Friday, September 19, 2014

King of Prussia office building comes up for sale; could trade for $200 per square foot

by Natalie Kostelni, Philadelphia Business Journal
A local real estate fund is looking to sell 150 S. Warner Road in King of Prussia, Pa., two years after it acquired it.
The four-story building totals 155,000 square feet and for years, had gone under the name Walnut Hill Plaza. It is 97 percent leased up and expected to trade in excess $200 per square foot.
A fund comprised of Miller Investment Management and Hayden Real Estate, both locally owned firms, bought 150 S. Warner Road in 2012 for $11 million through an auction process. It had been given back to the lender by its previous owner, Thomas Properties Group, and was 50 percent vacant at the time.
The MIM-Hayden fund plowed $2 million into the building putting in a new lobby, bathrooms and common areas, and upgrading the HVAC and elevator systems.
With the renovations complete and the building leased up, the timing is right to sell the building, said Tony Hayden Jr. of Hayden Real Estate. The King of Prussia area is also seeing a lot of momentum as development activity, from residential to retail to build-to-suits, has been ramping up.
“This is something we’d love to hold forever but our fund has a shelf life,” he said.
There’s also not a lot of competition on the market. One of the last large office buildings to trade was 1000 Continental Drive, a 202,425-square-foot building that sold in February for $63 million.

Full story:

Sale pending for Finnigan's Wake

by Michael Klein, Philadelphia Inquirer
Something is up at Finnigan's Wake, the sprawling Irish pub that for 17 years has been a gateway to Northern Liberties at Third and Spring Garden Streets.

It's been open only infrequently on recent weekends and for private parties and is being prepped for a sale, according to people close to the restaurant.

It had been listed for $3.9 million.

Settlement is expected within six weeks, and the prospective buyer - an investment group - has not disclosed to my sources what the future is.

Finnigan's - whose colorful Spring Garden Street facade resembles a block of shops - has long been a political hangout, given that the managing partner is Mike Driscoll, a candidate for state representative.

Update: Co-owner Chuck Volz confirmed that Finnigan's is closed and under agreement of sale.

Advance Realty, Davis Companies Acquire MontCo, PA High Tech Facility

A joint-venture partnership of Advance Realty and The Davis Companies has acquired 2750 Morris Road, a 675,000-square-foot high-tech assembly and warehouse facility located in Lansdale, Montgomery County, PA.

Located near the northeast extension of the Pennsylvania Turnpike, 2750 Morris Road has convenient access to key arteries, including Routes 202, 309 and 63, and has direct frontage as well as visibility from the Pennsylvania Turnpike.

“2750 Morris Road offers significant in-place infrastructure at below replacement cost rents,” says Peter Cocoziello, president and CEO of Advance Realty. “Both Advance Realty and The Davis Companies have deep experience adding value to properties so they can realize their significant underlying potential, and we look forward to seeing this asset fully-leased to companies looking to take advantage of the property’s inherent value.”

Aerial view of 2750 Morris Rd., Lansdale, PA
 “In addition to a central location in Montgomery County, which boasts one of the state’s most robust economic corridors, 2750 Morris Road represents an ideal venue for companies that are looking for highly improved industrial space at competitive rents to accommodate their growth,” says Richard McCready, president of The Davis Companies.

Originally an electronics plant for the Ford Motor Co., 2750 Morris Road has approximately 570,000 square feet of climate-controlled technology, assembly, warehouse, and production space and 105,000 square feet of two-story office space.

The property has dual substation power feeds, systems for delivery of chilled water and compressed air, and five Diesel generators to provide continuous power backup without interruption.

The temperature- and humidity-controlled environment makes the facility suitable for companies seeking versatile, high-quality warehouse, manufacturing, or assembly space.

The property currently has 350,156 square feet of warehouse/manufacturing space and 70,442 square feet of office space available for lease.  Campus tenants include Vygon Corporation, Metso Corporation and Fox Bindery.

Entrance to 2750 Morris Rd., Lansdale, PA
The new ownership will reposition and re-tenant the property with a comprehensive capital improvement program that includes roofing, flooring and common area upgrades.

Christopher M. Bellapianta represented the JV partnership in the transaction. Bellapianta serves as director of finance and acquisitions for Advance Realty, a leading northeastern US owner and developer of commercial, multi-family, R&D, retail, mixed-use, and flex-space properties.

Managing director Greg Nalbandian of NorthMarq Capital arranged debt financing through Wells Fargo for this acquisition.

Thursday, September 18, 2014

Pilgrim’s Pride Corp Sells Multiple Properties for $4.2M

Pilgrim’s Pride Corporation sold two industrial buildings and a parking lot across Pennsylvania to Bergeys Realty Co. for $4.25 million.

The deal totals 181,488 square feet and includes industrial buildings 471 Harleysville Pike in Franconia, 567 Allentown Rd. in Telford, and a parking lot at 455 Harleysville Pike in Harleysville, PA.

Cloverly Park Apts Sold for $6.4M

Castellan Real Estate Partners and GRJ purchased the Cloverly Park Apartments at 437-445 W. School House Ln. in Philadelphia, PA from Post Brothers Apartments, Inc. for $6.38 million, or about $123,000 per unit. 

The 26,150-square-foot multifamily building was constructed in 1928 and renovated in 2009. The building is located in Germantown submarket.

Advalurem Group Joint Venture Acquires Yardley PA Office

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.