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A Cary office campus has traded at a loss compared with its prior sale eight years ago. According to reporting cited from the Triangle Business Journal, CityPlat, in a joint venture with Good Harbor Commercial Real Estate, acquired the Parkwest office buildings along Weston Parkway from Adler Real Estate Partners for $10.3 million. Adler previously purchased the same assets in 2017 for $13.4 million, leaving a pricing gap of $3.1 million between the two transactions.
The Parkwest campus consists of two single-story office buildings, Parkwest One and Parkwest Two, located at 15501 and 15401 Weston Parkway, respectively. Parkwest One totals 46,569 square feet and is fully leased, providing the new ownership with stabilized in-place occupancy at that building. Parkwest Two offers 48,311 square feet of office space but is largely vacant, with just one tenant occupying roughly 10% of the property.
As part of its business plan for the campus, CityPlat intends to invest $1 million into capital improvements. The company has indicated that the planned work includes replacing each building’s roof and upgrading HVAC systems. These upgrades are aimed at addressing deferred maintenance and improving building systems across both Parkwest One and Parkwest Two.
The reporting notes that Parkwest Two, the 48,311-square-foot building that is mostly vacant, will be listed for sale with a goal of attracting an owner-occupier buyer. That approach reflects a potential shift in how the asset could be used going forward, moving from a multi-tenant leasing strategy toward a single-tenant ownership structure for that building, depending on buyer demand.
At the same time, it is also stated that Parkwest One, which is 46,569 square feet and fully leased, will be retained by CityPlat. Parkwest Two is likewise described as a single-story asset with 48,311 square feet of office space, and the article additionally notes that the company plans to keep Parkwest Two, creating some ambiguity around whether the long-term strategy is to sell or hold that building. No further clarification on the timing or execution of any potential sale of Parkwest Two is provided in the source text.
Beyond the purchase price, prior sale price, and planned capital improvements, the report does not disclose any financing details for the transaction, such as lenders, loan terms, or leverage levels. The article also does not provide information on cap rates, valuation metrics, or rental terms for existing tenants at Parkwest One, leaving the broader investment performance profile of the campus undisclosed.
The post CityPlat JV Buys Cary’s Parkwest Office Campus at Discount, Plans $1M in Upgrades appeared first on CRE Market Beat.
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