A Chicago real estate investment company has purchased a 12-story building near Duke University Hospital for $142 million.
Harrison Street Real Estate Capital acquired the 327,160-square-foot Hock Plaza building, located at 2424 Erwin Road, from the Houston-based real estate firm Hines at the end of last year, according to county property records.
The price point – $141.9 million – places the building’s value at more than $433 per square foot.
Real estate services firm CBRE, which arranged the sale, said the selling price was a record price per square foot in North Carolina. The Central Durham submarket – which includes downtown Durham and areas around Duke University – has one of the lowest office vacancy rates in the country at 1.78 percent, according to CBRE.
“This offering was a rare investment opportunity and we received strong interest from a variety of domestic pension funds, foreign capital and healthcare-focused groups,” Jay O’Meara, senior vice president of CBRE Capital Markets, said in a statement. “The scarcity and quality of this asset in an irreplaceable location led to this successful transaction at what is a record price per square foot in the state of North Carolina.”
Hines previously purchased the building in 2010 for around $98 million. Hines said it is still acting as a property manager for the building, which opened in 2004. The 2.5-acre property on which Hock Plaza is located also has a 1,057-space parking garage.
Hock Plaza is home to 34 different Duke University medical institutes and centers, including Duke Cancer Institute and the Center for Autism and Brain Development, according to the real estate services firm CBRE.