MORRISVILLE – A Connecticut-based lender, Knighthead Funding, is providing a $34 million loan for the conversion of the former Morrisville Outlet Mall into what it calls a “creative office campus.”
Construction is expected to begin immediately with completion expected by next spring, the lender said in an announcement made Tuesday.
Equator Capital Management and OCS Capital announced it had purchased the mall, which dates to 1981, earlier this year.
Plans call for the conversion of the mall into 245,000 square feet of Class A commercial office space.
The campus “will be characterized by the extensive use of glass walls, some as high as 30 feet to create interior spaces filled with natural light,” Knighthead added.
Features will include a turf yoga lawn and bocce court.. Construction will begin immediately and is expected to be completed in the Spring 2020.
“We were impressed with the Sponsor’s vision and business plan to acquire an obsolete, yet strategically located retail mall and convert it to a higher and better use,” said Knighthead Funding Principal Jonathan Daniel in a statement. “Our capital will help the Sponsor reposition this asset to a state-of-the-art Class A Creative Office complex with large contiguous blocks of space that meets the growing demand from major companies wishing to relocate to the Research Triangle or expand their operations there.”
The development covers 25 acres at the intersection of Airport Boulevard and I-40 near Raleigh-Durham International Airport.
The 25-acre redevelopment project is located at 1001 Airport Boulevard, near the I40/I540 interchange offering convenient access to Raleigh and Durham, as well as other major regional employment centers. The property is also served by the Raleigh-Durham International Airport, less than two miles away.
“Having successfully worked with Equator Capital on two prior New York developments, when they approached us for financing on this project, we were confident in their ability to execute on the business plan,” said Knighthead Funding Vice President, Brian J. Sullivan. “We value the relationships we have with our borrowers and take great pride in knowing they view us, not just as a lender but as a partner.”