AMC Delancey acquired the 60,000-sf office building for $4.9 million in 2002 and subsequently invested $3 million in renovations, which included new HVAC, sprinklers, lobby and common areas, and other improvements. Cedar Run was just 19% occupied when AMC Delancey acquired it.
Following the renovations, "We leased it up at above-market rates to its current 100% occupancy during a period of negative absorption in the market," says Andrew Kleeman, VP of asset management. He tells GlobeSt.com the company secured rates "in the low- to mid-$20s per sf when the market was at a few dollars less."
The building, located at 901 E. Eighth St., is of California-style architecture. Kleeman says the distinctive architecture and landscaping contributed to the lease-up and higher market rates. Those qualities along with the upgrades and full occupancy made it attractive to SJS.
"This was an opportune time to sell Cedar Run," says Kenneth Balin, AMC Delancey's president and CEO. "Managing this type of asset is no longer core to our operating strategy." He says the sale of other properties, including the Cast Iron Building in Philadelphia and Quality Center shopping venue in Lancaster, are under review as the company continues to identify operating partners to invest with.
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