Thanks! I only read the N&O article. 100K isn’t small potatoes. I think 400H is supposed to have like 140k of office? Seems like enough to anchor any of the buildings we’ve seen proposed.
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It’s interesting that 301 Hillsborough released new rendering just last week with this new coming so close behind.
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Several other interesting quotes from the article:
With the incentives in hand, Pendo’s leadership is now focused on finalizing a deal to buy land and build new office space that will serve as the company’s primary engineering hub.
“It will be in downtown Raleigh,” Pendo CEO Todd Olson says. “We’re talking with a number of developers now.”
Pendo currently operates out of space at the Wells Fargo Capital Center on Fayetteville St., where it signed a new lease earlier this year. But those offices can only accommodate 400 total employees. Pendo currently employs 238 companywide, including 171 in Raleigh - where it plans to add 590 more. And Olson said the company is quickly running out of desks.
“We just can’t fit,” he says. “We’ll outgrow this space in one-and-a-half, maybe two years.” The company plans to make a final decision on the location and developer of the new headquarters early next year.
The state incentive package comes with the stipulation that Pendo make a capital investment of $34.56 million for the project by the end of 2021. Of that amount, $12 million will likely go toward property acquisition, while another $21 million would be put toward construction. Olson says the company will need “in the 100,000-square-foot range or more.”
Exciting stuff!
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Deutsche Bank ‘on track’ for full-year profit; hiring continues in Cary. Oct 10 2018
Credit Suisse in the midst of a 1,200-job expansion in RTP May 5 2018
Amazon in Garner 1000+ jobs. Aug 10 2018
Apple’s possible as much as 5 billion dollar investments in Catawba co and surrounding areas. Nov 12 2017
Not to mention, knock on wood, something extraordinary in Raleigh or RTP yet to be announced
ACC tourney till 2021 in NC then visit other important ACC markets building strong relationships with new/newer ACC communities Sept 6 2018
Advance Auto Parts HQ. Raleigh
Pendo HQ’s. Raleigh
Deserve mention and kudos
Just a few articles I’ve read recently implying NC is on right track. And very much WINS for North Carolina and our surrounding community. There is a lot of positive energy in our area right now, such exciting times!!!
StevenL
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From an old TBJ article Sandreuter estimated he would need only about 40,000 square feet of office space preleased to make the building happen. I hope some company (Pendo, perhaps?) will decide to lease space there.
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I honestly get the feeling they will anchor 400H. It’s been rumored (maybe by our trusty insider Dwight Nipper? Can’t remember) that 400H would start in early 2019. The timing adds up. Pendo says they are talking to developers and plan to announce something early 2019. Plus they expect to out grow their current lease in Wells Fargo in a year and a half or two. So I expect whatever they decide needs to be something with plans that have already been in the works so that it can start soon and be completed by the time they are ready to move out by late 2020 or 2021.
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My only concern here is that the square footage of office space here may not be enough? Sounds like they need 100,000 sf? That doesn’t leave much as a fall back for the developer? Also, I would love to see them add height to this building…
100,000 ft2 does not a full office tower make.
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lol, that’s true, but it does fill up the office third of an apartment/retail/parking deck/office building with a nice big, fat, pink PENDO sign on it.
Yeah, it’s going to have to anchor a mixed use tower. It would be great to combine it with first floor retail and a luxury hotel.
I’m not so good at humor. I was joking because I was trying to describe almost every high rise being proposed or recently built in DTR.
Either way I definitely feel like it will be one of these projects that have been looming in development limbo. Something that has set plans and just needs the pre leasing agreement. Whether that’s 400H or possibly 301H. I think 301 has 300,000sqft available right? So maybe they take a chunk of that. Dwight did say that’s supposed to start early 2019 too.
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Nice pic. Does that building have parking in it? I’m sure they’ll want a parking deck in the building. Approximately 700 spaces reserved?
There isn’t any parking as part of the structure for 227 Fayetteville.
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@dtraleigh
Hi Leo, should this Pendo discussion be moved to it’s own thread/line? We might get mixed comments with regards to Apple? just a thought…
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Thanks for the suggestion. We’ll keep on Apple in that thread and we can discuss Pendo here.
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Does the $12 million land price give us any clues to which site this might go at? The total 301 Hillsborough site was sold for $17 million in April, would the developer sell the office land separate from the rest?
Or…
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301 Hillsborough… $17 million… for 1.84 acre = $9.24 million per acre so maybe they are looking at sites roughly 1.3 acre size ($12M/$9.24M)
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400H is 1 acre land, so probably valued less than $12M. But not sure how that works with mixed use development. The office tenant wouldn’t buy/ own the land would they?
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Maybe they buy a portion of the N&O site?
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My question is… how many companies actually OWN the land and buildings in DTR? I got the impression that most of the buildings were owned and maintained by real estate companies and developers, and all the banks, companies, etc just leased space. I believe the one exception that comes to mind may be CP&L/Progress/Duke (whoever they are this week). Maybe y’all can enlighten me.
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I don’t have any knowledge of where they might build, but the numbers don’t seem to add up to me. First, it does seem rare for a company to build and occupy their own building these days. $12 million could probably buy a decent site, but for the amount of space that Pendo is seeking, and the cost of building in Downtown, $21 million seems far less than would be required. Unless that’s only a portion of their planned expenditures, I doubt they’ll be building a new tower for only that much. 400H is projected to cost well over $100 million, as did the Dillon.