[IMGCAP(2)]It has been well occupied until a third-floor tenant vacated approximately a year ago, according to Michael Corenzwit, president and CEO of Corvest. He and Asher Hyman, also a Corvest principal, are general partners in the acquiring entity along with Kevin Silverang and Robert Jacoby.
The new owners plan to invest "upwards of $1 million to return the property to true class A status," he says. A new roof, HVAC system and signage; resurfaced parking areas, and renovation of all common areas are among the upgrades planned. Corvest is traditionally a value-add buyer.
The owners have arranged a long-term lease extension with K.W. Tunnell, a provider of consulting services to the US government, which currently occupies the entire first floor. A new tenant, Phoenix Data Systems Inc., has signed a lease for 16,982 sf on the third floor, and Corvest itself plans to relocate to 2,182 sf on the second floor. "The building will be 95% occupied by January," says Corenzwit, and Corvest Realty Management Inc., the buyer's affiliate, is managing the property.
The building is located on 3.7 acres with access to main interstates and Septa rail service. The current asking rent rate is $23.50 per sf, plus electric, according to Corenzwit, who believes there is upside potential "through future rent increases and appreciation in an improving suburban market." Financing of an undisclosed amount was provided by Sovereign Bank and arranged by US Realty Capital. Carl Neilson of the Philadelphia office of Grubb & Ellis was the sole broker in the sales transaction.
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