A New York real estate firm has acquired Citrix System's new downtown Raleigh headquarters.
JMC Holdings bought the 171,000-square-foot property late last week from Cherokee Investment Partners and The Crown Co. Cherokee and Crown had invested tens of millions of dollars transforming the old Dillon Supply warehouse after buying it from Triangle Transit for just $3.2 million.
The purchase price wasn’t disclosed in the property records recording the transfer of ownership to JMC. Tom Darden, CEO of Raleigh-based Cherokee, declined to disclose the price.
Darden said JMC, which was founded in 2011, targets net-leased assets, or buildings that are occupied by a single user that has signed a long-term lease.
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“They’re an income-oriented investor,” Darden said of JMC. “They’re goal is to own a net-leased facility for a long period of time that needs no management or other activity.”
Darden noted that Cherokee’s focus is very different. The company mostly specializes in cleaning and redeveloping contaminated properties.
“For us to hold it long-term once it was stabilized and had a long-term lease, etc. didn’t make as much sense,” Darden said.
The development costs of the Citrix project were built into Citrix’s 15-year lease. The building is expected to eventually be home to 600 Citrix employees.
The Citrix building's sale was expected to set a Triangle office market record on a price-per-square-foot basis. That would put the price at more than $300 per square foot, or in the $60 million range.
The price reflects how attractive net-leased buildings have become to a certain segment of real estate investors.