Business

Capitol Broadcasting to add new office building in Durham

Posted January 26, 2012 5:40 a.m. EST
Updated January 26, 2012 9:22 a.m. EST

— Capitol Broadcasting plans to build a new, 130,000-square-foot office building that will overlook left field at the Durham Bulls Athletic Park.

The company, which is the parent of WRAL-TV and WRAL.com, could begin construction of what will be called Diamond View III as early as April 1 with completion expected next year.

No tenants have been signed for the space, but Michael Goodmon, vice president of real estate for Capitol, said “we are in some conversations” with prospective clients.

Beyond the addition of more space, Goodmon said he and the company are excited about what Diamond View III also means to the entire Durham complex that Capitol operates.

“It’s the last piece to complete the ballpark,” Goodmon said. “This is a big piece for us.”

He said no commitments were needed before construction could start.

The new structure will include retail business and restaurant space on the first floor and will offer a much lower level view of the stadium than the adjacent structures.

It also will sit adjacent to the Durham Performing Arts Center and will be “at the very heart,” as Goodmon described it, of the American Tobacco Historic District, which is owned by Capitol.

Goodmon is optimistic Capitol will be able to lease the space, noting that “American Tobacco is between 98 and 99 percent full.” The massive complex built around a former tobacco factory covers 1 million square feet.

“We feel good about where the economic situation is headed in general,” Goodmon said. He noted that the “Class A” type of office space that the new building will include is “in very short supply” in this market.

Capitol did encounter a “hiccup” last year when GlaxoSmithKline pulled out of lease space in the complex, but Goodmon noted that Capitol soon found new tenants.

Goodmon would not talk about the cost of the building.

Diamond View III will complement Diamond View I, which was completed in 1998, and Diamond View II, which was finished in 2008. They also overlook the ballpark.

The structure is designed to fit in with the American Tobacco architectural design featuring plenty of bricks and open spaces.