Trinity Capital Advisors broke ground on a 280,000-square-foot building at Eastgate 540, the company’s industrial park in Knightdale, N.C., just outside Raleigh. The building marks the third structure at the park, which will ultimately encompass 1 million square feet of Class A industrial offerings in Raleigh’s East Wake submarket.
Trinity Capital’s commencement of Eastgate 540’s third building, located at 360 Spectrum Drive, comes just five months after the company acquired the asset from Scannell Properties for $14.3 million. At the time of the transaction, the park consisted of a single 150,000-square-foot building and ample developable land. Trinity wasted little time expanding the 30-acre campus; the developer immediately kicked off construction of a second 150,000-square-foot facility, which is scheduled to reach completion in December of this year.
The start of construction at 360 Spectrum Drive follows Trinity’s securing of an anchor tenant for the building. Eby-Brown, a convenience store supplier and wholesale food distributor, pre-leased 180,000 square feet of the planned facility in a deal orchestrated on the tenant’s behalf by Joe Zona and Doug Brock of Newmark Knight Frank. A Foundry Commercial team led by Jackson Rives is spearheading leasing at Eastgate 540. If all goes as planned, Trinity Capital will begin vertical construction in the first week of December. The real estate company expects to complete the facility in June 2020.
The Market Demands, Trinity Delivers
Leasing at Eastgate 540 has been fast and furious since Trinity Capital took possession of the property. Just prior to the closing of the acquisition transaction in May, Francini Marble & Granite inked a deal for 46,500 square feet at the park’s first building. During the third quarter, Trinity brought the building to full occupancy with CHEP USA’s 57,000-square-foot lease and All American Relocation’s deal for approximately 46,000 square feet. And at Eastgate 540’s second building, Trinity landed an early commitment for just over 46,000 square feet. Eastgate 540 can accommodate the development of three additional structures, which would bring the campus to its 1 million-square-foot maximum.
The Raleigh-Durham market is in sore need of industrial square footage. As noted in a third quarter 2019 report by Avison Young, the area continues to experience incredibly limited space opportunities in the face of unrelenting tenant demand. The area’s office sector is thriving as well. Trinity Capital recently joined forces with Starwood Capital Group and Vanderbilt Partners on the acquisition of the 645,000-square-foot Point at Research Triangle Park in Raleigh, N.C. The ownership team plans to transform the asset into a creative office campus via a $100 million redevelopment program.