A little more than half an acre in a hot part of downtown Raleigh just went up for sale.
The Diocese of North Carolina is selling its downtown Raleigh property at 200 W. Morgan St. after using it for their offices since 2005. There is no list price for the property as JLL (NYSE: JLL), who is overseeing the sale, is open to fielding offers, according to Bishop Sam Rodman.
The assessed value of the property and building is $5.9 million. The Diocese purchased the property for $2.75 million in 2007.
Downtown properties have been landing big price tags in recent years. The circular Holiday Inn building at 320 Hillsborough St. sold to a New York developer for $19.8 million in late 2021. A block south of the Diocese, Greg Hatem, founder and managing partner of Empire Properties, acquired the Professional Building at the corner of West Hargett and South McDowell streets in an $11 million deal earlier this year.
The 0.66-acre site at 200 W. Morgan St. is zoned for up to 20 stories and has no parking minimums. The 3-story, 20,600-square-foot building, located next to Campbell University Law School, is in the Capital district and a block away from the North Carolina State Capitol and within walking distance to parks, entertainment, restaurants and shopping.
The property is in a development hotspot. The new 301 Hillsborough tower is on an adjacent block, and plans call for the nearby Holiday Inn property to be transformed into a 20-story development with high-end residences, a luxury hotel and restaurant and retail space. To the south, a potential 40-story project, called the Nexus, has been proposed across from Nash Square.
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The Diocese decided to sell the property after transitioning to remote work and seeing that development opportunities downtown have created a hot real estate market.
“What we discovered during the pandemic is that despite not being in our usual offices, our productivity not only held to its usual levels but increased,” Rodman said. “For two years, we have demonstrated we could continue to serve our churches in every way without a central office.”
The property was officially listed for sale on Sept. 8, and the Diocese plans on being involved in the offer process.
“Our hope is to continue to be good neighbors to the people downtown. … We are in contact with them as we go about this process and want to keep them informed and do everything we can to make sure they’re comfortable with how this is in the end,” Rodman said.
The estimated timeline is to have the building sold by early 2023.
The Diocese plans to remain in Raleigh and will work out of temporary offices until a new, smaller location is found. Prior to its downtown office, the Diocese had offices in North Hills.