Wednesday, July 30, 2014

Comcast scouring office market for more space

by Natalie Kostelni, Staff writer for the Philadelphia Business Journal

Comcast Corp., continuing to grow, is out in the Center City office market looking for some extra space.
The cable company is seeking 65,000 to 75,000 square feet off additional space, according to people familiar with the matter. The company also wants the ability to expand if it needs to and that means just a few downtown office buildings can accommodate that arrangement. The short list of properties that could handle that assignment include 11 Penn Center, 10 Penn Center, Centre Square and Two Logan Square.
What’s more is it wants the space soon ­— beginning in October. Comcast would like to lease the space until the end of 2018 when its new Comcast Innovation & Technology Center is scheduled to be completed. The space need isn’t related to the proposed merger between Time Warner but growth the company is experiencing, said people with knowledge of the situation.

DrugDev Moving to KOP

by Natalie Kostelni, Staff writer for the Philadelphia Business Journal
DrugDev signed a lease to relocate its North American headquarters to the King of Prussia area from Audubon, Pa.

The company signed a lease on 31,000 square feet at 1170 Devon Park Drive. Liberty Property Trust owns the 88,000-square-foot building. The Malvern, Pa., real estate investment trust recently completed $2.5 million in renovations to the structure including expanding the lobby with an open staircase, installing terrazzo flooring and putting in new restrooms.

DrugDev, which helps companies do drug trials together, said in a statement that the new building will give it room for growth and will provide amenities such as a fitness facility to its employees. DrugDev will be moving from 1000 Madison Ave., which is less than five miles from its new headquarters. It has corporate offices in London.
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Wells Fargo Mid-year Economic Outlook – 2014 (Video)

The Gallery is getting $107M Redevelopment

Joseph DiStefano, Staff writer at Philadelphia Inquirer

California-based Macerich Co., which owns 55 U.S. shopping centers including the Deptford Mall, will invest $106.8 million in a joint venture to redevelop the Gallery at Market East and offer "accessible luxury retailing" there, Pennsylvania Real Estate Investment Trust, owner of the 1.4 million-square-foot Center City shopping complex, said Tuesday.

Century 21, a New York fashion chain, is remodeling space in the former Strawbridge & Clothier flagship store at the east end of the Gallery at Eighth and Market Streets, with an October opening planned that PREIT has said will help anchor the mall's renovation.

The Gallery location will be Century 21's first outside metropolitan New York City, where it has eight stores. The chain offers discounted designer clothing, housewares, cosmetics, shoes, luggage, and more.

Kmart shut its Gallery store earlier this year, making another two-story space available at the mall's 10th Street side.

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Tuesday, July 29, 2014

1835 Market St. hits the market, could trade for more than $100M

by Natalie Kostelni, Staff writer for the Philadelphia Business Journal

In 2002, a joint venture involving the California State Teachers Retirement System bought 1835 Market St. in Center City for $80 million. Now CalSTRS has put the office tower on the market and is hopeful a buyer comes along to pay $100 million for the building.

“We think it will be around $100 million if not a little more.”

The 29-story property has 660,343 square feet of office space, 26,160 square feet of retail and a three-story, underground parking garage with 176 spaces. The building, which was once known as 11 Penn Center, was constructed in 1986. Klehr Harrison is one of its anchor tenants. Its office space is just 75 percent occupied and 159,182 square feet is vacant.

The property presents a value-add opportunity for a new buyer. Aside from filling the vacancy, some of the building’s common areas, such as the lobby, could use some sprucing up, he said. And, then there’s the plaza.
“We think the way that is situated on Market Street creates an opportunity to create some additional square footage.”
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Future Wegmans Parcel Sold in Glen Mills

by John Jordan

Chadds Ford Investors, LP has acquired a nearly 30-acre parcel of land here that will be the site of a Wegmans store.

The deal involves 29.5 acres of land on Route 202 and the Route 1 loop road that is located southwest of the intersection of Routes 1 and 202. The seller was D.O.H. Family, LP. No financial details of the transaction were released.

Wegmans has leased a portion of the site from Chadds Ford Investors for a 140,000-square-foot retail store that is scheduled to open in the fall of 2015. “Chadds Ford Investors, LP will also build an additional 40,000 square feet of retail space on the site. Chadds Ford Investors, LP will be constructing a new portion of the loop road and bring all utilities to the site.”

“When the new Wegmans is completed it will be 16 miles from the store in Malvern and is ideally placed to serve Delaware County, southern Chester County and northern Delaware. When the new extension of the loop road is completed the property will have easy ingress and egress from both Routes 1 and 202."

Friday, July 25, 2014

Equus Capital Leases About 774,000 SF in Second Quarter

by John Jordan
Locally-based private equity real estate fund management firm Equus Capital Partners, Ltd. reports its operating affiliates executed 773,746 square feet of new and renewal leases in the second quarter of 2014.
More than 45,000 square feet in retail lease transactions were inked at the Shopping Centers at East Gate complex in Mount Laurel, NJ. The firm reports that retailer HH Gregg signed a 25,263-square-foot lease at the East Gate Shopping Center. 
Also at the East Gate complex, Old Navy renewed its lease for 20,000 square feet at East Gate Shopping Center. 
Equus Capital also reports that Allstate signed a lease renewal for 58,422 square feet at One Meridian Drive in Reading, PA. 
Notable deals outside the Pennsylvania/New Jersey region included a lease for 121,835 square feet at Beltline Center in Raleigh, NC with an undisclosed tenant. 
Xerox State Healthcare and Casa Esperanza signed respective lease renewals of 45,522 square feet and 25,389 square feet at Sumner Business Park in Raleigh, NC.