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Atlanta & Southeast  + Carolinas  + Distressed Assets  | 
RDU Center III investors default on loan, lose property to auction

Raleigh-Area Office Sells at Auction

Sometimes, good intentions are not enough in this challenging lending environment. Despite transforming a building into a Class A office space and leasing out over 92% of the space, The Dilweg Companies of Durham defaulted on loan payments on the Raleigh/Durham office building. They had to return it to the lender. Dilweg acquired the building for $23.25 million in 2014 as part of a portfolio deal. The building was recently bought at auction by O’Brien-Staley Partners for $12.5 million.

RDU Center III, built in 2009, is a 4-story building with 114,518 square feet of space. Tenants include K4 Connect and iContact, both software companies, and Extreme Networks Inc., a networking company.

The Triad Business Journal reports Dilweg has returned at least two other buildings to lenders this year, one in Cary and another in Charlotte.


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About Mike Boyd

Mike covers our Texas and Phoenix/Southwest regions. He is a veteran news reporter who spent 10 years in radio and television news, mostly in Tucson, Arizona. Following his career in the media, he spent ten years as a communications executive for a publicly traded development company. Mike is married with three boys and three Huskies.

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