Kairos has been reaping the benefit of the somewhat contrarian investments it made in suburban office product at a time when others were shunning the asset class.

“Triad was pretty contrarian in March 2013. There were a lot of articles in the press about the death of the suburbs,” says Gleason. “We took the contrarian play and bought a property that was only 20 percent leased at the time and needed a lot of capital. We spent the money to over-amenitize the property. We were confident that due to the tightening of the markets around us that we'd be able to lease it up at competitive rates, and that's what happened.”

Occupancy rose in the four years of Kairos' stewardship to about 96 percent, Gleason says.

“We were able to sell it to a buyer who was looking for a long-term credit-worthy rent roll,” he says. “They'll make great cash-on-cash returns, and we were just thrilled to be able to turn the property around.”

Gleason had intimate knowledge of the property, having owned it in another property company earlier in his career.

“The two closest submarkets, Radnor and Conshohocken, were sub-10-percent vacancy and rents were rising fast,” he says. “We really thought we could provide a cost-effective alternative to those markets. If tenants were willing to drive about a mile, they could save 30 percent on their rent. When we delivered the amenities on time and on budget, the tenants validated that and chose Triad.”

Triad was built in 1985. Kairos invested $4 million in capital improvements to reposition the building, making significant interior and exterior improvements including new HVAC systems, newly designed common areas, a renovated 55' atrium lobby with an accenting centered skylight, the Triad Café equipped with full-service corporate catering, the tenant-only Triad Fitness Center with lockers/showers, and the Triad Conference Center. As an additional rare amenity in the Philadelphia suburban office market, Triad offers private executive parking underneath the building, servicing 68 vehicles.

“Triad will always be a very special property to us, as it was the first building in our portfolio,” says Gleason. “We're grateful for having amazing tenants who were patient with us during the significant repositioning phase, as we set our eyes on offering one of the best class A office properties in the Philadelphia metropolitan region.”

Anchor tenants include Liberty Mutual Insurance Company, Genomind, Communications Media, Inc., A.D. Marble & Co., Inc., RatnerPrestia, P.C., ASI Business Solutions, Telerx Marketing, and Triad Café. Kairos increased occupancy from 20 percent to 96 percent, while renewing every expiring tenant lease during its ownership.

Robert Fahey, Jerry Kranzel and Erin Hannan of CBRE represented Kairos and Artemis in the sale of Triad.

“Triad was pursued by a series of local and regional investors,” said Fahey. “They were attracted to the first-class renovation completed by the Kairos team, the strong tenant roster, long-term leases and durable in-place cash flow that Triad had to offer.”

Since acquiring and rebranding as Apex the former Fort Washington Executive Center campus in December 2014, Kairos lured big corporate names with its attractive campus setting and the newly constructed Hub, a dramatic, new glass cube, which serves as the focal point of the campus, complete ‎with fireplace, flat screen TV's and lounge seating.

Tenants enjoy the brand-new amenity spaces, including the Apex Café, Apex fitness center and a 7,000-square foot conference and training center, all of which are offered to Apex tenants on a complimentary basis. Outdoor grounds include seating for functions, casual gatherings with fire pits and a great lawn for outdoor events.

Apex has leased 190,000 square feet of office space, having attracted notable anchor tenants such as Citizens Bank, Allstate Insurance, Lincoln Investments, Impax Labs and Connexin.

“They really bought into the idea of using the property to enable them to attract and retain the best employees they could find,” Gleason says.

Situated on 40 acres, just 16 miles northwest of Philadelphia's CBD, Apex is accessible to the area's two major roadways, just one mile from the interchange of PA Route 309 and the Pennsylvania Turnpike. In addition, the property has direct access to the Virginia Drive slip ramp of the Pennsylvania Turnpike, located just 0.2 miles from the property.

KING OF PRUSSIA, PA—Kairos Real Estate Partners scored a solid return on its sale this month of the Triad building to affiliates of Zamir Equities, selling the four-story, 184,118 square-foot property, located at 2200 Renaissance Blvd., for $30.2 million.

Kairos acquired the property with Artemis Real Estate Partners of Chevy Chase, MD, for $8.1 million in 2013.

Separately, Kairos and Artemis recapitalized their interests in Apex Ft. Washington, a 3-building, 400,000 square-foot class A office campus located at 600, 601, and 602 Office Center Drive in Fort Washington, PA. Artemis has exited the investment, and Kairos retains a minority participation, Kairos president Stephen J. Gleason tells GlobeSt.com exclusively.

An affiliate of Zeke Capital Advisors has acquired most membership interests owned by Kairos and Artemis. New debt financing was provided by Benefit Street Partners of New York. Terms of the transaction were not disclosed.

Kairos has been reaping the benefit of the somewhat contrarian investments it made in suburban office product at a time when others were shunning the asset class.

“Triad was pretty contrarian in March 2013. There were a lot of articles in the press about the death of the suburbs,” says Gleason. “We took the contrarian play and bought a property that was only 20 percent leased at the time and needed a lot of capital. We spent the money to over-amenitize the property. We were confident that due to the tightening of the markets around us that we'd be able to lease it up at competitive rates, and that's what happened.”

Occupancy rose in the four years of Kairos' stewardship to about 96 percent, Gleason says.

“We were able to sell it to a buyer who was looking for a long-term credit-worthy rent roll,” he says. “They'll make great cash-on-cash returns, and we were just thrilled to be able to turn the property around.”

Gleason had intimate knowledge of the property, having owned it in another property company earlier in his career.

“The two closest submarkets, Radnor and Conshohocken, were sub-10-percent vacancy and rents were rising fast,” he says. “We really thought we could provide a cost-effective alternative to those markets. If tenants were willing to drive about a mile, they could save 30 percent on their rent. When we delivered the amenities on time and on budget, the tenants validated that and chose Triad.”

Triad was built in 1985. Kairos invested $4 million in capital improvements to reposition the building, making significant interior and exterior improvements including new HVAC systems, newly designed common areas, a renovated 55' atrium lobby with an accenting centered skylight, the Triad Café equipped with full-service corporate catering, the tenant-only Triad Fitness Center with lockers/showers, and the Triad Conference Center. As an additional rare amenity in the Philadelphia suburban office market, Triad offers private executive parking underneath the building, servicing 68 vehicles.

“Triad will always be a very special property to us, as it was the first building in our portfolio,” says Gleason. “We're grateful for having amazing tenants who were patient with us during the significant repositioning phase, as we set our eyes on offering one of the best class A office properties in the Philadelphia metropolitan region.”

Anchor tenants include Liberty Mutual Insurance Company, Genomind, Communications Media, Inc., A.D. Marble & Co., Inc., RatnerPrestia, P.C., ASI Business Solutions, Telerx Marketing, and Triad Café. Kairos increased occupancy from 20 percent to 96 percent, while renewing every expiring tenant lease during its ownership.

Robert Fahey, Jerry Kranzel and Erin Hannan of CBRE represented Kairos and Artemis in the sale of Triad.

“Triad was pursued by a series of local and regional investors,” said Fahey. “They were attracted to the first-class renovation completed by the Kairos team, the strong tenant roster, long-term leases and durable in-place cash flow that Triad had to offer.”