Durham office building sold at a steep discount. It’s now getting a makeover.
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- Durhamite Holdings bought a 140,000-sq-ft office at steep discount in Durham.
- Renovations include lobby upgrades, amenity spaces, and coworking offices.
- Two new tenants signed leases as office supply drops across Durham market.
A 140,000-square-foot office building in Durham’s University Hill neighborhood recently sold at a steep discount.
It’s now getting rebranded with a new name — Durhamite SouthCourt — and a makeover, said its owners, Durhamite Holdings, a real estate investment and management firm based two miles south of the site.
“Extensive renovations are underway,” executive director Jonathan Dayan said in a release.
Among them: a redesigned main lobby, exterior improvements, a multipurpose room for tenant events and meetings, and a new amenity complex featuring a lounge, game room, kitchen and bar.
The firm will also debut Orenge South Durham, a 17,000-square-foot coworking space on the building’s third floor with move-in-ready executive suites ranging from 689 to 2,363 square feet. It will serve as the sister location of Orenge Downtown Durham, which is also owned by Durhamite.
Crescent Communities recently sold SouthCourt to Durhamite Holdings for $11.8 million, after paying $22.35 million for it three years ago, The News & Observer previously reported.
“Our investment reflects a commitment to meeting the market where it is, but also anticipating where it’s headed,” Dayan said.
Already, it appears to be paying off.
Amid record-high vacancies, Durhamite has landed two new tenants, signaling a possible shift in the market.
Remington & Vernick Engineers (RVE), an engineering consulting firm and Gameday Men’s Health, a personalized men’s wellness service, will move in this month.
And for the first time since 2011, the region’s construction pipeline is empty, according to JLL’s first-quarter market report.
With fewer new developments coming online, “thoughtfully re-positioned office space like Durhamite SouthCourt are becoming increasingly competitive,” said JLL managing director Dennis Hurley, the building’s leasing agent.
