IBM sells part of its RTP campus to Fenton developer
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IBM's logo. Photo: David Paul Morris/Bloomberg via Getty Images
Hines, the Houston real estate company behind The Fenton development in Cary, is placing a big bet on Research Triangle Park.
Driving the news: Hines bought part of IBM's campus in Durham for $66 million this month, according to Durham County property records.
- The 146-acre property, technically just outside of Research Triangle Park's official boundaries, is located at 4205 South Miami Boulevard.
Why it matters: Hines has become one of the most active developers in the Triangle since entering the market a few years ago, and the purchase likely puts the IBM property on the path to a major redevelopment.
- In addition to the Fenton, Hines has plans to expand the American Tobacco Campus with Capitol Broadcasting in downtown Durham and add hundreds of apartments to Cary's Waverly Place shopping center.
The big picture: Hines' purchase is a sign of how much developer interest remains in the area — home to hundreds of businesses — despite increases in vacancy rates due to remote work trends.
- IBM will continue to lease the four buildings on the campus from Hines — even as it's put more of its office space in Durham up for sublease in recent years.
- The company said in a statement the sale would not impact its staffing levels in Durham.
What they're saying: "IBM will continue to occupy the campus for the near future," Paul Zarian, Hines' managing director for its Raleigh office, said in an email.
- "Long term, a number of options for redevelopment are on the table," he added. "Some uses, like residential, would require rezoning, while others, like life science and industrial, would not. The future of the property will depend on the market at the time."
Between the lines: The Research Triangle Foundation, which manages RTP, is preparing to ask Durham and Wake counties for a new zoning overlay that would allow landowners to build more housing types and commercial retail inside of the park.
- The effort, which is being billed as RTP 3.0, is an effort to keep the park attractive to companies and talent as well as solve future housing and transportation challenges.
- Zarian said Hines was in favor of the foundation's plan and believes it would benefit the IBM property and the region as a whole.
Keep reading: RTP's next transformation