DC-Based AREP Acquires Conshohocken's Eight Tower Bridge

CONSHOHOCKEN, PA, AND WASHINGTON, DC—Washington, DC-based American Real Estate Partners, which owns and operates class A office assets throughout the Mid-Atlantic region, including 1600 Market Street in Center City Philadelphia, is acquiring Eight Tower Bridge, a 16-story, 347,000 square-foot trophy office tower in Conshohocken, PA, west of Philadelphia.

“With assets located in what are arguably the best submarket in each of Center City and Philadelphia’s suburbs, AREP is excited by its expanding platform in the area and actively working on additional acquisitions to complement its growing portfolio in the market,” says Paul Schulman, AREP principal and chief operating officer.

According to Real Capital Analytics, a proprietary research database, the property is being acquired from a joint venture of Conshohocken-based Oliver Tyrone Pulver Corp. and Barings, a Charlotte, NC-based global asset management firm. AREP says the buyer is an affiliate of AREP’s Strategic Office Fund II, a fully discretionary vehicle, in a joint venture with a single institutional investor that it did not identify.

“In Eight Tower Bridge, we have acquired a best-in-class asset in the very healthy Conshohocken submarket,” says Michael Gribbon, AREP principal and executive managing director. “The supply and demand dynamics of Conshohocken continue to improve, and the tenant community continues to favor this market due to its great rail access, its walkable amenities and its proximity to Philadelphia’s most coveted bedroom communities.”

Eight Tower Bridge represents AREP’s second acquisition this year in the Philadelphia MSA, having previously acquired 1600 Market Street, an 826,000 square-foot high-rise at the epicenter of Center City’s desirable Market West submarket. These acquisitions represent a re-entry into Philadelphia for AREP, as the firm was a prior owner of Two Liberty Place, the iconic class AA 1.25 million square-foot office and condo tower located adjacent to its 1600 Market Street property.

Eight Tower Bridge’s location directly adjacent to the SEPTA Regional Rail line, as well as the key intersection of Interstates 76 and 476, offering swift connections to Center City Philadelphia, Philadelphia International Airport, and the affluent Main Line suburbs.

The property is surrounded by Conshohocken’s dynamic and thriving environment, which includes an abundance of institutionally owned office assets, retail amenities within easy walking distance, premier residential communities, and two hotels. Designed by world-renowned architect Skidmore, Owings & Merrill, Eight Tower Bridge stands as the tallest office building in suburban Philadelphia, boasting a high-quality physical infrastructure, superior views, and attractive finishes within a scenic setting on a premier 45-acre mixed-use development overlooking the Schuylkill River.

AREP has planned dynamic property enhancements designed to activate the lobby with curated food options, the addition of AREP’s branded social and tenant lounge spaces, and a significantly enhanced fitness center. Presently, Eight Tower Bridge is 86%-leased to a well-diversified tenant roster that represents a cross-section of industries.

The seller was represented by Robert Griffin, Matthew Pullen, Michael Margolis and David Dolan of Newmark Knight Frank, from NKF’s Boston and Philadelphia offices.