham is reaching a healthier balance between supply and demand as deliveries continue and availability reaches a reasonable 5.4 percent.

According to the report, just three years ago, vacancy stood at 2.2 percent, with demand so strong that construction began on nearly 6 million square feet of space, accounting for approximately 8.5 percent of the inventory at the time.

Avison Young also noted that despite the arrival of this additional supply and the higher availability in the market, rental rates have increased by 61.7 percent since the first quarter of 2023. Occupiers across the nation are grappling with rising commodity costs, making it harder for them to operate and afford higher rental rates. While the Raleigh-Durham market is stronger compared to previous years, broader economic conditions could still improve, according to the report.

A premier location in the Research Triangle Park

At 1730-1760 TW Alexander Drive in Durham, Alexander Commerce Park is along the northeastern edge of the 7,000-acre public-private Research Triangle Park. It is considered among the country’s top dedicated research parks, which retain many Fortune 500 firms and have an industrial submarket occupancy higher than 99 percent.

“The Raleigh-Durham industrial market is seeing rents continue to increase even as more product is coming to market due to the heightened demand to be located close to major state transportation avenues such as I-40, I-440, and I-540 and national highways such as I-81, I-85 and I-95 that connect the East Coast,” Avison Young Senior Vice President Evan Sassaman told Commercial Property Executive.

“Industrial space in the Raleigh-Durham market has attracted large institutional investors and corporations over the past few years due to this growing demand.”

Pete Pittroff, senior managing director, along with Dave Andrews, senior director, and Zachary Lloyd, associate, led the JLL Investment Sales and Advisory team.

In May, Prologis sold a roughly 5.1 million-square-foot industrial portfolio in metro Minneapolis-St. Paul, to multiple limited liability companies affiliated with EQT Exeter. CBRE arranged the sale.