506 e. ramseur street - downtown durham...

Marcus JacksonManaging Director of Urban Investments(919) 645-1428

PROPERTY OVERVIEW

Property Highlights

Downtown Durham Building For Lease

506 E. Ramseur StreetDurham, NC 27701

Budd-Piper Building

Marcus Jackson(919) 645·1428 (Office)(919) 616·3284 (Mobile)[email protected]

1001 Wade Avenue, Suite 300, Raleigh, NC 27605 · www.trademarkproperties.com · (919) 782·5552 (Office)

Vijay K. Shah, CCIM(919) 645·1425 (Direct)(919) 812·0964 (Mobile)[email protected]

Call For Deal Terms

16,595 SF Building

Picture to be replaced


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PROPERTY OVERVIEWDowntown Durham Building For Lease506 E. Ramseur StreetDurham, NC 27701

EXCEPTIONAL DOWNTOWN AND OVERALL TRIANGLE LOCATION

Downtown Durham

RTP

Raleigh-DurhamInternational Airport

Raleigh

• The site is strategically located in the rapidly revitalizing Downtown Durham market, which is only 5 miles from Research Triangle Park, while Downtown Raleigh is 14 miles from RTP.

• Site has easy access to Durham Expressway (Highway 147) and is less than a half mile from the first ramp system into Downtown for North Bound traffic traveling from the airport and RTP.

• Located within the Golden Belt District of Downtown, which is the last growth frontier in the rapidly revitalizing Downtown Durham.

• Site will be adjacent to the Dillard Station within the Durham-Orange Light Rail system, which will connect Downtown Durham to Duke University and Medical Center and Chapel Hill and University of North Carolina. The transit sales tax has been passed and the system was one of only two systems to secure approval by the Federal Transit Authority last year – planning is progressing with delivery likely in 2024 – 2025.

• Site is also directly between the planned new $60 million Police Headquarters and the Hendrick Chevrolet dealership, which will move within months. The Hendrick site, renamed Gateway Centre, is under contract for a 4 acre 308 unit multifamily development – its contract money is hard and Woodfield, the developer, has filed for site plan approval. The remaining land within this 12 acre tract will be mixed use to include high rise.

• The surrounding area is growing rapidly and a brewing operation has purchased a building at 705 E. Ramseur and has filed for permitting for a 6,000 sf brewery with public seating and a deck. A 15,301 SF arts and entertainment center is also planned for 305 S. Dillard Street, adjacent to Budd-Piper Roofing and at the corner of Dillard and Ramseur. At 806 E. Ramseur is the RL Downey Indoor Baseball Hitting facility.



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Downtown Durham Building For Lease506 E. Ramseur StreetDurham, NC 27701

WORLD CLASS OPPORTUNITY - DOWNTOWN DURHAM


• Since the year 2000, there has been $3.7 billion invested in the downtown area with the majority emanating from Duke University and its Medical Center. A simple breakdown also includes $279 million in new office buildings; $620 million in new multifamily; and public facilities totaling close to $300 million.

• There are 2,875 units of Class A apartments with an average rent per sf of $1.67 and average unit size of 899 sf. All units have been built since 2000 and 1,681 units have delivered since 2011. About 880 units are under construction and the only other active proposed project is by Woodfield at Gateway Centre. One condo project of 8 units has started, a proposed project of 102 units has commenced pre-selling and another project of 30 units has filed for site plan approval.

• The hotel market has sprung to life with 435 rooms under construction and 210 rooms proposed. The Aloft Hotel is closest to the site and is under construction at DPAC on 135 rooms.

• The success of the Durham Bulls AAA baseball team and Polstar’s ranking of DPAC as 3rd best performer in the country.

• Success of the American Tobacco campus, which includes over 1 million sf of office and retail space plus DPAC, the Ballpark, about 100 apartments and the under construction Aloft Hotel. The fame and national prominence of American Underground as a hotbed for entrepreneurial growth with its 175 start-ups: http://www.americanunderground.com/

• Downtown is nationally known for its restaurants: Tastiest Town in the South for 2013 by Southern Living Magazine. New York Times ran a feature piece last year: http://www.travel.nytimes.com/2013/01/20/travel/36-hours-in-durham-nc.html?pagewanted=all&_r=0

• Duke University and Medical Center’s prominence and their dramatic growth:• Just completed an $800 million expansion to its hospital – will hire 1,000 new employees and believes the local “domino impact” will be up to 5,000 jobs• Will grow its graduate schools by 1,000• Launched a $3.2 billion capital campaign in 2012 and have raised $2.3 billion thus far.


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DOWNTOWN DURHAM MOMENTUM AERIAL



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BUDD-PIPER ILLUSTRATION


Budd

BuddHendrick

(Planned Gateway Centre)

Hendrick

Planned LRT Station

Planned

Police HQ

County

Parking Lot

• The existing building was built in the 1940’s and includes about 3,000 square feet of office space with about 14,400 sf of warehouse and sheet metal shop space. Clear heights range up to 16 feet and there is a basement of about 3,000 square feet. When the building was built it housed a brew-ery.

• There are three dock high doors and the building features a large parking area, which is rare in the parking constrained downtown.

• Under contract buyer is Citisculpt, based in Charlotte. Citisculpt acquired the 12.1 acre Hendrick parcel in July 2015 and plans over $200 million in mixed-use development. In October 2015, a 309 unit apartment community will commence construction.

• The building will be redeveloped with tenant infastructure in place

• CitiSculpt has retained Center Studios, based in Downtown Durham, to plan the redevelopment effort.


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THE CITY OF DURHAM - ACCOLADES


• Ranked #2 of America’s 20 Fastest Growing metropolitan areas

• Ranked #33 in the United States as a top city for Tech Startups

• Durham was recognized as #10 on the “Best Places for Business and Careers 2013”

• Durham was #6 on America’s Top 10 Cities for Small Business

• Durham was globally recognized for its economic potential, ranking #2 in the Top 10 Small American Cities of the Future

• Durham received the “Tastiest Town in the South’ title after a regional 2 month voting process by Southern Living Magazine

• Durham’s American Underground was selected by Google to become one of seven Entrepreneur Tech Hubs in the US and Canada

• Durham was rated #1 among America’s Leading Creative Class Metros

• Forbes named the Triangle as part of the 10 Up and Coming Cities for Entrepreneurs

• Rated # 1 in the country for pay equality by 247wallst.com: Female workers earned 97.4 percent of what men earned

• GQ Magazine recently voted Durham, NC The Best College Town in America (When Students are Gone)


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PROPERTY PHOTOS



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LEASING PLAN


Leasing Opportunities Available:Space A - 2,904 SF: 5 spaces at +/- 600 sf each / single levelSpace B - 4,896 SF: 165’ x 30’ / split levelSpace C - 8,795 SF: 167’ x 53’ / split level


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LEASING PLAN


Leasing Opportunities Available:Space A - 2,904 SF: 163’ x 18’ / single levelSpace B - 4,896 SF: 165’ x 30’ / split levelSpace C - 8,795 SF: 167’ x 53’ / split level


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DOWNTOWN LOCATION MAP



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DOWNTOWN EMPLOYMENT DRIVERS


DUKE UNIVERSITYThe University’s campus spans over 8,600 acres on three contiguous campuses. East

Campus is less than one mile to downtown Durham. The undergraduate school includes

about 6,500 students, while there are 7,800 graduate and professional level students.

Employment totals about 36,000 with about 30,000 housed in the downtown Durham

area.

Duke is the 7th wealthiest private university in America with $11.4 billion in cash and

investments in fiscal year 2014. Duke’s research expenditures in the 2013 fiscal year were

$993 million, the eighth largest in the nation. Duke ranked 8th on U.S. News & World

Report best national universities list. Duke’s various schools within the system that are

top ranked: Nursing (6), Medical School Research (8), Physician’s Assistant (1), Law (8) and

Business (13).

DUKE MEDICAL CENTERDuke University Medical Center has about 1,100 hospital beds and is closely connected

to Veterans Hospital across Erwin Road that houses 500 beds. The combined hospitals

are the reason Durham is called “The City of Medicine” worldwide. Duke’s hospital is ranked 14th on the U.S. News & World Report

list of best overall hospitals. Top 10 ranked specialties include Cardiology and Heart Surgery (6), Pulmonology (7), Ophthalmology

(8) and Urology (9).

The Medical Center has added in the last few years a new Duke Medicine Pavilion ($596 million); a new cancer center ($235 million)

and the Mary Duke Biddle Trent Semans Center for Health Education ($55 million). The Duke Eye Center Clinical facility is about

to complete its construction ($45 million). This brings the total recent completions by the hospital to $931 million. Duke initially

estimated that it would add over 1,000 new employees with a far greater local employment impact.

Not only has there been growth with the Medical Center, but the University also opened a new 200 acre campus last school year in

Kunchan, China, which is about 35 miles from Shanghai. Most of the future student growth domestically will be focused within its

graduate schools, which are likely to grow by 1,000 students.

DUKE DEVELOPMENTDuke University has in process $387 million worth of construction projects. In May 2015, the Duke trustees approved a $2.3 billion

budget for 2015-16. This budget included $494 million for major projects that include a new Student Health and Wellness Center, a

new engineering and physics facility, renovations to the David Thomas Center and ongoing renovations of the West Campus Union,

Perkins Library and Wallace Wade Stadium.

In 2013, Duke launched the Duke Forward Campaign with the goal to raise $3.25 billion by June 30, 2017. To date, $2.7 billion has

been raised. The campaign goal deployment plans are as follows:

• Endowment – 32%

• Other programmatic needs – 44%

• Annual Fund – 7%

• Facilities – 17%


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TOP 10 EMPLOYERS (NON-GOVERNMENT & EXCLUDING DUKE & NCCU ENTITIES)


# Employees Downtown Square Feet Comments

Measurement Inc. 400 225,000 Owns real estate

FHI 360 400 127,000 Non-profit

American Underground 300 72,000 Managed by American Tobacco

Burt’s Bees 300 71,156

Self Help Bank 240 102,269

Square One Bank 230 43,000

Bronto Services 205 80,000 Former Durham Tech Start-up

Avalara 200 40,000 New relocation - software

McKinney 170 55,000 Ad agency

Capital Broadcasting 160 36,525


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DURHAM EMPLOYMENT DRIVERS


RESEARCH TRIANGLE PARKRTP is one of the most prominent high-tech research and development centers in the United States. It was created in 1959 by state and local governments, nearby universities, and local business interests. The park covers 7,000 acres situated in a pine forest with 22,500,000 square feet of built space. The park is traversed by Interstate 40, the Durham Freeway and NC 540. RTP is five miles from Downtown Durham and 14 miles from Downtown Raleigh. It is managed by the Research Triangle Foundation, a private non-profit organization.

The park is home to over 190 companies employing 40,000 workers and 7,500 contractors with such major global organizations such as IBM, GlaxoSmithKline, Syngenta, RTI International, Fidelity, Credit Suisse and Cisco. The Park is inextricably linked to the three major universities in the Triangle of Duke, NC State and UNC and therefore linked to Downtown Durham. Research Triangle Foundation is now re-master planning the Park with the goal to create a more walkable environment for the companies housed there.

THE INNOVATION DISTRICTDuke University, Measurement Inc. and Longfellow Real Estate Partners have recently formed a venture and contributed their real estate holdings and leases into the venture to promote a “place where people co-create breakthroughs in science, technology, and entrepreneurship. Its labs, work space and urban vitality enable work that really matters.”

The new District will encompass 15 acres just north of West Village and adjacent to the Central Park District in downtown. It eventually will contain a total of 1.7 million square feet, including existing office space of 375,000 square feet (primarily Measurement Inc.’s employment base), existing lab space of 150,000 sf and plans for 50,000 sf of retail space as well as 300 residential units. Duke University has made a $90 million lease commitment to Longfellow (the lead developer) and recently occupied a large lab lease. In August 2015, Duke opened the headquarters for the “Innovation & Entrepreneurship” initiative within the Innovation District. The 15,000 sf space will house most of the 25 Duke Faculty and staff members assigned to the program. The facility will become a go-to destination where people with an idea or invention can get help in figuring out how to bring it to the marketplace. The Chairman of Duke’s Board of Trustees, David M. Rubenstein, substantially funded the venture. Rubenstein is also the Co-Founder of The Carlyle Group, a global alternative asset manager with $193 billion of assets under management.


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MAJOR RELOCATIONS INTO DOWNTOWNRelocation momentum has picked up over the past five to ten years with the following major examples:

• McKinney, a global advertising firm, which relocated from Downtown Raleigh to American Tobacco.

• Burt’s Bees, a global natural health products company based in American Tobacco. It relocated from Keystone Office Park, a traditional suburban park along Interstate 40 between RTP and Downtown Raleigh.

• James Scott Farin, a major law firm based in American Tobacco, who relocated from Imperial Center along I-40 and close to Keystone.

• FHI 360 (formerly Family Health International) that initially relocated 300 employees from RTP to American Tobacco in the fourth quarter of 2013.

• Avalara, a major Seattle-based developer of end-to-end sales tax compliance software, has established a major new hub in 2015 in Downtown Durham and leased 40,000 sf in Diamond View I at American Tobacco.

• CalStar, a manufacturer of sustainable brick and masonry, relocated its headquarters from Wisconsin to Downtown Durham in 2015 and will initially lease 7,000 sf in the Citizens Bank Building on Main Street.

• Nutanix, a cloud based computing provider, established a 80+ person hub in 16,000 sf of the Measurement Buidling in 2014

STRONG INTERNAL GROWTHDowntown is experiencing serious internal growth from existing companies. American Underground is a nationally recognized center of shared office space for start-ups and currently has about 180 companies operating out of its downtown facilities. The founder and operator of this entity is Capital Broadcasting, which owns American Tobacco campus. The Underground was founded in 2010 with 35 start-ups and provides an entire ecosystem to help maximize success of its occupants, including The Start-Up Factory, the most highly capitalized technology accelerator in the Southeast. It also includes Groundwork Labs, which an idea testing laboratory. In 2013, Google chose American Underground as its 7th “Google for Entrepreneurs Hub” in the country. As a result, Google provides extensive resources for the entrepreneur including Google software credits, technology access, connections to leading technology people, etc.

The strength of Downtown’s start-up and company expansion ecosystem is evidenced by an article on American Underground’s website titled $1 Billion, 6 Acquisitions, 24 months, Durham. “The recently acquired companies are Bronto Software (acquired by NetSuite for $200 million in Aug 2015), Appia (acquired by Mandalay Digital for $100 million), Automated Insights (acquired by Vista Equity Partners-owned STATS for an undisclosed amount), Square 1 Bank (acquired by Pacific West Bank for stock valued at $849 million), Two Toasters (acquired by Ticketmaster for an undisclosed sum) and DigitalSmiths (acquired by TiVo for $135 million).”


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The following are examples of internal growth and success within downtown:• Measurement Inc is a scholastic testing company that was started about 35 years ago in its founder’s Durham

home. It has grown to about 400 employees in Downtown and primarily in owned facilities within the Central Park district.

• Bronto Software was founded in 2002 in downtown by departing staff from the globally known software maker Red Hat. Today, it is a leading provider of cloud-based e-commerce marketing.

• Windsor Circle was founded in 2011 by departing staff from Bronto Software and has already become a major customer service retention software provider.

• Appia was founded in downtown in 2008 and this past year was sold for $100 million. It is the leading mobile user acquisition network in the nation.

• Shoeboxed is a premier provider of solutions for digitizing and organizing data. • Reverbnation connects artists to the music industry, founded in 2006, received $8.6 million funding.

NORTH CAROLINA CENTRAL UNIVERSITYNCCU is a public university within the State’s University System and includes 8,155 students. The campus is about 1 mile from downtown Durham. Total number of employees is 1,813.

The University has two state-of-the-art biotechnology research facilities, the Julius L. Chambers Biomedical/Biotechnology Research Institute (BBRI), and, The Golden Leaf Foundation Bio manufacturing Research Institute and Technology Enterprise (BRITE), which collaborate with pharmacy and biotech companies in nearby Research Triangle Park.U.S. News and World Report ranked NCCU School of Law as one of the 10 most popular law schools. National Jurist magazine ranked the law school as one of the top clinical opportunity programs and one of the most diverse.

506 e. ramseur street - downtown durham...

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