A Charlotte developer is targeting a Raleigh submarket with plenty of momentum.
Beacon Partners has acquired Dock 1053 from Grubb Ventures for $35 million, according to Wake County deed records. The off-market transaction came about after Beacon bought the warehouse property at 2315 Atlantic Ave. — directly north of Dock 1053 — in May for $20.75 million. The combined assessed value for the two properties is $36.26 million.
The area where East Whitaker Mill Road meets Atlantic Avenue in Midtown has been changing fast in recent years with developments like Raleigh Iron Works and East End Market taking shape. Dock 1053, a mixed-use development that sees plenty of foot traffic, sits on the corner of the busy intersection.
Dock 1053 is an adaptive-reuse project that is 97 percent leased with businesses including anchor tenant Murphy’s Naturals, food and beverage spots Hummingbird and Lynnwood Brewing, a barber shop and a catering company. Two spaces totaling 6,000 square feet are available for lease.
Walker Gorham, managing partner at Beacon, said the company gave Grubb Ventures an unsolicited offer for the 181,000-square-foot site after buying the Atlantic Avenue property. It “ultimately ended up working out," he said.
“We feel like there’s significant momentum in this little submarket, in large part based off of what the team at Grubb has been able to accomplish at Dock 1053 and then subsequently at Iron Works," Gorham said. "But we see there being continued development occurring candidly all around this intersection, and our hope is that this continues to evolve as one of the true destination submarkets with pedestrian oriented connectivity, both to the greenway, but also to some of the adjacent neighborhoods."
Beacon Partners plans to invest “several million dollars” into performing upgrades at Dock 1053 including landscaping, cosmetic improvements and updates to the common areas. One of those common areas is an interior corridor that leads to a courtyard. Gorham said many people don’t know about it. The entrance to the hallway is to the left of Trig Modern where Beacon will be providing signage about the interior businesses and courtyard.
The upgrades will start this fall and are expected to take four months to complete.
At 2315 Atlantic Ave., the 125,000-square-foot warehouse is nearly 100 percent leased with three of the four suites occupied. Gorham said the company will continue to operate the warehouse but has a long-term vision that includes evaluating the property for a redevelopment that would add density.
Beacon Partners has had a busy year, from acquiring more industrial space in Garner to buying land and starting construction on the next phase of the huge Apex Gateway project. The company also sold the first five buildings in Apex Gateway for $190 million and is planning a massive project with homes and industrial space in Durham.
The company is also starting the final phase of Beacon Commerce Park in Garner in partnership with HM Partners. The first three buildings in the park are fully leased.
Meanwhile, in the Atlantic Avenue corridor, a property adjacent to Raleigh Iron Works was recently rezoned to allow for a 20-story development.