By The Business Journal of the Greater Triad Area

Duke Energyâ¿¿s proposed $13.7 billion purchase of Progress Energy has already affected Progressâ¿¿s home town, apparently scotching a deal to buy Raleighâ¿¿s 17-story One Bank of America Plaza.

Sources tell our sister publication Triangle Business Journal that Highwoods Properties was days away from completing a deal to buy the downtown office building.

The deal would have been worth more than $48 million, the paper reports, and would have included a $10 million non-refundable deposit.

But when the deal was announced Jan. 10, Raleigh-based Highwoods â¿¿ also one of the Triad's largest landlords â¿¿ feared the merger could weaken demand for office space in Raleigh. Progress leases 800,000 square feet in two buildings downtown. And its headquarters building, at 411 Fayetteville St., is right next door to the Bank of America plaza.

While Progress says it will maintain a significant presence in Raleigh, TBJ reporter Amanda Jones Hoyle reports the ⿿fear is that a flood of space could open in the downtown office sector due to the merger.⿝

The Simpson Organization of Atlanta purchased the 367,225-square-foot One Bank of America Plaza building in 2005 for $47.1 million. It put the building back on the market last fall.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/triad/news/2011/01/24/dukeprogress-merger-kills-raleigh-deal.html?ana=thestreet
Copyright bizjournals.com 2010