By Paul Schwedelson – Reporter, Philadelphia Business Journal
Owner D2 Capital Advisors is exploring new uses for 1000 Campus Drive, a four-story office building in Collegeville.
With uncertainty facing the office market, D2 Capital Advisors is keeping all options open for its vacant four-story, 81,400-square-foot office building in Collegeville.
D2 recently arranged an $8.5 million refinancing of the property, giving the company flexibility for a potential conversion of the building.
David Frankel, D2's chief operating officer, said the simplest option would be to continue with office space, but the building has sat vacant for the past two years. The property could be converted for life sciences, residential, self storage or other uses.
“We’re talking to different groups that have interest in it,” Frankel said. “We’re exploring what those options are.”
D2 Capital Advisors bought the building at 1000 Campus Drive in 2017 for $13.3 million. The building was fully leased at the time to Iron Mountain, a Boston-based information management company that had occupied the space since 1999. In late 2020, Iron Mountain (NYSE: IRM) struck a deal with D2 to leave the building despite having several years left on the lease. Iron Mountain moved to Royersford, consolidating its operations and leaving the building empty.
D2, headquartered in East Norriton, initially marketed the building to tenants and prospective buyers, but the effects of the Covid-19 pandemic and resulting rise of remote work eroded demand for office space dramatically.
Frankel and D2 Capital Advisors Vice President Jack Cortese secured refinancing of the property through TriState Capital Bank. Besides refinancing acquisition debt, the loan will be used to pay for improvements to the building. Cortese said securing the loan gives D2 an advantage over competitors that may be marketing conversion opportunities because the money is already in place rather than needing to line it up later on.
Full story: https://tinyurl.com/yck8kw7r
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