Brad Nathanson, senior associate in Marcus & Millichap's Philadelphia office and Brent Waterman, associate in the same office, represented the seller, Fred Lokoff Trust. "Getting this cap rate was very positive for the seller," Waterman tells GlobeSt.com. "Most of our verbal offers were in the 9.5% range with written offers in the low to mid-7% range." Waterman says that most industrial properties in this market trade in the low to mid 8s.

The fact that the Tweeter is in bankruptcy was a concern among the prospective buyers, he says--but the property's location trumped that concern. The two-story, 63,600-sf facility is located just off Route 202--less than two miles from the King of Prussia Mall, the second largest in the country, according to Waterman. The property sits on a 5.6-acre parcel with 2,256 feet of frontage at 320 S. Henderson Rd.

The property attracted local and out of state investors, Waterman adds--including many that were shopping for value-add bargains. "Buyers that have been cautious for the past several years given the run up in pricing are now beginning to dip their feet back in the water with acquisitions. The opportunity to purchase assets with real upside in prominent locations is drawing those buyers back to the market," Nathanson says.