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2 | Cushman & Wakefield
THIS OFFERING MEMORANDUM is intended solely for your limited use to determine whether you
wish to express an interest in 120 Wrenn Drive in Cary, NC, as more particularly described herein
(“Property”). This memorandum contains brief, selected information pertaining to the business affairs
of the Property’s owner (“Owner”) and has been prepared by Cushman & Wakefield Commercial
Real Estate Services, Inc., ("Cushman & Wakefield"), the Owner’s exclusive agent, primarily from
information supplied by the Owner. Although representatives of the Owner have reviewed this
memorandum, it does not purport to be all-inclusive or contain all of the information that a potential
investor may desire. Neither the Owner, nor any of its members, officers, directors, employees or
agents, nor Cushman & Wakefield make any representation or warranty, expressed or implied,
as to the accuracy or completeness of any of the information contained herein. The Owner and
Cushman & Wakefield disclaim any liability which may be based on such information, errors therein,
or omissions therefrom. All financial data contained herein is unaudited. The information contained
herein represents estimates based on assumptions considered reasonable under the circumstances.
No representations or warranties, expressed or implied, are made that the actual results will conform
to such information. There is no representation as to environmental conditions of the Property, or as
to any other aspect of the Property.
By your receipt of this memorandum, you agree that this memorandum and the information
contained herein are of a confidential nature and that you will hold and treat them in the strictest
of confidence, and that you will not, directly or indirectly, disclose or permit anyone else to disclose
this memorandum or any part of the contents in any fashion or manner detrimental to the interests
of the Owner.
This memorandum shall not be deemed an indication of the state of affairs of the Owner or constitute
an indication that there has been no change in the business or affairs of the Owner since the date
of preparation of this memorandum. Neither the Owner nor Cushman & Wakefield undertakes any
obligation to provide additional information or to correct or update any of the information contained
in this confidential memorandum.
For more information regarding the proposed transaction, please contact one of the following
individuals:
INVESTMENT CONTACTS
• • •
Robert Hoyt Vice President +1 919 439 5154
• • •
Ben Litke Associate
+1 919 439 5145 [email protected]
120 Wrenn Drive | 3
EXECUTIVE SUMMARY
INVESTMENT SUMMARY
Cushman & Wakefield is pleased to present investors, owner occupants and buyers interested in the prospect of a Build-to-Suit opportunity at 120 Wrenn Drive in Cary. The 0.35 acre property features frontage on Wrenn Drive and Kildaire Farm Road. With development in mind, the site is currently cleared, graded and has Town of Cary approval in place for a three-story office building (parking on the first level and 2 floors of office space). The purchase price includes all site and building plans. 120 Wrenn Drive is located at the intersection of Wrenn Drive and Kildaire Farm Road near its intersection with Cary Parkway. Walkable amenities include the Hibernian, Carrabba’s, Chipotle, Starbucks, Capital Bank and the US Post
Office.
INVESTMENT HIGHLIGHTS
• Rare land and building ownership opportunity in Cary
• High visibility from Kildaire Farm Road
• Pre-approved site plans for a 20,340 SF building
• Site and building plans with Town of Cary approval will convey tobuyer in a sale
• Convenient access to US-1, Hwy 64 and I-40
• The Raleigh-Durham MSA was ranked #1 Fastest Growing U.S. Cityfrom 2000-2012 by Forbes with a current population of 1.8 million.
• Unemployment rate for the Raleigh-Cary CSA was 4.5% as of October 2014, below the national average with continuing job growth.
Apex
164
23
97
97
39
97
96
70
70
70
98
1
1
96
42
55
39
64
64
401
4 0
401
39
39
581
98
98
98
96
96
87
87
1012
85
751
751
751
751
75
42
42
64
64
64
86
86501
1556
50
56
96
26
54
55
1
1
55 401
401
50
85
85
8540
40
40
54
540
540
540
440
40
40440
40540
147
50
86
64
264
264
64
70
70
70
23
401
70
401
50115
70BYP
70BYP
70BUS
1BYP
64BUS
264ALT
6BYP
55BYP
54
Neuse
LakeWheeler
LakeJohnson
JordanLake
HawRiver
LakeBenson
River
GreshamsLake
LakeCrabtree
FallsLake
River
Neuse
RiverLittle
River
Little
RaleighEast
Airport
HoraceWilliamsAirport
Scale: Approximate Miles
0 .5 1 2 3 4
50115
50115
50115
50115
120 WRENN DRIVE
Acreage: 0.35
SALE PRICE: Call For Pricing
Raleigh
Cary
4 | Cushman & Wakefield
SITE
Address 120 Wrenn Drive
Jurisdiction Town of Cary
Acreage 0.35 acre
Real Estate ID 0763339714
Current Zoning PDD Major - Planned Development District
Proposed Zoning
Link to Current and Proposed Zoning for the Property on the Town of Cary Zoning Website: https://www.townofcary.org/Assets/Planning+Department/Maps/Zoning+Map.pdf
PARKING Proposed 23 spaces onsite and shared parking with retail tenants
BUILDING
Construction Date TBD - Projected Delivery 12-18 months from commencement
Square Footage Proposed 20,340 SF
Number of FloorsProposed 3-story, including first floor covered parking and 2 floors of office space
Construction Type Steel with brick stone facade
UTILITIES
Water Town of Cary
Sewer Town of Cary
Electric Duke Energy
Telecommunications Time Warner
PROPERTY DESCRIPTION
EXTERIOR LOBBY RENDERING
120 Wrenn Drive | 5
WRENN DRIVE
KIL
DA
IRE
FA
RM
RO
ADUS POST
OFFICE
120 WRENN DRIVE
GOODBERRY’S
CARRABBA’S
FIREHOUSE SUBS CHIPOTLE
6 | Cushman & Wakefield
PROPERTY DESCRIPTIONPROPOSED BUILDING FLOOR PLANS
1st Floor: Parking Garage 2nd Floor: 10,170 RSF
OFFICE SPACE
OPEN BELOW
OFFICE SPACE
WC WOMEN
WC MEN
3rd Floor: 10,170 RSF
OFFICE SPACE
WC WOMEN
WC MEN
*Owner has site plan approved from Town of Cary.
120 Wrenn Drive | 7
PROPERTY DESCRIPTIONPROPOSED BUILDING ELEVATIONS
EAST ELEVATION
WEST ELEVATION
NORTH ELEVATION
SOUTH ELEVATION
North Elevation
EAST ELEVATION
WEST ELEVATION
NORTH ELEVATION
SOUTH ELEVATION
East Elevation
West Elevation
EAST ELEVATION
WEST ELEVATION
NORTH ELEVATION
SOUTH ELEVATION
EAST ELEVATION
WEST ELEVATION
NORTH ELEVATION
SOUTH ELEVATION
South Elevation
8 | Cushman & Wakefield
LOCATION OVERVIEW
DRIVING TIMES
Apex
164
23
97
97
39
97
96
70
70
70
98
1
1
96
42
55
39
64
64
401
4 0
401
39
39
581
98
98
98
96
96
87
87
1012
85
751
751
751
751
75
42
42
64
64
64
86
86501
1556
50
56
96
26
54
55
1
1
55 401
401
50
85
85
8540
40
40
54
540
540
540
440
40
40440
40540
147
50
86
64
264
264
64
70
70
70
23
401
70
401
50115
70BYP
70BYP
70BUS
1BYP
64BUS
264ALT
6BYP
55BYP
54
Neuse
LakeWheeler
LakeJohnson
JordanLake
Haw
River
LakeBenson
River
GreshamsLake
LakeCrabtree
FallsLake
River
Neuse
RiverLittle
River
Little
RaleighEast
Airport
HoraceWilliamsAirport
Scale: Approximate Miles
0 .5 1 2 3 4
50115
50115
50115
50115
Raleigh
Cary
Durham
Morrisville
ResearchTriangle
Park
Chapel HillCarrboro
US POST OFFICE
KIL
DA
IRE
FA
RM
RO
AD
WRENN DRIVE
GOODBERRY’S
CARRABBA’S
FIREHOUSE SUBS CHIPOTLE
120 WRENN DRIVE
A
B
E
F
C
D
DURHAMA WESTERN WAKE MEDICAL CENTERDRIVING TIME: 4 MINUTES
BDRIVING TIME: 4 MINUTESCARY PARKWAY & US-1
EDRIVING TIME: 21 MINUTESRESEARCH TRIANGLE PARK
C
DRIVING TIME: 17 MINUTESRDU INTERNATIONAL AIRPORT
DDRIVING TIME: 18 MINUTESRALEIGH, NC
FDRIVING TIME: 26 MINUTESDURHAM, NC
120 Wrenn Drive | 9
RALEIGH-DURHAM (“TRIANGLE”) ACCOLADES
LOCATION OVERVIEW
Apex
164
23
97
97
39
97
96
70
70
70
98
1
1
96
42
55
39
64
64
401
4 0
401
39
39
581
98
98
98
96
96
87
87
1012
85
751
751
751
751
75
42
42
64
64
64
86
86501
1556
50
56
96
26
54
55
1
1
55 401
401
50
85
85
8540
40
40
54
540
540
540
440
40
40440
40540
147
50
86
64
264
264
64
70
70
70
23
401
70
401
50115
70BYP
70BYP
70BUS
1BYP
64BUS
264ALT
6BYP
55BYP
54
Neuse
LakeWheeler
LakeJohnson
JordanLake
Haw
River
LakeBenson
River
GreshamsLake
LakeCrabtree
FallsLake
River
Neuse
RiverLittle
River
Little
RaleighEast
Airport
HoraceWilliamsAirport
Scale: Approximate Miles
0 .5 1 2 3 4
50115
50115
50115
50115
Raleigh
Cary
Durham
Morrisville
ResearchTriangle
Park
Chapel HillCarrboro
Best Place for Business and Careers in 2014
(Raleigh-Cary)
Forbes (July 2014)
Best Large City in the U.S. for
Working Women in 2015
(Durham)Nerdwallet (March 2015)
The Brookings Institution (Jan 2015)
Best Economic Performance
(Raleigh-Cary)
Labor Market 150 Index (Feb 2015)
Among 29 Cities All
Twentysomethings Should Pick Up
and Move To (Raleigh)
Buzzfeed (March 2015)
#1
#2
Fastest Growing Large Metro through 2030
(Raleigh)
#2 Best Labor Market in the U.S. (Raleigh-Cary)
#2 Forbes (Aug 2014)
Best City for Young Professionals
(Raleigh-Cary)
#1
#3
Top Technology Markets in the U.S. (Raleigh-Durham)Urban Land Institute
(2015)
#3 #3 Among Best U.S. Cities for College Students -
Mid-Size Metros (Raleigh-Cary)
American Institute for Economic Research (October 2014)
#4Best Metro for STEM
Professionals WalletHub (Jan 2015)
#8 Among America’s 50 Best Cities to Live
(Cary)24/7 Wall St. (September 2014)
UN Population Division (Aug 2014)
Recent Raleigh-Durham Accolades“RALEIGH-DURHAM RANKED #10 U.S. MARKET TO
WATCH”Urban Land Institute, 2015
Top 5Best City for Young
Entrepreneurs (Raleigh-Durham)
Credit Donkey (Feb 2014)
10 | Cushman & Wakefield
120 WRENN DRIVE IS LOCATED IN THE CARY SUBMARKET, THE TRIANGLE’S SECOND LARGEST AND CENTRALLY LOCATED SUBMARKET.
120 Wrenn Drive | 11
12%
14%
16%
18%
20%
22%
2011 2012 2013 2014 2015
10 Year Average = 16.1%
$20.30
$20.50
$20.70
$20.90
$21.10
$21.30
$21.50
0
100
200
300
400
500
600
2011 2012 2013 2014 2015Net Absorption, '000s Asking Rent, $ PSF
MARKET OVERVIEW | OFFICE MARKET
OFFICE MARKET INDICATORS *Arrows = Current Qtr Trend
RALEIGH-DURHAM OFFICE 3Q 15
NET ABSORPTION 345,440
VACANCY 13.7%
UNDER CONSTRUCTION 1.36M
ASKING RENT$21.57
OFFICE OVERALL VACANCY
OFFICE NET ABSORPTION/ASKING RENT 4Q TRAILING AVERAGE
TRIANGLE MARKET OVERVIEW
The Raleigh-Durham region continues to demonstrate remarkable vitality, drawing accolades across
the spectrum of economic and lifestyle indicators. The technology and life science sectors continue
to shine – the Triangle was the #4 market in the nation for tech jobs, and led a surge in funding for
life science companies that boosted North Carolina’s start up investment by 71 percent year over year.
Despite a handful of larger corporations announcing layoffs that impacted their Triangle headcounts,
the region maintained the lowest 12 month average unemployment rate since 2007, and added about
20,000 jobs since the beginning of 2015.
MARKET OVERVIEW
Robust leasing activity fueled third quarter net absorption of 345,000 SF and brought year-to-date
totals to 1.4 million SF, a performance surpassed only once before in the past decade. The overall office
vacancy rate declined by 46 basis points (bps) quarter over quarter to an eight year low of 13.58%.
A flurry of leasing activity further whittled the region’s stock of large, 2nd generation availabilities :
TrialCard took 73,014 SF at 2250 Perimeter Park Drive, Genband backfilled the remaining 71,253 SF of
Quintiles’ former space at Berrington Center, and Fidelity took down the entire building at Danbury
Hall. Landlords may rejoice as the overall vacancy rate in the RTP/I-40 submarket plummeted by
240 bps as a result, but large users could be left scrambling as their list of existing options rapidly
approaches zero.
The space shortage is especially dire among Class A buildings. The Class A vacancy rate has held
below the market equilibrium of 10% for 6 consecutive quarters, and ticked down again to 8.7%, the
lowest rate the market has recorded since 2001. Large blocks of existing Class A space are practically
non-existent. There are only two blocks of 2nd-generation Class A space greater than 75,000 SF
currently available in the entire Triangle: 6501 Weston Pky and Colonnade II. The only recent delivery
with a large block of new space is Charter Square, which has 79,065 contiguous SF still available. The
shortage of Class A availabilities of any size is approaching crisis levels in the region’s most desirable
submarkets. Robust organic growth and the handful of headliner transactions mentioned above
brought the RTP/I-40 Class A vacancy rate down 144 bps to 7.38%. Class A vacancy in Downtown
Durham fell to a vanishingly slim 1.79%.
12 | Cushman & Wakefield
MARKET OVERVIEW | OFFICE MARKET
SUBMARKET COMPARISON AVERAGE CLASS A RENT DIFFERENCE FROM THE TRIANGLE MEAN
-$2.50
-$1.50
-$0.50
$0.50
$1.50
$2.50
$3.50
$4.50
US 1 RTP/I-40 Falls of Neuse CaryS. Durham W. Raleigh US 70 CBD RaleighSix Forks Orange County CBD Durham
So it should come as no surprise that Class A asking rents are climbing to unprecedented highs.
Still, while all submarkets are experiencing some growth, there is an increasing differential in
rates between submarkets. The average asking rent for Class A space in downtown Durham, the
Triangle’s priciest location, is a staggering $5.86 higher than the average rate in US 1/Capital
Blvd, the region’s most affordable submarket. And rents in the central business districts are not
only significantly higher than in suburban submarkets, but are also growing at faster rate, with
year over year growth of 7.7% versus 2.5%, respectively.
OUTLOOK
• Class A vacancy rates should hold steady as the handful of new projects deliver over the
next few quarters; pent up demand seems well able to contend with a still-moderate supply
pipeline
• Class B and flex will continue to see significant net absorption while there is insufficient
Class A space to meet demand.
• Rental rate growth shows no sign of slowing and concessions have all but disappeared in
prime submarkets in what is now truly a landlord’s market.
120 Wrenn Drive | 13
MA
RK
ET
OV
ER
VIE
W
TOTAL BLDGS
INVENTORYDIRECTVACANT
VACANCY RATE
CURRENT NETABSORPTION
PAST 4 QTRS NET
ABSORPTION
QUARTER COMPLETION
UNDER CONSTRUCTION
AVERAGE ASKING RENT
(ALL CLASSES)
AVERAGE ASKING RENT
(CLASS A)
SUBMARKET
Cary 129 6,348,654 705,013 11.1% 17,840 600,233 0 0 $21.19 $22.20
Downtown Durham 58 3,403,801 172,466 5.1% 19,999 140,250 0 284,000 $24.73 $27.76
Downtown Raleigh 83 5,032,277 609,377 12.1% -23,913 -89,786 0 12,729 $23.85 $25.24
Falls of Neuse 76 3,066,465 416,861 13.6% 25,574 73,700 0 0 $19.86 $22.14
North Durham 33 1,385,790 659,095 47.6% -18,699 -38,669 0 0 $17.50 N/A
Orange County 34 1,490,028 121,858 8.2% 18,588 60,615 0 156,000 $23.87 $25.95
RTP/I-40 Corridor 146 11,539,518 1,943,294 16.8% 269,154 341,654 0 192,225 $20.07 $21.95
Six Forks 59 3,292,044 329,838 10.0% 34,597 59,022 0 614,892 $22.84 $25.64
South Durham 37 1,809,137 202,544 11.2% 11,414 73,873 0 0 $20.50 $23.04
US 1/Capital Boulevard 47 2,418,714 423,793 17.5% 46,960 199,443 0 0 $19.54 $21.90
US 70/Glenwood Avenue 71 3,787,207 409,108 10.8% -32,857 149,334 0 0 $22.33 $24.13
West Raleigh 90 5,423,533 630,303 11.6% -16,776 157,610 103,000 104,988 $22.89 $23.93
TRIANGLE MARKET TOTALS
Class A 370 31,992,785 2,780,236 8.7% 186,685 1,602,621 103,000 1,364,834 $23.69 N/A
Class B 430 15,553,790 3,644,836 23.4% 119,388 302,370 0 0 $18.20 N/A
Class C 98 2,300,420 342,760 14.9% 39,367 -27,032 0 0 $15.74 N/A
TOTAL 898 49,846,995 6,767,832 13.58% 345,440 1,877,959 103,000 1,364,834 $21.57 $23.69
Office asking rents converted to Full Service
14 | Cushman & Wakefield
3015 CARRINGTON MILL BOULEVARD | MORRISVILLE, NC | +1 919 789 4255 | CUSHMANWAKEFIELD.COM
Cushman & Wakefield is the exclusive agent for the sale of this property and, as such, will act as the Seller’s Agent. Consequently, the prospective purchaser should not disclose any confidential information to Cushman & Wakefield.
This Offering Memorandum was prepared by Cushman & Wakefield, and has been reviewed by Seller. It contains selected information pertaining to the Property and does not purport to be all-inclusive or to contain all of the information that a prospective purchaser may desire. All financial projections are provided for general reference purposes only and are based on assumptions relating to the general economy, competition, and other factors that, therefore, are subject to material change or variation. An opportunity to inspect the Property will be made available to qualified prospective purchasers.
In this Offering Memorandum, certain documents, including leases and other materials, are described in summary form and do not purport to be complete nor, necessarily, accurate descriptions of the full agreements involved, nor do they constitute a legal analysis of such documents. Interested parties are expected to independently review all documents.
This Offering Memorandum is subject to prior placement, errors, omissions, changes, or withdrawal without notice and does not constitute a recommendation, endorsement, or advice as to the value of the Property by Cushman & Wakefield, or the Seller. Each prospective purchaser is to rely upon its own investigation, evaluation, and judgment as to the advisability of purchasing the Property described herein.
Seller expressly reserves the right, at its sole discretion, to reject any or all expressions of interest or offers to purchase the Property and/or to terminate discussions with any party at any time with or without notice. Seller shall have no legal commitment or obligation to any purchaser reviewing this Offering Memorandum or making an offer to purchase the Property unless a written agreement for the purchase of the Property has been fully executed, delivered, and approved by the Seller, and any conditions to Seller’s obligations thereunder have been satisfied or waived. Cushman & Wakefield is not authorized to make any representations or agreements on behalf of Seller.
This Offering Memorandum is the property of Cushman & Wakefield, and may be used only by parties approved by Cushman & Wakefield. The Property is privately offered, and by accepting this Offering Memorandum, the party in possession hereof agrees (i) to return it to Cushman & Wakefield, and (ii) that this Offering Memorandum and its contents are of a confidential nature and will be held and treated in the strictest confidence. No portion of this Offering Memorandum may be copied or otherwise reproduced or disclosed to anyone without the prior written authorization of Cushman & Wakefield and Seller. The terms and conditions set forth above apply to this Offering Memorandum in its entirety.
LIMITING CONDITIONS