YARDLEY, PA—Advalurem Group has acquired an ownership interest in 1000 Floral Vale, a class A, LEED Gold-certified office building located in Yardley, PA.
1000 Floral Vale is the newest and most sophisticated building in its submarket. Built in November 2009, the 89,000 square-foot office building meets institutional, energy-efficient and environmentally safe design standards, earning it a LEED Gold certification, among other accolades.
The property is located in Lower Makefield Township, a high-income demographic area of northern Philadelphia, proximate to many employment demand drivers, transportation networks and commercial retail nodes.
“This is an area that grabbed our attention,” says Gabriel Pozo, principal and founder of Advalurem Group. “Lower Makefield Township is one of Philadelphia's more prominent submarkets. It is ranked the #1 wealthiest area in Pennsylvania and is consistently featured in CNN/Money's top rankings of 'Best Places to Live' in the U.S.”
The property is currently 80% leased; primarily to two 'investment grade' tenants on long-term leases with extension options. All tenants entered into lease agreements post-recession and represent first generation space at market terms. The business plan calls for the absorption of available space and moderate exterior capital improvements to enhance the user experience and marketability of the Property.
Advalurem Group's local partner negotiated an attractive going-in yield and $214 per square foot due to the seller's need for liquidity. The purchase price represents a significant discount to replacement cost as valuations were much higher during the last real estate cycle. The re-setting of basis from the developer's building costs allows Advalurem Group and its local partner, Pembroke Hobson, an opportunity to competitively price the remaining space, leading to stable cash flow and upside pricing potential.
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Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
