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.
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.