Federal Capital Partners® (FCP) announced the $37.5 million acquisition of Erwin Square Plaza, located at 2200 West Main Street in the master-planned Erwin Square Development of downtown Durham. The 238,792 square foot, 10-story building is flanked by two, two-story retail and office wings. Erwin Square Plaza is currently 96.2% occupied by predominantly long-term, credit-worthy tenants including Duke University and Duke University Health System-related companies and organizations.
FCP Managing Partner, Esko Korhonen, noted the firm’s intention to provide capital to reposition the property, saying, “Erwin Square Plaza is of very high quality and is well-located in downtown Durham, which has seen enormous growth and revitalization in the last 10 years. The Durham CBD is experiencing healthy demand for office space and the property has maintained a 95%+ occupancy since 2007. We look forward to renovating the property back to its institutional-grade potential and repositioning the important retail portion of the property.”
FCP now has a controlling interest or has provided financing for almost 2,000 apartments and more than 350,000 square feet of commercial space either operating or in development in the Triangle area, including the luxury loft community of West Village in downtown Durham.
Erwin Square Plaza sits on 7.5 acres between Duke University’s East and West campuses in downtown Durham and includes a total of 215,048 square feet of office space and 23,744 square feet of retail space. The building lobby features vaulted ceilings, art deco lighting and polished granite floors surrounded by solid mahogany wall panels.
Over the past 10 years, downtown Durham has undergone a remarkable resurgence, with walkable retail, lofts and apartments, fine arts centers and commercial growth contributing to the health of the new downtown. Adjacent to Erwin Square Plaza, The Shops at Erwin Mill and Circle Ninth Street, both scheduled for 2014 delivery, will add 303 luxury apartments, a Harris Teeter and a new Hilton Garden Inn, creating an inviting live-work-play environment. Additional upscale apartments will be added on both sides of the property in the near future through additional development. The building is located adjacent to the Durham Freeway and has immediate access to nearby I-85 and I-40, Duke University, Raleigh-Durham International Airport and the Research Triangle Park.
FCP extends its appreciation to Ben Kilgore at CBRE for his representation in the transaction.
About Federal Capital Partners
Federal Capital Partners (FCP) is a privately held real estate investment company that has invested in or financed more than $3.0 billion in assets since its founding in 1999. FCP is seeking debt and equity investments in commercial and residential real estate throughout the Mid-Atlantic region, including Washington DC, Maryland, Pennsylvania, Virginia, Delaware, West Virginia, New Jersey and the Carolinas. FCP buys assets directly as well as through joint ventures with local operating partners through equity, preferred equity or mezzanine debt investments.
In December 2012, FCP was recognized by PERE Magazine as one of the Top 10 Emerging Fund Managers. The firm, based in Chevy Chase, MD, manages $769 million of discretionary capital. FCP is currently investing FCP Realty Fund II, L.P., a $529 million commingled, discretionary fund closed in 2012. For further information on FCP, please visit www.fcpdc.com