The 251,751 sf warehouse in the 250-acre Valley Forge Corporate Center at 2621 Van Buren Ave. was sold to Montreal-based Moteli Property Group for nearly $25.3 million. Comcast Corp., PayChex, Texas Instruments and PJM Interconnection are all tenants in the building. ComCast has 47,000 sf of warehouse space in the building through the year 2017 that will then be converted to office.
"This building has a great rent roll, great credit and great tenants," Michael Hines, an EVP at CB Richard Ellis, tells GlobeSt.com. "This is sort of a sweet spot, what we call Core Plus properties. They have good credit, good terms, value add potential and good, consistent, reliable rents."
The building was completed in phases between 1969 and 1986. The warehouse was transformed partially to office and warehouse facility from industrial property with $10 million in capital improvements for the past 10 years. Now much of the building has class A office space with up to 12 foot ceilings, new windows, individual tenant entrances and refurbished common areas.
The building was 92% occupied at the time it was put on the market, and 96% at the time it was sold. "You can really see the value of this building. Plus, it has enough parking for the conversion from warehouse to office," says Hines.
Selling the building was a five-to six-month process, according to Hines. The building sold for $95.33 per sf, to which Hines says, "it is consistent with the market. When you've got a building with office space, manufacturing space and warehouse space, a building can be all over the place in rent."
"Core Plus is what everybody wants right now," Hines says. "These deals are the easiest to finance so everybody wants them. King of Prussia has always been a really good market. It has four major roads coming into the area." The 2621 Van Buren Avenue building is located close to Trooper Road, RouI-76 and I-276.
Over in Lancaster, PA, an unnamed NJ-based buyer closed on a 70,724-sf, 20-year-old industrial building with a single tenant for $5.6 million. The building is situated on an 18-acre plot of land and offers room for expansion of the site. Since the property opened in 1988, Actuant has been the only tenant. The buyer paid $79.89 per sf, which is above average.
"The price per sf might be high for a Lancaster property, but the tenant still has a 10-year lease with nine and a half years left on it," David Thurston, the Marcus & Millichap broker on the deal tells GlobeSt.com. Thurston, from the Marcus & Millichap New Jersey office, has represented the buyer in several transactions in the past.
The buyer was not named in the deal. The deal to sell was in the works for about four months, and was brought together Thurston from the New Jersey offices of Marcus & Millichap as well as members from the Philadelphia office of the national firm.
"The real story is that we worked together as good partners and we have good listeners and good people working for us," says Thurston. "This shows the cooperation among the offices and the agents."
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