Sale of the CVS Building is Official
A joint venture partnership between Durham real estate developer Todd Zapolski and Manhattan-based Atco Properties & Management has finalized the purchase of the CVS Plaza building in Chapel Hill and its nearby parking garage.
It is also the first-known major real estate deal in the region that was partially funded through crowdfunding.
The buyers paid $26.2 million for the property, according to county records, and about $750,000 of that money is coming from 20 accredited investors who contributed a minimum $5,000 through Fundrise LLC, a Washington, D.C., firm that specializes in crowdfunding for real estate.
Damon Hemmerdinger, co-president of Atco Properties, says each of their crowfunding investors will be treated no differently than any other limited partner contributing equity to the deal. “They will own their proportional share of the partnership and the benefits, accordingly,” he says.
For now, this crowdfunding investment model for real estate is open to accredited investors only, or those with at least $200,000 in income or assets in excess of $5 million. Hemmerdinger says Atco is using the model to find potential investors to which they may not have otherwise been introduced.
At the time of the sale, the 100,000-square-foot building at 137 East Franklin St. was 96 percent occupied. A CVS pharmacy store anchors the 17,000-square-foot ground floor and basement space, and about 65,000 square feet is occupied by administrative and research offices for UNC-Chapel Hill.