Meridian Development Group acquired a 260,000 SF industrial property in a joint venture with Thackeray Partners. Welsh Property Trust sold the asset for $7.3 million. The warehouse is located at 224 N. Hoover, Durham, NC 27703.
Meridian plans to invest more than $1 million to modernize the property, including landscaping, exterior paint, signage and interior enhancements.
West Brother's Transportation Services, Inc., currently leasing the entire building, will downsize in September, freeing up 100,000 SF. Meridian has appointed Jackson Reeves with Foundry Commercial the property's leasing agent.
This is Meridian's third acquisition in the Raleigh area. Steven Kossoff, the managing director at the Tampa-based firm, keeps a close eye on the industrial market in the Raleigh-Durham area.
"The area's industrial leasing market is strong," said Kossoff. "The Class A industrial vacancy rate in the RTP submarket is less than 5% and demand is outstripping supply making this an ideal investment market. For this reason, coupled with year over year growth, Raleigh is considered to be in the top five best cities to invest in right now. Logistics, market conditions, strong population growth and other factors make this an ideal distribution and warehousing hub."
Chuck Valdez with Midas Commercial represented the seller. Meridian represented itself in the acquisition and Bank of North Carolina provided acquisition financing for the project.