Bank of America plans to move its local offices from downtown to a new 18-story tower in North Hills that is scheduled to open in the first quarter of next year.
The Charlotte-based bank has also secured the naming rights to the building, which will be called Bank of America Tower when it opens.
Bank of America is leasing 57,000 square feet of the 300,000-square-foot building, which is being built on the east side of Six Forks Road between the 17-story CapTrust Tower and the First Citizens Bank building. The tower will be home to the offices of Bank of America, Merrill Lynch and U.S. Trust.
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The deal represents another major win for Kane Realty and shows how North Hills – with its dense mix of retail, office and residential spaces – has become a premier destination for many employers.
Bank of America now leases about 43,000 square feet in the 17-story One Bank of America Plaza building on Fayetteville Street, where it has its U.S. Trust wealth management offices and a branch on the first floor. The bank’s Merrill Lynch Wealth Management division also leases space in the Wells Fargo Capitol Center on Fayetteville Street.
Highwoods Properties, which owns One Bank of America Plaza, plans to rebrand the building once Bank of America relocates to North Hills. Skip Hill, head of Highwoods Raleigh division, said Bank of America was seeking to get its two wealth management groups in one location.
“While it’s an opportunity for BofA and its sister company Merrill to get together, it’s also an opportunity for us to continue rebranding this building,” he said.
Raleigh-based Highwoods acquired One Bank of America Plaza for $92.3 million a year ago, and is now in the process of spending millions to improve its facade and common areas. Bank of America leases about 11 percent of the 374,000-square-foot building, which is nearly 90 percent occupied.
Bank of America is the second tenant in recent months to announce that it is departing a Highwoods building for North Hills.
In May, Allscripts announced that it will move all of its roughly 1,000 employees in Raleigh to a new 12-story office tower that Kane Realty plans to build at North Hills. Allscripts now leases 304,000 square feet farther north on Six Forks Road in Highwoods Forum office park.
Allscripts, a developer of electronic medical records, will occupy nine floors, or 250,000 square feet, in the 330,000-square-foot Midtown Plaza tower, which is expected to open in the spring of 2017.
The building is to be constructed on the east side of Six Forks Road at the corner of Cardinal at North Hills Street and Church at North Hills Street.