WAYNE, PA-New leases for an aggregate of 82,540 sf have taken occupancy in Valley Forge Office Center to 80%. Keystone Property Group acquired the six-building, 515,795-sf complex for $64 million in September 2005.
Conshohocken-based Keystone specializes in acquiring properties that Bill Glazer, its president, describes as “functionally obsolete and capital-starved.” The Valley Forge complex, which was built in the 1970s, is among them and so is the two-building, 140,000-sf Devon Park II, also located in this suburb, which Keystone acquired in the same year. The redevelopment and lease up of both is ahead of schedule.
Stephen Kriz and Steve Cousart of the local office of CB Richard Ellis represented Keystone in the three new leases for the Valley Forge center on E. Swedesford Rd. The largest is 39,463 sf in the 656/676 buildings by Signal Holdings LLC. Fred Hesser of the Hesser Group represented the tenant.
Robert Half International inked a lease for 14,790 sf at the same address. Carolyn Sica of CBRE represented this tenant in the negotiations.
The two adjacent buildings are currently being expanded by 27,000 sf and joined by a three-story, 5,400-sf atrium lobby. The buildings also have all new exteriors featuring a glass façade. Both new tenants will move in during the first quarter of 2008, taking occupancy in the structures to 52%. “That is 40,000 sf ahead of schedule,” Greg Hansen, Keystone's SVP of marketing and development, tells GlobeSt.com. He says Keystone invested $36 million to redevelop the entire complex.
Elsewhere in the complex, Affiliated Distributors has signed a lease for 28,287 sf in the 500 Building. Jeff Mack of locally based GVA Smith Mack represented the tenant, which will relocate its headquarters from King of Prussia.
The value of the leases is undisclosed. The published price for office space in the 656/676 building is $32 per sf, and the asking rate in the 500 Building is $25.50 per sf, according to Hansen. The three leases take overall occupancy in the park to 80%.
Meanwhile, Guardian Life Insurance has signed a five-year lease for 3,196 sf in Devon Square II at 744 W. Lancaster Ave. Cousart and Steve King of CBRE represented Keystone, and Gene McHale of Conshohocken-based Beacon Commercial Real Estate represented Guardian. The agreement is valued at approximately $500,000.
These buildings were completed in 1984 and 1985 and had a vacancy of 57% at the time Keystone acquired the complex. Keystone invested more than $6 million in upgrades, which include new HVAC systems, glass curtain walls, renovated lobbies and common areas, granite flooring and new landscaping and vehicle entrance. This lease takes the property's occupancy to 64%.
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