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RALNATIVE

Next Bank Tower Downtown

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We started this discussion in another thread, but I thought it a good idea to create a thread for this topic. It's an interesting subject.

With Raleigh banks poised for significant growth over the next couple of decades, which capital city bank do you think will be the next to build a tower downtown...First Citizens, Capital Bank, or North State Bank?

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I believe that First Citizens will be the first to built a large tower. The other two have been expanding some, but at this point in time, they are both still VERY small in terms of branches and capital. Neither one of them have any reach outside of NC, or even in Charlotte at this time. First Citizens, on the other hand, just expanded its presence in CA with the purchase of a 12 branch bank that failed and most recently purchased an 18 branch bank in WA state that failed as well. Business Analysts at UNC believe that this is likely only the start for the bank in failed bank shopping. Maybe First Citizens will become the next BB&T :shades: .

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I'm going to go with First Citizens as well. They are growing the most out of any other local bank here I feel and have been around for a long time (1898). Just quickly eyeing their latest financial report, they have about $17 billion in assets and average about $1 billion in growth per year. That's pretty decent.

http://www.ffiec.gov/nicpubweb/nicweb/Inst...DT_END=99991231

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First Citizens just renovated their downtown branch and have fairly well anointed the North Hills campus as their head quarters. While I agree their capital situation and growth strategy screams leader in this discussion, I think Capital Banks posture towards downtown gives them the lead in my book, although the horizon for a tower downtown is much further for them. Purchase of 333 Corporate Plaza was just a few years ago, but I could see them going taller at a spot such as on Salisbury Street behind the Sheraton in 15-20 years.

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I think it may be a while for a bank tower downtown, or any tower for that matter. Don't forget that Charter and Edison are already approved and total something like 800k sf of office space. Throw in the approved L-Bldg, and you have about 900k sf in the pipeline, but not built. A total guess, but that might take 6 years to absorb that space, assuming a return to positive economic growth immediately.

If one were built, I'd suggest either the site north of the Convention Center (Enterprise) or the First Citizens site on Fayetteville St. I suspect sites 2 & 3 will not be high rise and site 4 may be a hotel, but I doubt the market is going to demand a high rise there either.

But you know what, we don't need high rises to have a great downtown anyway. We need more districts like Hatem's Corner, and less like the sterile South End.

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State Employees Credit Union has announced plans for a 14-story "tower" at Jones/Salisbury in connection with Green Square. Do I win?

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State Employees Credit Union has announced plans for a 14-story "tower" at Jones/Salisbury in connection with Green Square. Do I win?

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Haha, technically I think you do, lol. RALNATIVE never specifically said it couldn't already be under construction or approval status. :whistling:

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The Credit Union building does draw attention to important ideas. Smaller local and regional banks in theory understand their regions much better. We all more or less know or think (I think) that Raleigh is stronger than the rest of the country in many economic regards. If that's true our local banks should recognize that and look to position themselves to not just profit from it but help new growth along. The Credit Union building is mostly spec space. BofA et. al. would not build spec space in Raleigh now. Capital Bank is backing Blount Street Commons...a development I think still will do well in the short term.

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Perhaps another credit union? Coastal Federal Credit Union maybe?

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Technically, the topic title doesn't say which downtown in the area... ;) ....so other than SECU's planned one, I'll say SunTrust in Durham. Aren't they supposed to build a new one and turn the old one into a hotel?

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If i'm not mistaken, I'm pretty sure that Suntrust is just trying to stay afloat these days and not so much thinking about building a new tower.

On the other hand, I've got to say that i'm impressed with what I see coming from First Citizens. They have been quitely acquiring smaller and failed banks over the past few years, and beefing up their infrastructure. Now that they have expanded across country, they are at a point where they really need to get their name out there as a major player in the banking industry. One of the best ways to do this is by building a tower in their home territory. For banks, having a mini campus (i.e. North Hills location) is not enough, they usually go the route of making a bold statement with an impressive tower that bears their name and logo. That's one of the main reasons why RBC decided to move it's headquaters from Rocky Mount into a tower in downtown.

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If i'm not mistaken, I'm pretty sure that Suntrust is just trying to stay afloat these days and not so much thinking about building a new tower.

On the other hand, I've got to say that i'm impressed with what I see coming from First Citizens. They have been quitely acquiring smaller and failed banks over the past few years, and beefing up their infrastructure. Now that they have expanded across country, they are at a point where they really need to get their name out there as a major player in the banking industry. One of the best ways to do this is by building a tower in their home territory. For banks, having a mini campus (i.e. North Hills location) is not enough, they usually go the route of making a bold statement with an impressive tower that bears their name and logo. That's one of the main reasons why RBC decided to move it's headquaters from Rocky Mount into a tower in downtown.

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If i'm not mistaken, I'm pretty sure that Suntrust is just trying to stay afloat these days and not so much thinking about building a new tower.

On the other hand, I've got to say that i'm impressed with what I see coming from First Citizens. They have been quitely acquiring smaller and failed banks over the past few years, and beefing up their infrastructure. Now that they have expanded across country, they are at a point where they really need to get their name out there as a major player in the banking industry. One of the best ways to do this is by building a tower in their home territory. For banks, having a mini campus (i.e. North Hills location) is not enough, they usually go the route of making a bold statement with an impressive tower that bears their name and logo. That's one of the main reasons why RBC decided to move it's headquaters from Rocky Mount into a tower in downtown.

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^

Here is the rundown in total assets, ordered from least to most...

North State Bank .....................................................................$571.5 Million

Capital Bank............................................................................$1.7 Billion

First Citizens (recent acquisitions not yet included).........................$17 Billion

RBC Bank USA (not counting its parent)........................................$33 Billion

BB&T (Colonial Bank acquisition not yet included)............................$152.4 Billion

I am estimating that First Citizen's recent acquisitions will put it somewhere around $20 Billion. So really when compared to BB&T, everyone else in this bunch is small potatoes. RBC, however, has the leverage of its parent, which is the 12th largest bank in the entire WORLD, with assets of approximately $1 Trillion US dollars, so they are nothing to sneeze at. Keep in mind too that when RBC Centura grows, its not their assets that are used in making the acquisition, but its parent's assets, so its really hard to separate the parent from the subsidiary.

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I have been told by very good sources that 1st Citizens has no plans and will never have plans to move DT. Their HQ is North Hills and that is where they plan on staying. I believe they bought that building in NHs after ditching the plans to build a half moon building to go with the round bank building at NHs.

I am not sure they own the building DT that holds their name but they sold the property that the RBC building sits on. Not sure they would sell the best lot for a building to come back and build another building.

Now Mr. Holden just died but I know someone who asked him personally and he got very POed and he was told don't bring that subject up again as 1st Citizen is not going to move DT.

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I have been told by very good sources that 1st Citizens has no plans and will never have plans to move DT. Their HQ is North Hills and that is where they plan on staying. I believe they bought that building in NHs after ditching the plans to build a half moon building to go with the round bank building at NHs.

I am not sure they own the building DT that holds their name but they sold the property that the RBC building sits on. Not sure they would sell the best lot for a building to come back and build another building.

Now Mr. Holden just died but I know someone who asked him personally and he got very POed and he was told don't bring that subject up again as 1st Citizen is not going to move DT.

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If that's true, I don't think I could ever be a card carrying member of First Citizens if they're going to sell short on future possibilities so hastily.

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Honestly, I think that was the old CEO and Chairman who made those remarks, but times are achangin...

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What changed is the S.O.B. died (I mean this personally, not just throwing around words). This bank is poised to take a very, very different direction.

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^

The new CEO is the old CEO's son, who also shares his father's views.

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I've always been suprised Bank of America doesn't have a more prominent tower, their current tower just sort of blends in with the background. I've heard this is because BOA doesn't have that strong of a market position in the Triangle and also b/c they've invested so much money in Charlotte....any thoughts?

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Most of the time when a bank like Bank of America, JP Morgan, or Citi has a really big tower, it's the result of acquiring another bank which built that tall tower as its HQ.

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