Natalie Kostelni Reporter Philadelphia Business Journal
Keystone Property Group has sold a preferred equity stake in a new 429,122-square-foot headquarters built for AmerisourceBergen Corp. to a Washington, D.C., real estate firm in a deal that sources say is valued at tad less than $340 million.
Terms of the transaction weren’t disclosed and neither Keystone nor PRP Real Estate Investment Management, the firm that made the acquisition, would comment on the financial details of the deal. PRP acquired an 89% interest in the Conshohocken building, leaving Keystone to control the remainder.
In addition to value-add apartment properties, PRP buys office buildings leased to single tenants or that serve as a headquarters for a company. This is the firm’s first office acquisition in the Philadelphia area.
“It was one of the most complicated deals we have done,” said Paul Dougherty, president of PRP. “The pricing we needed to achieve to make the numbers work with the lenders and getting a loan capitalize like this in Covid isn’t that easy. We put together a syndication of four lenders to fund the debt. To get that done in this environment is easier said than done.”
The project is part of the bigger Sora West mixed use development in Conshohocken. PRP first became involved in trying to work out a deal in September. By November, the firm was fully engaged in hammering out the transaction.
Part of what made the deal so complex is the project has a $39.5 million EB-5 mezzanine loan and the building is still under construction though nearing completion. “We needed to ensure the EB-5 mezzanine loan stayed in place yet we were coming into it during construction,” Dougherty said. “No lender wants to come in mid-stream in construction. It was not an easy process.”
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