Trinity Capital Advisors has sold the first three of what will be seven buildings at Eastgate 540, a trophy-quality industrial park that will soon span 1.2 million square feet in metropolitan Raleigh, N.C.
Trinity sold the three facilities to BentallGreenOak for a total of approximately $111 million, according to Wake County records, and has arranged to sell the remaining four structures to the buyer upon their completion.
Located in Knightdale, N.C., Eastgate 540 sits in Raleigh’s highly active East Wake industrial submarket. The sale comes a little over two years after Trinity Capital acquired Eastgate 540—a single-building property at the time, surrounded by a mass of developable land—in a $14.3 million transaction. The company immediately commenced its plan to transform the property into a premier industrial campus by adding new state-of-the-art facilities.
Eastgate 540 was meant to be held for a longer term; the commencement of the asset’s disposition comes four years ahead of schedule.
“It’s purely a story of being in a high-growth market in Raleigh-Durham, with the population growth and also the high number of educated workforce we have here that do a lot of online ordering, so that drives a high demand for warehouse space,” Jeff Sheehan, Partner, Trinity Capital Advisors, told Commercial Property Executive. “And really, we leased it as fast as we could build it. We believed in the original investment in the industrial market, but we had no idea what kind of tailwinds there really were.”
Eastgate 540 will see two additional facilities reach completion in August and October 2021, and the remaining two will deliver in April and May 2022. The three completed buildings and three under-construction projects are 94 percent leased. Preleasing for the seventh and final building at Eastgate 540 is currently underway. Trinity Capital is relying on the JLL Capital Markets team of Patrick Nally, Pete Pittroff, Dave Andrews for representation in the sale transaction with BentallGreenOak.
The cycle continues
Although Trinity Capital is in the position of making an earlier exit than originally expected at Eastgate 540, the value-add investor is hardly at loose ends. “We’ve got several other projects where we’re under construction across the Southeast and continue to remain bullish,” Sheehan said.
Trinity Capital’s industrial projects that are currently underway at various stages account for a total of 4.6 million square feet. Among the endeavors are TradeParkEast in Palmetto Commerce Park in metropolitan Charleston, S.C. The company announced the groundbreaking on the 850,000-square-foot development just weeks ago in late June.