FCP® and Kane Realty Corporation announce the sale of The Dillon to an institutional client advised by MetLife Investment Management for $236 million. The Dillon is the first mixed-use development of its kind in downtown Raleigh; its 18 stories encompassing 221,300 square feet of LEED Gold-certified Class A office space, 52,600 square feet of activated retail, two six-story apartment buildings totaling 271 units and a 994-space parking deck. Portions of the 100-year old Dillon Supply warehouse building were preserved and incorporated into its new life to create a differentiated product that successfully attracted a diverse tenant base. The award-winning property occupies an entire 2.5-acre city block and is the flagship Transit Oriented Development within Raleigh’s Warehouse District. The Dillon’s office space, featuring panoramic views of downtown Raleigh and the surrounding cityscape, achieved 100% leased within nine months of completion. Kane Realty served as the developer, property manager and leasing agent for The Dillon.
“FCP is incredibly proud of our partnership with Kane Realty Corporation and our shared vision for the remarkable architectural, contextual and lifestyle impact The Dillon has brought to Raleigh, particularly within the Warehouse District where it has been a catalyst for growth,” said FCP Principal, Erik Weinberg. “FCP identified the Raleigh/Durham region as an important growth market in the Sunbelt more than a decade ago. Our confidence in this market has only continued to grow and with ULI recently naming Raleigh as the number 1 U.S. market to watch for investment and development, we expect to continue to be active here even as we successfully conclude our business plan for The Dillon.” FCP has a regional office in Raleigh and has completed more than 20 investments – both multifamily and commercial – since entering the market in 2010.
“This announcement is an important milestone in our partnership with FCP,” said John Kane, Chairman and CEO of Kane Realty Corporation. “The Dillon was truly a game changer for downtown Raleigh’s Warehouse District. The creativity and vision behind this distinctive project has brought more vibrancy and renewed energy to the area. From the premier retail to the innovative office spaces, we are proud of this landmark project and look forward to its continued success in the future.”
Retail tenants at The Dillon include O-Ku Sushi, Oak Steakhouse, Barcelona Restaurant and Wine Bar, Weaver Street Market, Urban Outfitters and Heirloom Brew Shop, Shred415 and JoJa Nails. The Dillon’s Class A office tower is anchored by Arch Capital and includes tenants Spaces, Stewart Engineering, Analog Devices, Inventure Civil, Medable and FMI Corporation.
FCP and Kane Realty extend their appreciation to Matthew Lawton, Ryan Clutter, Coleman Benedict, Andrea Howard, Jeff Glenn, Chris Lingerfelt, Allan Lynch, Tom Kolarcyzk, John Mikels, Daniel Flynn and Sara Wagman of JLL.
FCP® is a privately held real estate investment company that has invested in or financed more than $8.3 billion in assets since its founding in 1999. FCP invests directly and with operating partners in commercial and residential assets. The firm makes equity and mezzanine investments in income-producing and development properties. Based in Chevy Chase, MD, FCP invests both its commingled, discretionary funds and separate accounts targeted at major real estate markets in the United States. For further information on FCP, please visit www.fcpdc.com.
ABOUT KANE REALTY CORPORATION
Kane Realty Corporation (KRC) is a full service real estate development and management company focused on office, retail, multi-family and mixed-use properties of the highest quality. Based in Raleigh, NC since 1978, KRC is dedicated to the goal of creating irresistible places where people will naturally want to gather. Through meticulous attention to detail in every aspect of the property from design and construction management to leasing and property management, Kane’s mission is to build places that improve the quality of life of their businesses, their employees, residents and visitors. For more information, please visit KaneRealtyCorp.com.