The center is 100% occupied at an average rental rate of $3.42 per sf. Half of the space is leased by Exel Logistics. Keystone anticipates a rise in rental rates from the $3-per-sf it is currently receiving on the older buildings in the property once Exel renews its existing lease or new tenants are found.
The cost of new construction here is estimated at between $37 per sf and $39 per sf in contrast to Keystone's acquisition cost of $32 per sf.
The seller of the asset is Chicago-based Capital Lane Property Holding LP. Michael Hines, James Vesey and Michael Blunt of Philadelphia-based Cushman & Wakefield of Pennsylvania Inc., represented Capital Lane in the transaction.
The purchase of Capital Business Center follows Keystone's mid-February, $20.25-million acquisition here of a 500,670-sf property that is 100% leased to a Quaker Oats subsidiary.
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