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501 Eastowne in Chapel Hill

Project        A two story multi-tenant office building totaling approximately 40,000 gross square feet.  The site planning is complete; the exterior planning is dependent on Town review as well as pricing of exterior materials.  The building will feature radius-curved corners of curtain wall glass fading into a glass and hard wall exterior.  The hard wall material will be either architectural pre-cast or brick depending on material costs and Town approvals.  The building is designed to look upscale and appeal to a wide ranger of users. Location The 3.7 acre tract is located at the corner of the Eastowne Drive and the new Sterling Ridge Drive.  The building has been assigned a street address of 501 Eastowne Drive.  The land is a sloped property that allows for use of the topography for parking underneath the building.  The first and second floors are above ground. The site has water and sewer service in the streets.  The site is zoned for office.  Our calculations, based on current FAR approvals in the Town, show a maximum potential building of 37,732 rentable square feet.  This is down from earlier estimates due to the more restrictive Town Council currently holding office.  Development   A building of comparable quality to the Franklin Park project would cost at or around $145 per  square foot or abut $5 million including all land and site costs.  This is expensive compared to Raleigh pricing, but consistent with Chapel Hill.  It is less expensive than the work underway in Meadowmont. Rents          At the above costs, rents would begin in the first year at a total cost of $21.50 per rentable square foot for a full service rate (breaks down into $5.50 for operating expenses and $16.00 Net³ rent per square foot).  This rent would be expected to escalate annually by at least $.50 per square foot.  Developer    The Lundy Group, Inc is the developer for the project working on behalf of the ownership entity to bring the project in on time and on schedule.  The Lundy Group, Inc. will also serve as the leasing or listing agent for the building.  Investment  We have not priced additional investment in the project from a third party investor.  However, we are establishing the ownership in an LLC that does allow for additional owners to buy stock.  We would need to explore this further if your client has additional interest. Architect Michael Hining & Associates has been the principal design architect with Barry Hill serving as the project architect. Contractor  Resolute Building Company under a modified design/build format.  We will hire the architect directly and the contractor directly, both reporting to us.  We will take an active role in selecting major subcontractors that are known and have proven performance.