Prudential Financial Inc. (PRU), the second-largest U.S. life insurer, joined a $54 million venture to build an office in Raleigh, North Carolina, as the company invests institutional funds to generate fee income.
Prudential Real Estate Investors will fund the 11-story property with Dominion Realty Partners, PREI said today in a statement. The 236,000-square-foot (21,900-square-meter) office, called Charter Square, will be in Raleigh’s business district.
“Raleigh has become one of the best cities to live, work and play, making it comparable to other tech hubs,” Soultana Reigle, managing director at Newark, New Jersey-based Prudential’s real estate unit, said in the release. “These facts and the strength of Dominion Realty Partners make Charter Square a compelling investment opportunity for our fund.”
Insurers including American International Group Inc., Guardian Life Insurance Co. of America and MetLife Inc. (MET) have been betting on commercial property as an alternative to bonds and a hedge against inflation. MetLife, the largest U.S. life insurer, said today that it bought Broadstone Laurel Highlands, a 300-unit, multifamily complex in Lorton, Virginia.
MetLife acquired the property from the Alliance Residential Fund I, the New York-based insurer said in a statement. Steve Taylor and Terence O’Connell of MetLife’s Washington office led the company’s efforts on the deal.
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