Thursday, July 31, 2014

REITs getting 'tax creative' (Video)

Former Grocery Bldg Sells for $6.1M

 Millville Equity Investments LLC purchased the big-box retail building at 101 Bluebird Ln. in Millville, NJ from JBM Properties, Inc. for $6.05 million, or about $112 per square foot. 

The 53,963-square-foot former supermarket sits on 7.8 acres in the Southern New Jersey submarket of Cubmerland County. Planet Fitness will continue occupying the building.

JMC Steel Group Sells New Ford Mill Road Industrial Park

Phoenix Corp., doing business as Phoenix Metals Company, purchased the New Ford Mill Road Industrial Park at 600 Dean Sievers Pl. in Morrisville, PA from JMC Steel Group for $6.5 million, or about $33 per square foot.

The two-building industrial site totals 195,217 square feet constructed in 2001 on 20.4 acres in the Bucks County Industrial submarket. The buildings were vacant at the time of the sale, and the new owners plan to occupy them starting in August 2014.

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.
Full story:

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.

Full story:

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.”
Full story:

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. 

Philadelphia Industrial Vacancy Steady at 8.6%

The Philadelphia Industrial market ended the second quarter 2014 with a vacancy rate of 8.6%.

The vacancy rate was unchanged over the previous quarter, with net absorption totaling positive 3,596,954 square feet in the second quarter. That compares to positive 3,102,097 square feet in the first quarter 2014. Vacant sublease space increased in the quarter, ending the quarter at 1,491,782 square feet.

Tenants moving into large blocks of space in 2014 include: Wal-Mart (Distribution center) moving into 1,200,000 square feet at 2785 Commerce Center Blvd, Ocean Spray moving into 980,000 square feet at 9645 West Hills Ct, and Kane Warehousing, Inc. moving into 955,935 square feet at 6 Kane Lane.

Rental rates ended the second quarter at $4.51, a decrease over the previous quarter.

A total of eight buildings delivered to the market in the quarter totaling 3,127,992 square feet, with 8,276,767 square feet still under construction at the end of the quarter.

This trend is compared to the U.S. National Industrial vacancy rate, which decreased to 7.7% from the previous quarter, with net absorption positive 53.93 million square feet in the second quarter. Average rental rates increased to $5.44, and 229 buildings delivered to the market totaling almost 28.6 million square feet.

Wednesday, July 23, 2014

York Co Manufacturing Facility Trades for $4.6M

Kenda Tire Company acquired the industrial building at 3380 Susquehanna Trail in York, PA from Hager Pacific Properties for $4.6 million, or about $41 per square foot.

The 112,500-square-foot manufacturing facility was constructed in 1990 on 10 acres in the Farmbrook Industrial Park. It features nine loading docks, eight drive-in bays, and 23-foot clear heights.

Monday, July 21, 2014

Wells Fargo CEO on CNBC (Video)

Lower Macungie approves 3 million square feet of warehouses

Lower Macungie Township officials signed off tonight on plans to construct just under 3 million square feet of warehouses.

The plans by developer Liberty Property Trust call for the buildings to be developed on 225 acres in the western part of the township, near Spring Creek and Mertztown roads.

The project includes three warehouses which are 1.2 million, 1.1 million and 650,000 square feet in size, as well as a 10,000-square-foot office building, township planning director Sara Pandl said.

Township commissioners voted 5-0 tonight to approve the project. Construction is expected to begin as early as this year and could conclude by 2015, according to Bill Bumber, Liberty Property Trust's vice president of development.

Some residents of Lower Macungie Township and neighboring Alburtis spoke against the project, saying it belonged in an industrial park off a highway rather than miles from two-lane township roads.

"I don't think Lower Macungie Township has any idea how much their quality of life will change," said Rob Mihok, a 12-year township resident. "I just think the township will be changed forever and, in my opinion, not in a good way."

This is the first project proposed for about 700 acres of Jaindl Land Co. farmland due to a land-use deal previously reached between township commissioners and David Jaindl.

That deal, reached in 2010, allowed Jaindl to develop commercial, industrial and residential projects on the land, in exchange for his past agreement to withdraw a quarry project proposed on the site, township officials said.

Commissioner Ronald Beitler said he disagrees with that past land deal, but because it has already been approved he felt ethically obligated to vote in favor of the warehouse project.

"I wish to God there was a way to overturn this, but we can't," he said. "We're locked into it, not only now but for the next 20 years. That's why I'm going to vote yes."

Bumber said Liberty Property Trust is not the developer for any projects on the other Jaindl land outside the 225 acres within this project.

Jason Bartos, who lives on Franklin Street in Alburtis, said he already cannot sleep because tractor trailers driving or idling outside his house; those trucks are coming to and from an industrial park on Schoeneck Road.

"I don't think Lower Macungie understands the magnitude of the quality of life problems caused by their decisions," Bartos said.

Beitler said he had previously expressed concern about the impact of tractor-trailer traffic on Alburtis Road, and had asked if right-hand turns could be stopped altogether off Congdon Hill Road.

"The answer I've consistently gotten is no," he said.

Traffic and stormwater drainage concerns have previously been raised regarding the project, but township engineer William Erdman believes they have all been addressed.

Erdman said certificates of occupancy for the buildings will be not be issued until the developer gets sufficient highway occupancy and traffic permits from the Pennsylvania Department of Transportation.

Regarding stormwater drainage, he said the developer has proposed infiltration of all drainage to the site, far more than required by the township, to reduce discharge as much as possible.

"The impacts have been mitigated above and beyond to the extent possible," Erdman said

Market Trend: Philadelphia Office Vacancy Down to 10.9%

The Philadelphia Office market ended the second quarter 2014 with a vacancy rate of 10.9%. 

The vacancy rate was down over the previous quarter, with net absorption totaling positive 876,918 square feet in the second quarter. That compares to negative 433,098 square feet in the first quarter 2014. Vacant sublease space decreased in the quarter, ending the quarter at 1,262,768 square feet. 

Tenants moving into large blocks of space in 2014 include: Incyte Corporation moving into 191,056 square feet at 1801 Augustine Cut Off; The Harrisburg University of Science & Technology moving into 149,820 square feet at Harrisburg University Academic Center; and Beneficial Mutual Bancorp, Inc. moving into 95,764 square feet at 1818 Beneficial Bank Place. 

Rental rates ended the second quarter at $21.48, an increase over the previous quarter. 

A total of seven buildings delivered to the market in the quarter totaling 413,734 square feet, with 2,116,720 square feet still under construction at the end of the quarter. 

This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.4% from the previous quarter, with net absorption positive 24.53 million square feet in the second quarter. Average rental rates increased to $22.22, and 217 buildings delivered to the market totaling almost 11.4 million square feet.

Pipeline Taking Shared Workspace Concept to Philly

Miami-based Pipeline has signed a lease for 21,000 square feet at The Graham Bldg, located at 1 Penn Sq. W in Philadelphia, PA.

The 25-story, 241,831-square-foot, 4-Star office building was constructed in 1985 on a quarter-acre located across the street from Philadelphia's City Hall and adjacent to world-class museums, performing arts centers, restaurants, nightlife, and shopping. The area is home to numerous small businesses and startups.

Pipeline hopes to capitalize on the growing shared workspace trend spreading the country by opening its second location in Center City's Market Street West submarket. The tenant, recognized for its unique workspace, diverse membership programming, and high-end design, will offer a collaborative atmosphere in the upper floors of the building, boasting an open internal staircase, lounges, flexible workstations, private offices, conference rooms and event meeting space.

"Pipeline was built with the theory that a diverse community with overlapping goals fosters the highest likelihood of success for people within a community," says Todd Oretsky, co-founder, whom, working alongside fellow co-founder Philippe Houdard.

Thursday, July 17, 2014

Equus Capital kills apartment plan, decides to construct office building in Conshohocken

by Natalie Kostelni, Staff writer for the Philadelphia Business Journal
Equus Capital Partners has switched gears with a large site it owns in Conshohocken, Pa., and has decided to construct an office building rather than an apartment complex.
The developer is looking to build a seven-story, 320,000-square-foot structure. The building would sit on West Elm Street and be walking distance of the Conshohocken train station. It would also be out of a floodplain that has bedeviled other existing structures during extended torrential downpours.
The building would be visible from I-476, giving prospective tenants the ability to have signage that would be highly visible from the highway, said Steve Spaeder of Equus Capital, a Philadelphia real estate firm.
Wulff Architects designed the building, which would have a series of on-site amenities that tenants increasingly desire in their offices such as dining, exercise facilities and common areas where people can gather to socialize. In addition, the floorplates are 45,000 square feet, a size that some firms want so they can have several departments on a single floor.
When Equus bought the 20-acre tract in 2011, it planned to construct 300 apartment units as it sought to seize upon what was then a fledgling appetite of multifamily housing development. Now, with so little office space available to lease in Conshohocken, the developer has decided an office building might be a better bet.
The overall vacancy rate of the 3.6 million-square-foot market is about 13.7 percent, according to Cushman & Wakefield’s second quarter market report. That figure doesn’t take into account some leases that have been negotiated in recent weeks but haven’t started, which would push it down a little more.
Other developers also see an opportunity in Conshohocken. Oliver Tyrone Pulver and O’Neill Properties Group also want to construct new office space in the borough and drawn up plans for projects. Keystone Property Group is also looking to construct a mixed-use development at First and Fayette streets in the borough that would include an office component.

Cross Roads Beverage Leases 64,000 Sf

Cross Roads Beverage leased 64,000 sf. at 1001 Tuckerton Court in Muhlenberg Township
The building was previously occupied by W.R. Grace and Company for 20 years.  The building was a free standing 64,000 sf. distribution center.  The building will continue to serve as a distribution center for Cross Roads.

Wednesday, July 16, 2014

Bracebridge Corp Sells Wilmington Office for $3M

BPG Office Partners acquired the office building at 1000 N. French St. in Wilmington, DE from Bracebridge Corporation for $3 million, or about $71 per square foot.

The three-story, 42,223-square-foot office building delivered in 1999 near the East Side Historic District of New Castle County.

Athletic Company Signes 54,000-SF Lease at Syms Bldg

P-One Athletics signed a 54,000-square-foot lease at 1340 Swedesford Rd. in Berwyn, PA. The single-story, 71,000-square-foot flex building was built in 1973 in the Chester County Industrial submarket.

International Commercial Real Estate is set for a boom in second half of 2014 (Video)

Developer making bold real estate play along Route 202 in King of Prussia

by Natalie Kostelni staff writer for Philadelphia Business Journal
For the last several years, a Florida real estate developer has quietly made a big real estate play in King of Prussia.
In the shadow of Simon Property Group’s mammoth King of Prussia Mall, Hector Viñas has assembled a portfolio of 10 properties, most of which front Route 202. His plans entail demolishing what are mostly old, run down structures and constructing new buildings that will house retail space. The play is to lure tenants who don’t necessarily want to be in the mall but outside of it, to capture some of the traffic it generates as a shopping destination.
If you want to get a glimpse of what Viñas has in mind, you don’t have to look far.
A couple of years ago Viñas bought a closed Exxon gas station at the corner of Route 202 and Allendale Road for $1.9 million. He then knocked it down, spent money to clean it up and constructed a structure that comes to the edge of Route 202 that has sidewalks. He leased the space on a long-term basis to Chipotle and AT&T. In April, Viñas sold the property for $8.5 million, according to Upper Merion records.
This time around, Viñas, whose firm is based in Hollywood, Fla., is looking to execute a similar plan but on a grander scale.
He has under agreement: 107 Forge Road; 727-729 and 731 W. DeKalb Pike; 113 Crockett Road; 705-707-709 and715 W. DeKalb Pike; and 611 W. DeKalb Pike. The sales of the properties are pending and will close if and when they successfully go through the township zoning approval process. The sale prices were redacted out of documents filed with the township because the transactions haven't closed.
Here’s the breakdown of what the developer wants to do:
  • At what is now a vacant McDonald’s at 611 DeKalb, preliminary plans call for the construction of a two-story, 5,000-square-foot building and a single-story, 2,500-square-foot building;
  • At 705-715 DeKalb, plans entail constructing a 6,035-square-square foot structure; and
  • At 727-731 W. DeKalb, Vinas is seeking to construct two structures ­— one that is 1,850 square feet and the other 2,500 square feet.
Full story:

PREIT Signs On New Tenants at Moorestown Mall

by Jon Jordan

Philadelphia-based Pennsylvania Real Estate Investment Trust reports the addition of local, upscale boutiques and a fourth premier restaurant to its tenant roster at the Moorestown Mall here.
Erdon and Zeyzani, as well as the area's firstOrangetheory Fitness, are expected to be operating in their new locations by the end of the year, company officials say. The new shops and the fitness studio will be a part of the mall's new "Boutique Row," a segment of high-end, luxury retailers geared toward the fashion-forward, affluent shopper. Zeyzani, a Mediterranean accessories and footwear retailer, will be relocating from nearby Haddonfield, NJ to the Moorestown Mall located at 400 Route 38.
The mall owner also says it signed a lease with local restaurateur Dave Magrogan to open a 7,200-square-foot Harvest Seasonal Grill & Wine Bar at the Moorestown Mall by the end of the year. Harvest will be located next to Marc Vetri's Osteria, Jose Garces' recently opened Distrito, and in close proximity to the new Rizzieri Salon & Spa. The restaurant will include 220 seats in the dining room, 50 seats at the bar, 30 seats on an outdoor patio, a 46-seat private dining room and two chef's tables.
"With the introduction of Boutique Row, Moorestown Mall will offer customers an unparalleled combination of luxury, variety and convenience," says Joseph F. Coradino, CEO of PREIT. "I am thrilled that PREIT has been able to bring South Jersey residents celebrity chef-owned restaurants, an award-winning spa and salon, upscale specialty boutiques and a highly acclaimed fitness studio. These new tenants underscore our successful transformation of the Moorestown Mall into an all-inclusive, desirable location. We continue to execute on our commitment to redefine the traditional shopping experience to the benefit of our loyal customers."
The Moorestown Mall, originally built in 1963, totals a little more than 1 million square feet. PREIT owns and operates more than 30 million square feet of space in properties in 12 states in the eastern half of the United States mainly concentrated in the Mid-Atlantic and Greater Philadelphia markets.

Monday, July 14, 2014

University City High School Site Sold for $25.1M

The School District of Philadelphia has sold 3601 Filbert and 3724 Warren St. to Drexel University City Development LLC for $25.1 million.

The value is in the 14 acres of land, which is set for a $1 billion redevelopment project. The site formerly housed University City High School, Charles Drew Elementary School, and Walnut Center. The new plans include residential, retail, office, and possibly a new school.

Drexel University City Development LLC is a partnership between Drexel University and Wexford Science & Technology LLC.

REIT Purchases Fully Leased R&D Facility

Gramercy Property Trust purchased the flex facility at 175-205 Great Valley Pky. in Malvern, PA from Valley Forge Investment Corp. for $28.4 million, or about $149 per square foot. 

Built in 1981 on 12.9* acres in the Chester County Industrial submarket of Philadelphia, the 191,000-square-foot light manufacturing building is fully leased to a healthcare diagnostic company until 2030 on a triple-net basis. 

Gramercy Property Trust is a fully-integrated, self-managed REIT focused on acquiring and managing income-producing industrial and office properties net leased to high quality tenants in major markets throughout the United States.

Wednesday, July 9, 2014

Modern student housing play (Video)

$260M tax credit proposed to lure energy firm to Camden

by Julia Terruso, Inquirer Staff Writer

n a deal that would be bigger than that offered to the Philadelphia 76ers, the New Jersey Economic Development Authority on Tuesday disclosed a proposal to award Holtec International Inc. $260 million in tax credits to locate some of its operations to Camden.
The credits under a Grow New Jersey Grant would be spread out at a rate of $26 million per year over 10 years.

The award would be the third largest subsidy of any kind awarded in New Jersey and the single largest Grow New Jersey grant. In 2013, the state awarded American Dream Meadowlands $390 million, for an entertainment, shopping mall complex in East Rutherford and Revel Casino received $261.4 million in 2011.
News of the potential project, listed online as part of a meeting agenda for the authority, comes a month after it awarded $86 million in tax credits over a decade the Sixers to build a practice facility and offices on the city's waterfront, moving there from Philadelphia.

Holtec, based in Marlton and Jupiter, Fla., is a multinational power-plant supplier founded by Krishna P. Singh, who has an engineering doctorate from the University of Pennsylvania.
It was not known in what capacity Holtec would operate in Camden or how many jobs it might create there. Pierre Oneid, senior vice president and chief nuclear officer of Holtec, declined to provide details. He said the company would not comment until Thursday, when the development authority was to meet to vote on the proposal and others across the state.

"It would be premature, honestly, and we don't want to interrupt the process," Oneid said.
Camden's business administrator, Robert Corrales, said the city's policy was to not comment on projects until they were formalized. "All I can say is that we welcome any viable business that will create real jobs for Camden residents," he said.

South Jersey Democratic power broker George E. Norcross III, who is chairman of Cooper Health System and Cooper University Hospital in Camden, sits on the board of trustees of Holtec, according to his profile on the website for Connor, Strong & Buckelew, an insurance firm where he is executive chairman.
Norcross could not be reached for comment.

His brother State Sen. Donald Norcross (D., Camden) cosponsored the Economic Opportunity Act of 2013, which created additional incentives for companies to move to Camden. Donald Norcross declined to comment ahead of a formal announcement.

The law paved the way for the 76ers deal, criticized by some community members as too generous without enough local return on the investment. The 76ers must employ 250 people at the facility as part of the tax-credit agreement, but 200 of those employees were already with the organization, CEO Scott O'Neil has said.
At the time of the 76ers deal, Mayor Dana L. Redd said there were more announcements to come.
Holtec manufactures, among other things, equipment for the storage of spent nuclear fuel rods that allow plants to keep rods on site.

The company has supplied technology to 150 U.S. power plants, including more than 80 nuclear ones, according to a 2012 Inquirer article.

In the article, Singh said the company was looking to expand into a new kind of small, modular nuclear reactor that would be built underground.

The development authority's public meeting Thursday is scheduled for 10 a.m. at its office at 36 W. State St., Trenton.

Tuesday, July 8, 2014

Is the Soaring Price of Office Space Warranted? (Video)

Local Investor Acquires Hamlet Shopping Center

Pantano Real Estate acquired the Hamlet Shopping Center at 1035 Walker Rd. in Dover, DE from Thompson & Thompson LLC for $3 million, or about $87 per square foot. 

The 34,605-square-foot retail strip was operating at 24.5 percent vacancy rate at the time of purchase. 

The buyer funded the acquisition in-part with a new loan from Fulton Bank for $1.95 million.

Barry Sternlicht on Chinese money looking for a home (Video)

Monday, July 7, 2014

Emphasizing Industrial Business a Turning Point for Liberty, CEO Says (Video)

Liberty, Comcast Start Development of 59-Story Tower

Liberty Property Trust and Comcast Corp. have started site preparation for the giant telecommunication company's 59-story headquarters building in Philadelphia, described as the largest private development project in Pennsylvania history. 

Comcast and Malvern, PA-based Liberty (NYSE: LPT)in January announced plans to build the Comcast Innovation & Technology Center, which includes 1.33 million square feet of office space and a 222-room Four Seasons Hotel. 

On Thursday, the companies said they've completed the joint venture and development agreements for the building on the 1800 block of Arch Street. Comcast has signed a 20-year lease for 982,275 square feet, about three-quarters of the office space. 

A Liberty spokesman said general contractor L.F. Driscoll is installing fencing and traffic barriers, planning site layout and doing utility and transit connection work. Large-scale excavation of the foundation will begin in mid-July. 

The venture, 80% owned by Comcast, will be managed by Liberty Property Trust, which holds a 20% interest. 

The project will cost about $933 million, not including tenant-funded interior improvements, of which $40 million will come from publicly funded grants from Pennsylvania and the city of Philadelphia for infrastructure improvements and public spaces. Liberty is expected to invest about $185 million in the mixed-use development

Green Street Manor Sells for $5.1M

Green Manor Properties LP purchased the Green Street Manor multifamily building at 1806-1814 Green St. in Philadelphia, PA for $5.05 million, or about $163,000 per unit. 

The four-story, 30,495-square-foot apartment building was built in 1900 in the Fairmount-Art Museum submarket. It is comprised of 31 units that were fully occupied at the time of sale.

Center Square Towers Sold for $31.5M

AIMCO Holdings LP sold the Center Square Towers at 555 N. Broad St. in Doylestown, PA to Zencorr Properties for $31.5 million, or $90,000 per unit. 

The 350-unit, 8-story multifamily complex was constructed in 1975 and features 210 studio apartments and 140 one-bedroom apartments spread across two towers. 

Zencorr Properties was attracted to the complex because of the close proximity to its home base, the strong Doylestown demographics, and walkability to the nearby shops and restaurants. This acquisition represents the largest transaction to-date for the buyer.

Thursday, July 3, 2014

Health Partners Expands at 907 Market St.

Health Partners Plans Inc. (HPP) expanded at the Pennsylvania REIT’s 907 Market St. building in Philadelphia above The Gallery. 

The health insurance organization currently occupies more than 140,000 square feet of office space on the fourth and fifth floors of the building and will be expanding into an additional 70,000 square feet on the third floor in the first quarter of 2015. 

The expansion of HPP signals the next steps in a project that is making an imprint on the retail landscape in Philadelphia. 

PREIT announced in April that the region’s first Century 21 Department Store would open at The Gallery as part of the company’s much-anticipated redevelopment plans for the center. 

“This transaction creates near-term value in filling existing office space,” said Joseph F. Coradino, CEO of PREIT. “With this, we are taking the next step toward creating Philadelphia’s only transit-oriented, retail anchored multi-use property offering accessible luxury retailing and artisan food experiences.”