Tuesday, July 30, 2019

Brandywine to Build 100,000 SF Office Building in King of Prussia

by John Jordan Globest.com
Brandywine Realty Trust reports it demolition activities began this month on its project to redevelop 650 Park Ave. here into a new 100,000-square-foot office building.

The project is expected to be delivered in the fourth quarter of 2020. The development follows the highly successful ground up development of 933 1st Ave. for single tenant, GeoBlue, and the $29.7-million redevelopment of 500 N. Gulph, now home to CSL Behring.
The Philadelphia-based firm did not release development costs for the new project.

Brandywine Realty Trust has hired Coscia Moos Architecture, a Philadelphia-based architectural design firm, for the redevelopment of 650 Park Ave., which will transform the property into a four-story, versatile workplace with open floor plates and customizable layouts that can be tailored for single, or multi-tenant users.
“King of Prussia is among the most successful regional economic hubs in the nation,” says Jerry Sweeney, president and CEO of Brandywine Realty Trust. “650 Park Avenue boasts a premier location in the heart of King of Prussia, and to attract leading businesses and talent, we elected to reinvent the property to deliver a highly desirable asset that will rival the quality and appeal found in urban workplaces.”

Brandywine notes that four new corporate headquarters opened last year in King of Prussia, totaling 265,000 square feet of office space, while 3,000 new multifamily units have been delivered in the market between 2016-2018.

Among the planned amenities at the property include a number of open-air amenity spaces and communal work environments designed to promote team productivity, and individual wellness and leisure. A fourth-floor terrace will serve as a flexible activity space, ideal for a variety of events from morning yoga classes, to lunch meetings, and evening gatherings.
The second and third floors of the property will feature private balconies, while amenity space on the east side of the building will be designed to accommodate group lunches, meetings, and gatherings with easy access to a 2.6-mile First Avenue Linear Park and trail, a new public recreational amenity that Brandywine will help deliver in collaboration with Upper Merion Township and King of Prussia District. 650 Park Ave. will also be WELL and Fitwel certified.

“Brandywine’s new office building will be a wonderful addition of King of Prussia, and the design beautifully complements the First Avenue Linear Park project, which is transforming underutilized, private lawns into a cohesive, active and beautiful public amenity,” says Eric Goldstein, executive director of King of Prussia District. “Brandywine’s investments continue to foster substantial economic growth and elevate KOP’s prominence in this Philadelphia submarket.”

On July 22, Brandywine Realty Trust reported second quarter results that included its net operating income, excluding termination revenues and other income items decreased (1.7%) on a GAAP basis and increased 1.6% on a cash basis for its 75 same store properties, which were 93.0% and 92.8% occupied on June 30, 2019 and 2018, respectively.

The firm leased approximately 651,000 square feet and commenced occupancy on 316,000 square feet during the second quarter of 2019. The second quarter occupancy activity included 96,000 square feet of renewals, 140,000 square feet of new leases and 80,000 square feet of tenant expansions. The firm also reported it had an additional 482,000 square feet of executed new leasing scheduled to commence subsequent to June 30, 2019.

At June 30, 2019, the firm’s core portfolio of 92 properties comprising 16.4 million square feet was 93.0% occupied that were currently 95.9% leased (reflecting new leases commencing after June 30, 2019). Brandywine Realty Trust’s core focus is in the Philadelphia (New Jersey), Austin and Washington, D.C. markets.

“We have made excellent progress on our 2019 business plan,” Brandywine’s Sweeney stated when announcing the firm’s second quarter financials. “Market conditions remain strong and we are now 99% executed on our 2019 speculative revenue target. In addition, we are increasing several of our key leasing plan metrics, including our mark-to-market rents on both a GAAP and cash basis.”

He added that in Philadelphia the firm achieved a significant milestone by receiving zoning approval for its entire Schuylkill Yards development site in University City.

“With the Schuylkill Yards zoning approval, we can now move forward on our mixed-use development totaling more than 5 million square feet featuring office, resident and life science components.,” Sweeney noted.

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