The Dillon tower and retail buildings in downtown Raleigh sell for $236 million
The main housing and commercial tower building in Raleigh’s warehouse district known as The Dillon has been sold by owners Kane Realty Corp. and investment firm FCP for $236 million.
The 18-story building occupies a 2.5-acre block and contains 271 housing units, 221,300 square feet of office space and a parking deck. It was built to include preserved exteriors of the historic Dillon Supply warehouse building.
The building was sold to a client advised by MetLife Investment Management. Kane Realty did not disclose the buyer’s identity.
“This announcement is an important milestone in our partnership with FCP,” said John Kane, chairman and CEO of Kane Realty, in a news release. “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.”
“FCP is incredibly proud of our partnership with Kane Realty Corp. 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.
Weinberg said FCP identified the Raleigh-Durham region as a key investment market for real estate over a decade ago. FCP has a regional office in Raleigh and has completed more than 20 investments in residential and commercial properties in the area in the last 10 years. This includes the construction of new Research Triangle Park office building announced in January this year.
Restaurant and retail tenants at The Dillon include O-Ku Sushi, Oak Steakhouse, Barcelona Restaurant and Wine Bar, Weaver Street Market, Urban Outfitters, Heirloom Brew Shop, Shred415 and JoJa Nails.
The Dillon’s office tower is anchored by Arch Capital and also includes tenants Spaces, Stewart Engineering, Analog Devices, Inventure Civil, Medable and FMI Corporation.
