FCP, Kane Realty Sell Mixed-Use Raleigh Asset for $236M

The Dillon. Image courtesy of FCP

FCP and Kane Realty Corp. have sold The Dillon, a mixed-use Class A property in downtown Raleigh, N.C., for $236 million. The buyer was an institutional client affiliated with MetLife Investment Management.

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The Dillon added 221,300 square feet of office space, 52,600 square feet of retail, 271 multifamily units and a nearly 1,000-stall parking garage to Raleigh’s Warehouse District upon completion in 2018. Located at 223 S. West St., the 18-story, LEED Gold-certified structure occupies a full city block next to Union Station. The property replaced a 100-year-old warehouse.

FCP and Kane Realty had joined forces to break ground on the project in 2017, backed by a $103 million construction loan from PNC Bank. One year after delivery, the previous owners refinanced with a $140 million mortgage from the same lender in April 2019, CommercialEdge shows.

The property’s office space is fully leased, home to anchor tenant Arch Capital in addition to Spaces, Stewart Engineering and Inventure Civil. O-Ku Sushi, Oak Steakhouse and a number of other shops and restaurants fill out the retail component.

JLL worked on behalf of the seller in the deal. The team included Matthew Lawton, Ryan Clutter and Coleman Benedict, among others. Earlier in the year, Clutter assisted in the $80 million disposition of two mixed-use properties near North Carolina State University.