Ascentris and Grubb Ventures Expand Footprint in Raleigh, NC; Form JV to acquire a Class A Multifamily Community and to Develop an Additional Parcel
Raleigh, NC (January 16, 2020) – Ascentris, on behalf of a fund it manages, announced today it has expanded its relationship with Grubb Ventures through the acquisition of Sojourn and an additional land parcel within the vibrant mixed-used community of Glenwood Place located in Raleigh, NC. Sojourn consists of an existing 296-unit, Class A multifamily property that the partnership will own and operate while it develops The Residences, a 278-unit, Class A multifamily property on the additional parcel.
The Ascentris/Grubb partnership originated in December 2018 with the acquisition of 3700 Glenwood, a 112,000 square foot office building developed in 2007, and the development of 3800 Glenwood, a 114,000 square foot Class A office building scheduled to deliver nearly 50% pre-leased in early 2020. When combined and fully developed, the partnership will own 214,000 square feet of office, 574 multifamily units and 37,000 square feet of retail within Glenwood Place.
Grubb Ventures acquired the forty-acre Glenwood Place in 2003, which consisted of ten two-story office buildings, with a long-term vision to redevelop the park into a leading master planned mixed-use community. Redevelopment began in 2006 with the delivery of 3700 Glenwood in 2007, which was awarded “Development of the Year” by the Triangle Commercial Association of Realtors. Grubb completed Sojourn in 2018 and anticipates delivering 3800 Glenwood and The Residences in early 2020 and late 2021, respectively. Strategically located inside the I-440 beltline along Glenwood Avenue, Glenwood Place is adjacent to Raleigh’s most sought-after residential neighborhoods and provides convenient access to downtown Raleigh, the Raleigh-Durham International Airport, and Crabtree Valley Mall and North Hills, two of the premier shopping centers in Raleigh.
“We are thrilled to expand our partnership with Grubb Ventures. The early successes at 3700 and 3800 Glenwood Place and Sojourn speak to the demand for high-quality, well-located suburban real estate from office tenants and multifamily residents alike. We have been very impressed with Grubb’s long-term vision of creating one of the very best mixed-use communities throughout all of Raleigh and we look forward to participating in that vision going forward,” said Ascentris Managing Director and Partner Tricia Noble.
“We are so excited to be partnering with Ascentris again by adding luxury multifamily to our office and retail offerings at Glenwood Place. Our objective for Glenwood Place is for it to become the most sought after mixed-used community throughout the Triangle. With its high-quality walkable retail, dining and beverage options, boutique fitness, personal services, outstanding architecture, extensive landscaping and pervasive local art, Glenwood Place will distinguish itself as the very best community in the region,” remarked Grubb Ventures CEO, Gordon Grubb.
Sojourn features high-end unit interiors and appliances, an outdoor entertainment pavilion with a kitchen and fire pits, a private conference room, a 24-hour fitness center, electric car charging stations, a dog spa and park, a wine cellar, automated package lockers, a saltwater pool with private loungers and cabanas, and a covered parking deck. The property is also adjacent to the Raleigh Greenway System which has over 100 miles of trails.
Construction of The Residences is scheduled to begin in the first quarter of 2020 with first units anticipated to deliver in late 2021. The Residences will include luxury unit finishes, package rooms with cold storage, a pet park and spa, a two-level fitness center, a saltwater pool with sun shelf, a wine lounge, an art workshop, a 2,000 sf tenant lounge, conference rooms, and a fully covered secure garage parking. Combined, Sojourn and The Residences will include approximately 20,000 square feet of retail space and will target restaurant, boutique fitness, local market, and personal service uses.
Grubb will serve as the developer and property manager for all the properties within Glenwood Place. Cline Design Associates will provide architectural services and Harold K. Jordan and Co. will serve as the general contractor for the development of The Residences. PNC provided the construction financing for The Residences while MetLife provided acquisition financing for Sojourn. JLL brokered the sale of Sojourn and served as the mortgage broker for Sojourn and The Residences.
Ascentris is a real estate private equity firm based in Denver, Colorado. With over $1.6 billion in assets under management, Ascentris manages a series of fully discretionary institutional vehicles targeting both core and value-add investments across the major property types and geographic regions within the United States. Since 2003, Ascentris’ management team has relied on an investment philosophy and organizational structure that results in its investors getting to opportunities ahead of the market while receiving an unmatched level of service, transparency and accountability. Ascentris is a privately held and management-owned SEC registered investment adviser that maintains an unwavering commitment to put its investors’ needs first. Additional information is available at www.ascentris.com.
About Grubb Ventures
Grubb Ventures is a Raleigh-based owner, operator, and developer of real estate primarily within the Triangle region of North Carolina. Founded in 2002, the company has acquired and developed assets totaling over $500 million utilizing acute local knowledge and contacts within the community. The Grubb Ventures team has a proven track record as a best-in-class sponsor of award winning residential, commercial, and retail properties. Additional information can be found at www.grubbventures.com