The Class A office buildings at 370 and 380 Knollwood St. in Winston-Salem have been sold for $40.75 million to two local commercial real-estate groups.
JDL Castle Corp. and Magnolia Partners closed on a deal Wednesday that consists of a combined 1.69 acres and about 250,000 square feet of office space.
It is among the largest commercial real-estate deals in Forsyth County in recent years.
The seller was Highwoods Realty Ltd. Partnership of Raleigh.
The buildings near Salem Parkway and Thruway Shopping Center were the final local properties Highwoods owned after selling 2.8 million square feet of office space between 2007 and 2011 after determining Winston-Salem was a non-core market.
Among the Knollwood buildings’ tenants are Krispy Kreme Doughnuts Inc., Bank of America Corp., Wells Fargo Advisors, Merrill Lynch, and Rooster’s — A Noble Grille.
“We do not anticipate any tenant departures, including Krispy Kreme,” said Charles Wilson, a partner with Magnolia.
Although Krispy Kreme has kept some corporate operations in Winston-Salem, its management team moved in 2018 to Charlotte.
“These Class A offices have attracted and retained some of the best tenants in the market,” Wilson said. “Given their location and quality, we believe that they will continue to do so.”
The Krispy Kreme space underwent a $1.2 million makeover in 2012.
JDL Castle is a real-estate development company. The majority of the company’s work has been commercial projects, but it also has done residential work.
The companies’ portfolio includes a number of projects in Winston-Salem, including Century Plaza, Stratford Oaks and Winston Tower.
JDL Castle also built JDL Fast Track, a nationally renowned indoor track-and-field facility in Winston-Salem.
Highwoods Properties Inc. currently is selling off its remaining industrial and single-story flex portfolio in Greensboro. It announced plans Aug. 22 that it would end its Greensboro presence by mid-2020, along with the Memphis, Tenn., market.
Ted Klinck, Highwoods’ president and chief executive, said in a statement that it is reinvesting the sales proceeds into “high-growth markets, such as Charlotte.”
Highwoods’ expectation is that the Greensboro and Memphis property sales would approximate the company’s $436 million total investment for the Bank of America Tower at Legacy Union in Charlotte, which closed in November.
On Feb. 4, affiliates of Link Industrial Properties LLC bought two portfolio pieces from Highwoods for a combined $233.4 million.
The Link Industrial deal is for the portfolio piece that features a combined 2.8 million square feet, for $193.4 million. Highwoods said the properties are 93.8% occupied and are projected to generate a cash flow of $14.3 million in 2020.
The largest of the seven transactions involved the sale of 651, 653, 655, 657, 661, 663, 665 Brigham Road; 7940 Eric Road; and 7940 Near Eric Road for a combined $67.35 million.
Other transactions involved properties on Albert Pick, Burgess, Burnt Poplar and Gallimore Dairy roads, and Tudor Lane.
As for the second portfolio piece, Highwoods projects closing the sale of The Knollwood, a two-building office complex with 250,000 square feet, for $40 million by Saturday.
Altogether, those properties represent about 75% of Highwoods’ remaining Triad portfolio.