CONTENTS
2 EXECUTIVE SUMMARY
3 PROPERTY INFORMATION
8 LOCATION OVERVIEW
14 MARKET SNAPSHOT
17 DURHAM AREA HIGHLIGHTS
Disclaimer: All information provided herein is from sources deemed reliable. No warranty or representation is made as to the accuracy thereof and is subject to errors, omissions, change of price, rental or other conditions.
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Foundry Commercial is pleased to offer a highly desirable development tract for sale located along NC Highway 147 in Downtown Durham. This 9.58 acre property includes the 60,788 square foot Heritage Square retail center. This offering represents one of the largest tracts of undeveloped land in Downtown Durham in one of the most dynamic areas in the Triangle.
• Unbeatable local and regional transportation connectivity• Located in one of the fastest growing submarkets in the Triangle
which allows a developer to take advantage of increased infrastructure, population growth and rising incomes
• The highly recognizable Fayetteville Road and NC Highway 147 location has convenient access to Interstate 40, Interstate 85, as well as the Research Triangle Park
• Flexible zoning allows retail, multifamily, office and mixed-use development up to 150 feet high
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EXECUT IVE S U M M A RY
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ADDRESS 606 Fayetteville Road401 East Lakewood Avenue
PARCEL IDS 119327 and 119326
MUNICIPALITY City of Durham
BUILDING SIZE 60,788 square feet
BUILDING AGE 1985
TOTAL ACREAGE 9.58 acres
CURRENT ZONING DD-S1 & DD-S2 (small portion of site)
CURRENT USAGE Retail Shopping Center
SEWER & UTILITIES Municipal water and sewer
OCCUPANCY 100%
EST. NOI (2016) $280,630
LIST PRICE Call for details
PROPERTY INFORMATION
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HERITAGE SQUARE
FOUNDRY COMMERCIAL 6
Sources: Esri, HERE, DeLorme, USGS, Intermap, INCREMENT P, NRCan, EsriJapan, METI, Esri China (Hong Kong), Esri Korea, Esri (Thailand), MapmyIndia,NGCC, © OpenStreetMap contributors, and the GIS User Community
May 5, 2017
Information depicted hereon is for reference purposes only and is compiled from the best available sources. The City of Durham/Durham County assumes no responsibility for errors arising from use or misuse of this map.
0 0.15 0.30.075 mi
0 0.2 0.40.1 km
1:9,028
:
ZONING
The majority of the site is zoned DD-S1 within the City of Durham, the property is located within the Downtown Design - Support 1 zoning district which allows for a broad range of commercial, residential and mixed-use development with a maximum building height up to 100 feet without provisions and 150 feet with provisions in place. A small portion of land along East Lakewood Avenue is zoned Downtown Design - Support 2 or DD-S2 which will allow for development up to 50 feet. For more information on the existing zoning designations please refer to Durham's Unified Development Ordinance (http://durhamnc.gov/414/Unified-Development-Ordinance-UDO).
ZON
ING
DD
-S1 ^
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TENANT SUITE SF
Super Swirl d/b/a Pelican's Snoballs 606 800
Food World A 30,625
Family Dollar - Store # 772 B 8,510
Heritage Square Complex C 6,000
Cephus Williams D 3,200
Recovery Innovations E1A 4,469
Visions Counseling Studio E1B 5,975
JC Express Auto Service E2 2,400
Rajohn Dock F 2,400
Ebony Beauty Supply G 3,600
Elahi d/b/a Subway #1948 H 2,000
TENANT INFORMATION
1
23
4
5
6
7
8
9
1110
EAST LA
KEWO
OD AVEN
UE
1
2
3
4
5
6
7
8
9
11
10
147
EXISTING CASH FLOW
The existing Heritage Square retail center provides over $580,000 of gross incomes and $280,000 of net income which will assist in the offsetting of carrying costs while a buyer completes planning and approvals for its proposed redevelopment.
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FOUNDRY COMMERCIAL 9
WEST MAIN STREET
DURHAM FREEWAY
SOU
TH D
UKE
STR
EET FAYETTEVILLE ROAD
147
147
98
78,000 VPD
15,0
00 V
PD
SOUT
H RO
XBO
RO S
TREE
T
DURHAM BULLS BASEBALL STADIUM
AMERICAN TOBACCO CAMPUS (ATC)
FUTURE DURHAM POLICE DEPARTMENT
LOFTS AT SOUTHSIDE
VAN ALEN
21C MUSEUM HOTEL
BRIGHTLEAF SQUARE
WEST VILLAGE
DURHAM PERFORMING ARTS CENTER
DURHAM CONVENTION CENTER THE DURHAM HOTEL
7
7
4
4
6
6
3
3
1
1
5
5
2
2
8
8
UNDER CONTRACT
3.72 600 WILLARD ST
UNDER CONTRACT
2.47 606 JACKSON ST
10/7/2016 11.18 601 WILLARD ST
7/2/2015 3.96 504 E PETTIGREW ST
5/16/2015 3.72 600 WILLARD ST
5/15/2015 6.06 VAN ALEN
3/23/2015 4.82 600 E MAIN ST
4/11/2014 2.62 LIBERTY WAREHOUSE
EXPONENTIAL GROWTH
Heritage Square is uniquely located in Downtown Durham which has experienced a surge in new residential, office and retail projects totaling over $1.3 billion in investment since 2000. Since 2010, 50 new retail shops, 31 new goods and services businesses and 62 new restaurants have opened to support the growth of office and residential projects in the area. Currently there are over 2,500 residents, 1,700 residential units, 16,500 employees, 90 restaurants and bars, 55 retail stores, and 150 startups thriving in downtown Durham. http://downtowndurham.com
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DURHAM BULLS BASEBALL STADIUM
WEST VILLAGE21C MUSEUMHOTEL
AMERICAN TOBACCOCAMPUS (ATC)
THE LOFTS AT SOUTHSIDE
DURHAM PERFORMING ARTS CENTER DURHAM
COURTHOUSE
AUSTIN LAWRENCE 23-STORY APARTMENTS + OFFICES
DURHAM COUNTY DEPARTMENT OF PUBLIC HEALTH
VENABLE
VAN ALEN
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GATEWAY
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PATH OF GROWTH
Heritage Square is positioned in Downtown Durham and less than one mile north of North Carolina Central University. The area between NCCU and Downtown Durham is experiencing a redevelopment renaissance from which Heritage Square will benefit.
NCCU is part of the University of North Carolina system has a current enrollment of approximately 8,500 students which is an approximately 30% increase in enrollment in the past 15 years. In addition to offering innovative programs in visual and performing arts, science and business, NCCU has a nationally recognized law school and up-and-coming biotechnological and biomedical programs helping to fuel its growth.
SPAULDING ELEMENTARY WHITTED SENIOR
HOUSING
SOUTHSIDE/ ROLLING HILLS
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DOWNTOWN DURHAM
DUKE UNIVERSITY
FOREST HILLS
NORTH CAROLINA CENTRAL UNIVERSITY
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Rolling hills/southside rEVITALIZATIONHousing Authority of the City of durham McCormack baron salazar
©2009 Torti Gallas and Partners, Inc. | 1300 Spring Street, 4th �oor, Silver Spring, Maryland 20910 301.588.4800
21
MA
STER
PLA
N V
ISIO
N
-
-
Lakewood Ave
Enlarged Rolling Hills / Southside Revitalization Plan
Chestnut St.
Hillside Ave.
Piedmont Ave.
S. R
oxbo
ro S
t.
Sout
h St
.
.rD tuocS
W.Enterprise St.
0
50 100
200 FeetN
AREA DEVELOPMENT
Directly south and west of Heritage is the 125 acre Southside redevelopment project. This $48 million project includes new for sale and for rent residential properties in close proximity to downtown and provides a link to well-established Forest Hills and other neighborhoods to the west.
SOUTHSIDE/ ROLLING HILLS
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DEMOGRAPHICS 3 MINUTES 5 MINUTES 7 MINUTES
2017 ESTIMATED POPULATION 47,054 101,258 156,789
2022 PROJECTED POPULATION 52,287 111,028 171,392
2017 ESTIMATED HOUSEHOLD INCOME $53,269 $54,689 $58,862
2017 ESTIMATED HOUSEHOLDS 17,489 38,523 62,750
2022 PROJECTED HOUSEHOLDS 19,882 43,072 69,578
TRAFFIC COUNTS
DURHAM FREEWAY 78,000 VPD
FAYETTEVILLE STREET 16,000 VPD
E LAKEWOOD AVENUE 7,000 VPD
S ROXBORO AVENUE 7,000 VPD
DEMOGRAPHICS 1 MILES 3 MILES 5 MILES 7 MILES
2017 ESTIMATED POPULATION 15,470 95,606 194,939 268,762
2022 PROJECTED POPULATION 17,406 104,897 212,679 292,083
2017 ESTIMATED HOUSEHOLD INCOME $53,504 $55,110 $66,522 $72,391
2017 ESTIMATED HOUSEHOLDS 5,737 36,107 78,907 111,189
2022 PROJECTED HOUSEHOLDS 6,634 40,419 87,234 122,381
1 MILE 3 MILE 5 MILE 7 MILE
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RETAIL
The property offers a tremendous opportunity for retailers, restaurants, entertainment, hospitality, lodging and other users to capitalize on the surge of residential growth as well as road infrastructure of NC 147 in one of the most sought after submarkets in the Triangle.
With over 3.25 million SF of retail space in downtown Durham, the submarket has a vacancy rate of nearly 2.6% according to real estate database CoStar.
Numerous anchor and junior anchor retailers are currently seeking locations in proximity to downtown Durham, which shows a meaningful demand for space and locations that meet their requirements with limited supply. The 9.58 acres available at Heritage Square are well positioned to accommodate this demand.
0
1,000,000
2,000,000
3,000,000
4,000,000
5,000,000
6,000,000
7,000,000
8,000,000
West Raleigh US70/Glenwood
Six Forks Falls of Neuse US 1/CapitalBoulevard
DowntownRaleigh
Cameron Village Eastern WakeCounty
Southern WakeCounty
Cary RTP/I-40Corridor
Central Durham North Durham South Durham
(SF)
Submarkets
Orange County/Chapel
Hill
RALEIGH-DURHAM RETAIL LEASABLE SQUARE FOOTAGE
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MULTIFAMILY
The Raleigh-Durham metro area continues to be one of the hottest multifamily development markets in the country due to a red-hot economic recovery with nearly 50,000 jobs created in the past two years and the #1 Fastest Growing Metro from 2000-2013 according to CityLab (April 2015). Accordingly, over 80 people move to the area a day due to job growth and its high quality of life. Construction starts have exploded over the last two years and there are now 8,835 units under construction throughout the Triangle, with an additional 4,919 units proposed to be built.
Drilling down to the downtown Durham submarket where the subject property is located, there are 4,710 total units which constitute approximately 5.3% of the total Triangle market. Located in a substantial path of growth due to the fast-growing downtown Durham area, the submarket vacancy is a healthy 14.4%. The average square footage in this submarket is 875 square feet and units average monthly rents of $1,322 ($1.51 per square foot). There are currently approximately 863 units under construction and 450 units proposed, though the local pace of growth indicates that the area can support additional apartment development.
PLACES TO LIVE 2016
U.S. News & World Report
TOP 5
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STELLAR NATION-LEADING POPULATION GROWTHHome to more than 2.0 million residents, the Raleigh-Durham CMSA is continually ranked as one of the fastest growing metros in the U.S., welcoming more than 720,000 newcomers between 2000 and 2014 for a 55% cumulative uptick in population.
DIVERSIFIED, INNOVATION-BASED ECONOMYThe Triangle is anchored by world-class universities, well-managed state and local governments, and operations of many of the nation’s leading technology, biotechnology, pharmaceutical, and health care firms.
HIGHLY-RANKED JOB CREATION, QUALITY OF LIFEDue to its robust economy, inviting business climate, highly-educated workforce, established infrastructure, and outstanding quality of life, the Triangle consistently garners accolades touting its appeal to businesses and residents alike.
EXCEPTIONAL EDUCATIONAL CACHET
The Triangle region is home to nationally esteemed universities: Duke University and North Carolina Central University in Durham, North Carolina State University in Raleigh, and the University of North Carolina in Chapel Hill.
OUTSTANDING LONG-TERM PROSPECTS
With the right pieces in place for a thriving economy and a rising quality of life, population and economic growth are fully expected to continue to rank highly amongst other U.S. cities for the long-term.
RALEIGH-DURHAM HAS HISTORICALLY POSTED STRONG JOB GROWTHwith a healthy current unemployment rate of 4.2%. The region has added nearly 30,000 net new jobs in the past twelve months.
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ECONOMIC VIBRANCY
RALEIGH-DURHAM ANNUAL JOB GROWTH
ANNUAL JOB GROWTH
HFF PROJECTION
2004 20062005 2007 2008 2010 2012 20142009 2011 2013 2015 2016 PROJECTED
Y E A R U N I T ED S TAT E S % ∆ N O R T H C A R O L IN A
% ∆ R A L E I G H -D U R H A M -
C A RY C S A1
% ∆
2015 Estimate 318,857,100 3% 9,993,105 5% 2,036,374 9%
2010 Census 308,745,538 10% 9,535,483 18% 1,867,307 34%
2000 Census 281,421,906 13% 8,049,313 21% 1,412,128 14%
1990 Census 248,709,873 10% 6,628,637 13% 1,072,158 24%
1980 Census 226,545,805 11% 5,874,000 16% 861,479 22%
1970 Census 203,392,031 5,082,059 708,453
Growth 1970-2015 57% 97% 187%
CAGR 1970-2015 1.0% 1.5% 2.4%
CAGR 2000-2015 0.8% 1.5% 2.5%
TRIANGLE REGION HISTORICAL POPULATION TRENDS
Source: Census.gov, American FactFinder
1- CSA includes 11 counties – Harnett, Chatham, Durham, Orange, Person, Vance, Granville, Wake, Johnston, Franklin, and Lee
TOP 10 CIT IES FOR CREATIVES
SMART ASSETS
No. 2 AMERICA'S 20 FASTEST GROWING METRO AREAS
FORBES.COM
TOP 10 TECH TOWNS
WIRED MAGAZINE
TOP 10 AMERICAN CIT IES FOR WORKING MOMS
CITI
No. 6 AMERICA'S TOP 10 CIT IES FOR SMALL BUSINESS
WASHINGTON POST
No. 2 TOP 10 SMALL AMERICAN CIT IES OF THE FUTURE
FDI, A DIVISION OF FINANCIAL TIMES
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AN ENVIABLE QUALITY OF LIFE
The Triangle region has added an average of 80 new residents per day between 2010 and 2014.
The region continues to attract a steady stream of new residents from all over the world. With the right pieces in place for a thriving economy and a rising quality of life, population and economic growth are fully expected to continue to rank highly amongst other U.S. cities for the long-term.
Established, high-amenity crossroads located at the center of one of the nation’s most high-growth metros with an enviable quality of life. No. 7
U.S. WORLD & NEWS REPORT
No. 1
BON APPETITE
ACCOLADES
TOP 5
TODAY
No. 5
U.S. WORLD & NEWS REPORT
FOODIEST SMALL TOWN
DESTINATIONS TO RETIRE IN THE U.S.
BEST PLACES TO L IVE
BEST PLACE FOR STEM GRADUATES(SC I ENCE , T ECHNOLOGY, ENG INEER ING AND MATH)
foundrycommercial.com
Although the information contained herein was provided by sources believed to be reliable, Foundry Commercial makes no representation, expressed or implied, as to its accuracy and said information is subject to errors, omissions or changes.
JIM ALLAIRE, SIORManaging Director(919) 576 [email protected]
KARL HUDSON IV, CCIMSenior Vice President(919) 987 [email protected]
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