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Prudential Real Estate Investors agreed to enter a $54 million joint venture with Dominion Realty Partners to build Charter Square, an 11-story office property in Raleigh’s downtown central business district, the company announced today. PREI®, acting on behalf of institutional investors in its open-end, value-added commingled strategy, is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE: PRU).
“Raleigh has become one of the best cities to live, work and play making it comparable to other tech hubs in popular cities around the country,” said Soultana Reigle, managing director at PREI and portfolio manager of the firm’s value-added, open-ended equity commingled real estate strategy. “We chose to invest in Charter Square because of the growing popularity of Raleigh’s downtown business district, coupled with the rising trend among working professionals who now prefer to work in direct proximity to the 24-hour amenity base a city like Raleigh has to offer. These facts and the strength of Dominion Realty Partners make Charter Square a compelling investment opportunity for our fund.”
Technology sector growth in the region over the last decade has largely been focused on the suburban Research Triangle Park. With 40,000 workers, the RTP has transformed Raleigh into a tech hub similar to Seattle, Austin, San Francisco and Boston. More recently, downtown Raleigh has turned its efforts to draw employees to its urban core following a growing national trend among technology sector employees in which they prefer to be located in an urban “live, work and play” setting.
The 236,000 square-foot Charter Square building will be at the corner of Lenoir Street and Fayetteville Street, the main thoroughfare of the downtown business district. Since 2006, more than 200 new businesses have opened in the downtown submarket, and more than 1,200 apartments are currently under construction.
“Charter Square is the cornerstone of the revitalization of downtown Raleigh, and Dominion Realty Partners is proud to partner PREI to develop this 236,000 square foot speculative office building,” said Andy Andrews, CEO of Dominion Realty Partners, LLC.