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One Glenwood building in downtown Raleigh filling up, as Capital Bank moves in

Raleigh’s skyline is changing as more construction projects come to downtown

There are several large-scale projects currently under construction or near completion in downtown Raleigh, with many more expected to follow suit in the coming months.
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There are several large-scale projects currently under construction or near completion in downtown Raleigh, with many more expected to follow suit in the coming months.

With about four months until it opens to tenants, the One Glenwood building in downtown Raleigh is filling up quickly.

Capital Bank, which is moving its Raleigh headquarters to the seventh and eighth floors of the 10-story building, puts the tower at more than 80 percent leased, said Carl Reinke, vice president of property management and leasing at Heritage Properties, the developer of the property at Glenwood Avenue and Hillsborough Street.

“We obviously feel the market is extremely strong” and to be a “little more than four months from delivery and to be at north of 80 percent is great,” Reinke said in an interview.

Capital Bank will lease the two floors for a total space of 53,553 square feet, and the leasing deal means that the company will have signage on the building, the bank said in a news release on Monday.

The biggest tenant at the building is still the co-working company WeWork, which is leasing more than 80,000 square feet, Reinke said.

The One Glenwood space will accommodate Capital Bank’s existing staff in Raleigh and around 50 new staff members, giving the bank around 100 employees total, as it expands its operations in the city. The move is expected by second quarter of 2019.

Capital Bank is part of the Memphis, Tenn.-based First Horizon, which bought Capital Bank in 2017 through its First Tennessee Bank subsidiary. It was a deal that created the fourth-largest regional bank in the Southeast and consolidated the two banks’ presence in the Triangle, The News & Observer reported at the time.

The new Raleigh headquarters will house commercial, retail, private banking and business banking functions. Currently, the banks employees are scattered around the city, including in an office building on Glenwood Avenue near Crabtree Valley Mall.

The deal with Capital Bank comes as Maryland-based Heritage Properties look to build a second 10-story tower adjacent to One Glenwood.

The two towers, which would have a courtyard and a coffee shop between them, would be collectively called One Glenwood at Bloc 83, a reference to the fact that the company now controls one of the originally planned city blocks in downtown Raleigh, Reinke said. The block is now home to some older office buildings and the bar Dram & Draught.

Reinke said the success of One Glenwood has given the company confidence to continue building in the downtown area. He added that the company hopes to move fast on kickstarting the project.

“It all depends on our pre-leasing, but we are hoping, aggressively, (to open) by end of third quarter 2020, with construction beginning in second quarter of 2019,” he said.

Zachery Eanes: 919-419-6684, @zeanes
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