400 Hillsborough Tower

New Construction
81

I talked to Gregg (the developer) today. When I last talked to him in March, he had financing dependent on getting an anchor tenant and he thought he was very close to having the tenant. I found out today that tenant ended up going to One Glenwood. He now says he is close to finalizing a speculative financing deal (financing without a tenant) and is pretty confident the project will get moving in Q1.

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82

Thank goodness! That’s good news!

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83

We have a new insider on the forum! Thanks for the info

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84

Wow I really hope this happens!

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85

I will be withholding judgment until after rhe first qtr only vecause of his past projects track record.

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86

That’s what he gets for trying to acquire an anchor tenant before building, when there’s already about 4-5 other developments getting ready to open still with plenty of room for new businesses. Fortune favors the bold!

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87

The reality of the situation is that it is really difficult (and to some… impossible) to get the necessary financing for a project of any real size without acquiring an anchor tenant first.

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88

True, but if you’re a big business looking to move to Raleigh in the near future, and you’ve got 4-5 options of developments that are currently in process of construction, some almost finished, all with open space ready for you to sign a contract for- or 1 development that hasn’t even started demo, waiting for enough pre-leases to even begin - which would you go with?

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89

Nobody would be able to make a decision solely on that one thing alone. Some companies may want to be in on the design of the building. Most companies don’t mind waiting 2 or 3 years to move into a new building as planning and whatnot does take time. You are assuming that all companies want to move in immediately and that is not an assumption that I would make.

90

Oh of course! But my point is that there are a lot of big companies wanting to move to Raleigh ASAP, and so the developers who take the risk and build on spec are going to be the ones to reap the quick rewards in the current climate.

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91

The potential to reap quick rewards yes… but also an increased potential to reap a disastrous loss too.

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92

All very true. I guess what I’m getting at is that, had they started 400H soon after it was announced, they probably would’ve been mostly leased by now. Instead, they’re losing potential tenants to One Glenwood because it’s already finished and ready for business. In this instance, I think they’ve already reaped a loss. So I’m glad to see they’re considering just getting the ball rolling before all these other new projects sneak up and continue to take potential leases away from them.

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93

Speaking of “all these other new projects” seems there is going to be a flood of new space coming online by early 2022 Just hope lot of it can be per-leased before buildings are finished or will see new build market come to end for years.

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94

IF everything keeps going the way it is currently, it seems likely these new projects will continue to fill up. At least I hope so, too.

95

I think the upcoming availabilty breaks down to:
1 : Smoky Hollow
2 : Two Glenwood
3. Raleigh Crossing (301 Hillsborough)
4. Nexus (N&O)

After that everything else seems like speculation until actual plans are drawn

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96

And 301H already has Pendo signed up, so their open space is limited from the get-go!

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97

Maybe this project can benefit from a lifting of height restrictions to DX20? I’d love to see them add another 50 feet or more. Maybe they can add more commercial levels to the project if that happens?
On a separate note, where’s the parking supposed to be for 400H? Is it below grade?

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98

I believe it will be a parking pedestal like the 301.
https://screenshots.firefox.com/1P0bawtzuD6fqHZ9/www.gensler.com

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99

Parking on levels 2 and 3. Office on 4-8. Level 9: half residential/half amenities, 11 floors residential. Concrete frame building.

  • Office floors 4-7: 14’ floor to floor heights

  • 20’ floor to floor height on 8th level; Mezzanine possibilities

  • ~17,000 sf ground floor retail

  • Typical office floor plate ~29,000 sf

  • Marketing brochure says 15,000 sf pre-leased. Wasn’t this the general contractor or architect or developer or someone involved with the project?

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100

The parking in the building is likely for residents. They are adding floors to the Powerhouse parking deck for the office parking. Not sure how many levels.

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