Thursday, November 30, 2023

The Rescue Capital That's 'Saving' Commercial Real Estate (Video)

Endurance sells 5-building industrial portfolio; NoLibs project secures $55.7M construction loan

 By Paul Schwedelson – Reporter, Philadelphia Business Journal

A roundup of recent real estate news and transactions across the Philadelphia region:

$17 million

Camden-based logistics company NFI Industries paid $17 million for a 330,000-square-foot industrial building at 1515 Burnt Mill Road in Cherry Hill, according to Camden County property records.

NFI bought the property from Burnt Mill Group LLC, which acquired the property in 2009 for $2.3 million from Vineland Construction Co.

The property is near I-295 off Haddonfield-Berlin Road.

The Class B industrial property was built in 1960. In 2020, Devereux Advanced Behavioral Health New Jersey leased 26,500 square feet in the building.

$55.7 million

Summit, New Jersey-based Saxum Real Estate closed on a construction loan for $55.7 million for the second phase of its 466-unit development in the Northern Liberties section of Philadelphia. Phase 2, which will include 187 luxury apartments, is expected to cost $96 million with funding from a combination of equity and the construction loan.

The project site is located at 700-30 N. Delaware Ave., near the Delaware River waterfront in a part of Northern Liberties booming with new development.

Corebridge Financial, previously known as AIG Life & Retirement, provided the construction financing. Corebridge also provided a $77.5 million construction loan for the project’s first phase, which features a seven-story, 279-unit building at 711-35 N. Front St.

339,136 SF

Boston-based Taurus Investment Holdings bought a portfolio of five Class B industrial buildings in South Jersey from Wayne-based Endurance Real Estate Group. The portfolio totals 339,136 square feet and the five buildings are fully leased to 22 tenants.

Taurus declined to disclose the purchase price.

The properties are:

600 Delran Parkway, Delran (87,827 square feet)

601 Delran Parkway, Delran (57,930)

603 Heron Drive, Swedesboro (43,250)

614 Heron Drive, Swedesboro (46,888)

1 Killdeer Court, Swedesboro (103,241)

Taurus plans to build a 64,500-square-foot industrial building on a parking lot adjacent to the property at 600 Delran Parkway. The firm also plans to install rooftop solar panels on the new building and four of the existing buildings, reducing the portfolio’s annual carbon emissions by more than 300%.

Taurus’ nationwide industrial footprint includes more than 18 million square feet across 12 states.

Full story:

Wednesday, November 29, 2023

Comparing Philadelphia’s Office Performance with Other Major US Markets

By Brenda Nguyen, Costar

In the face of a nationwide, three-year trend of companies reducing the overall size of their offices, the Philadelphia metropolitan area has been weathering the storm better than several other major U.S. office markets. While Philadelphia saw nearly 2 million square feet of space returned to the office leasing market in the past year, nine of the 15 largest office metropolitan areas experienced even higher levels of unwanted office space as a percent of the total inventory returned by office occupiers.

This snapshot analysis looks at absorption rates, which is the pace at which occupied space changes over time. The annual absorption rate, calculated by dividing a market’s 12-month net absorption by its total office space, provides another perspective on leasing performance while accounting for market size differences. For instance, an absorption loss of 1 million square feet has very different implications for an office market the size of New York City, which has 980 million square feet, compared to Philadelphia's 330 million square feet of office space.

As of the fourth quarter, the U.S. recorded nearly 62 million square feet in negative absorption, resulting in an annual absorption rate of negative 0.7%. Philadelphia's absorption rate of negative 0.6% aligns closely with the national average. This reflects a broader trend where Philadelphia closely follows national office performance. The U.S. and Philadelphia each experienced a 430-basis-point increase in office availability since early 2020, even though Philadelphia's availability rate has historically held lower than the national average.

Meanwhile, nine of the 15 largest U.S. metropolitan areas logged even larger negative annual absorption rates than the national annual average.

San Francisco led the nation with a negative absorption of 9.3 million square feet, reflecting a negative 4.7% absorption rate, followed by Seattle which posted a negative 1.9% absorption rate and Denver at negative 1.5%. In contrast, Houston was the only metropolitan area to experience positive absorption at 900,000 square feet, equating to a 0.3% absorption rate. Minneapolis and Washington D.C., both logged a negative 0.5% rate, on par with Philadelphia's.

These figures only provide a snapshot of the past 12 months, so it's essential to recognize that conditions affecting the office market will continue to evolve over the next year. With more office leases set to expire throughout the country, rankings based on recent absorption rates may shift considerably across these metropolitan areas.

Each region’s ability to adapt to these changes will continue to be influenced by its distinctive economic composition, regional dynamics and local public-private leadership.

Monday, November 20, 2023

5-building Bala Plaza complex sells for $185M; buyer to move forward with redevelopment plan

 By Paul Schwedelson – Reporter, Philadelphia Business Journal

FLD Group and the Adjmi family have acquired the Bala Plaza office complex from Tishman Speyer for $185 million and will move forward with an already approved redevelopment plan for the Bala Cynwyd property.

The transaction is one of the largest multi-tenant suburban office sales in the country this year, according to the buyers.

Bala Plaza’s 1.1 million leasable square feet of space is spread across four towers — One Bala Plaza, Two Bala Plaza, Three Bala Plaza East and Three Bala Plaza West — as well as a freestanding Saks Fifth Avenue department store off City Avenue near Monument Road, less than a mile from I-76.

New York-based Tishman Speyer acquired the property in 2004 from GIC Real Estate as part of a $1.85 billion deal for a larger 7.3 million-square-foot portfolio that included 12 office buildings in eight cities.

The buyers plan to follow through on redevelopment plans for the 61.4-acre Bala Plaza site previously put forth by Tishman Speyer. The master plan, which was recently approved by Lower Merion Township, features 2.1 million square feet of new development with multiple retail sites, a 168-room hotel, approximately 750,000 square feet of office space, and 750 residential units.

“The ownership group is committed to being thoughtful stewards of one of the region’s most prestigious assets and sees tremendous value in the future of Bala Plaza and of Bala Cynwyd as a whole,” FLD Group and the Adjmi family said in a statement to the Philadelphia Business Journal. “They are confident in their ability to execute the vision to create an experiential live work play campus.”

Eatontown, New Jersey-based FLD Group also owns an office building at 150 Monument Road, just north of the Bala Plaza property, and has increased its Philadelphia market presence in recent years. It bought 45 Liberty Blvd., a 136,977-square-foot office property in Malvern's Great Valley Corporate Center, for $36.3 million in 2021. Two years prior, FLD Group paid $15.5 million for 100 Deerfield Lane, a 91,190-square-foot office building also located in the Great Valley Corporate Center.

Full story:

CHOP continues King of Prussia expansion with $24.5M office building purchase

By John George and Paul Schwedelson – Philadelphia Business Journal

Children’s Hospital of Philadelphia is expanding its King of Prussia footprint, paying $24.5 million for a 97,290-square-foot office building at 460 N. Gulph Road.

The building is across the street from CHOP’s nearly two-year-old Middleman Family Pavilion and its adjacent specialty care center.

CHOP bought the property from UGI Corp., which acquired the 39-year-old building in 1993 for $9.1 million. In May the Business Journal reported UGI Corp. (NYSE: UGI), an oil and natural gas company, was moving its headquarters a half-mile west from 460 N. Gulph Road to 500 N. Gulph Road. The move represented the flight-to-quality trend as the Brandywine Realty Trust-owned 500 N. Gulph Road building underwent a $29.7 million renovation in 2019.

CHOP's plans for the five-story building at 460 N. Gulph Road are unclear.

“We acquired the property as part of our facilities roadmap to ensure access to high-quality, convenient care for our patients when and where they need it,” a CHOP spokesperson said in a statement. "While we do not have specific use plans to share at this time, our focus has been on operationalizing and maintaining the property as an important part of our footprint.”

CHOP has had a presence in King Prussia since the 1990s, initially with two care sites near the King of Prussia Mall.

In 2015, CHOP opened a 135,000-square-foot specialty care and ambulatory surgical center on Goddard Boulevard, at a cost of $65 million, as a replacement facility for its two pediatric care sites a few miles away.

The center features 68 exam rooms, two operating rooms, three therapy gyms and an urgent care center. It is home to physicians in more than 30 medical and surgical subspecialties including cardiology, audiology, gastroenterology, hematology, oncology, otolaryngology, and neurology.

The expanded space in the new center was designed to allow CHOP to provide care to 400 patients a day, up from 300 a day at the sites it replaced.

Full story:

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Thursday, November 9, 2023

Phoenixville Emerges as a Rising Star for Apartment Development in Philadelphia Suburbs

 By Brenda Nguyen Costar

Phoenixville, a quaint borough in Chester County, Pennsylvania, is making waves in the Philadelphia region's apartment construction scene. As of late 2023, this locality boasts the highest concentration of new apartment units under construction for any borough, township or city in the region, except the City of Philadelphia. Phoenixville has four ongoing multifamily projects totaling 908 units under construction.

Originally settled as Manavon, the borough took its name from the local Phoenix Iron Works to become Phoenixville when it was incorporated in 1849. 

Over the past 12 months, the borough has added 313 units to strengthen its reputation as a fast-growing suburban community. Development has closely followed Phoenixville's recent burgeoning population, which has grown by an impressive 12% between 2019 and 2022, according to the U.S. Census Bureau.

The most significant development underway in Phoenixville is Steelworks, a mixed-use development that is adding 336 high-end apartments, 40,000 square feet of retail space and a 22,000-square-foot piazza. Developed by The DeMutis Group, Steelworks will replace a formerly abandoned slaughterhouse site on the western side of Bridge Street, extending the downtown area when it is completed in 2024.

Delaware-based developer Capano Management also has two significant projects in the pipeline: The Phoenix and The Reserve at Steelpointe. Once completed, each development will add 240 new apartments to the area for a total of 480. The developer also recently completed the 108-unit Reserve on Forge, which opened to its first tenants in June of this year and is still in lease-up.

Several factors have contributed to Phoenixville's recent surge in investment and real estate development. The suburban area has become a hotspot for young professionals who work in nearby employment centers such as King of Prussia and Malvern, both about a 20-minute drive away.

Moreover, its picturesque setting along the Schuylkill River, coupled with a vibrant and revitalized downtown area, has made it increasingly attractive for renters and investors. A walkable downtown, a full calendar of cultural events, and a burgeoning dining and brewery scene have further contributed to its growing popularity over the years.

While Phoenixville has led the Philadelphia region's suburban apartment growth, other localities have also experienced an apartment construction surge. Wilmington, Delaware, trails closely with the second-highest apartment construction in the region, with 830 units under construction. Langhorne and Downingtown, both Philadelphia suburbs on the Pennsylvania side, also have a notable number of new units under construction.

Tuesday, November 7, 2023

Why the Fed should be worried about commercial real estate (Video)

Greek Real Estate makes $80M bet on redevelopment of Northeast Philadelphia industrial property

 By Paul Schwedelson – Reporter, Philadelphia Business Journal 

Two years after buying a 305,706-square-foot industrial building in Northeast Philadelphia for $31.5 million, Greek Real Estate Partners knocked it down and is replacing it with a new warehouse.

The 287,000-square-foot building at 2121 Wheatsheaf Lane is expected to cost about $50 million to build, Greek Real Estate Partners Managing Partner David Greek said. The East Brunswick, New Jersey, developer secured a $44 million construction loan from First Citizens Bank.

The cost of land and construction adds up to an $80 million bet that a modern industrial building in a dense part of Northeast Philadelphia will yield a high return.

“I have to have a pretty strong belief in the overall market to make this sizable investment at this time,” Greek said. “We remain really confident that there is a significant amount of demand for this space.”

Demolishing the building was part of the plan all along, Greek said. It was knocked down over the summer and the new one is planned to be ready for tenants in about a year. The industrial building had been leased to cocoa bean distributor Dependable Distribution Services, and a neighboring 25,000-square-foot office building was leased to Amazon, which used the site for parking.

Having those tenants in place bought time for Greek Real Estate Partners to gain approvals to redevelop the site. The initial purchase came with a short due diligence period, Greek said, so the approvals weren’t in place at the time.

“With that open-ended risk, the fact that we had two leases in place and that the asset was producing cash flow actively from the day we bought it, allowed us to say we can spend this $30 million and if we are not successful, the worst that can happen is we continue to collect rent checks,” Greek said.

What happened, though, was the best case for Greek Real Estate Partners. The firm gained the necessary approvals and both leases had termination clauses so the leases could end as long as the tenants were given 18 months notice.

“If the property was just land and didn’t have any leases in place, we would not have been able to afford the purchase price we paid,” Greek said. 

While the existing buildings offered short-term cash flow, Greek said a new building can command “significantly higher” rent. Since the developer plans to be a long-term owner and hold the property for 15 to 20 years, Greek can further justify the construction costs.

The previous industrial building was built in the 1950s and added onto in the 1970s. While leasable when the property was purchased, Greek didn’t think that value would last over the next 15 to 20 years.

The previous building had 22-foot heights and 10 dock doors. The new building is planned to have 40-foot heights, 36 dock doors and two drive-in doors. It’ll also have 65 trailer parking spaces and 258 car parking spaces, another sizable upgrade.

The building is being built without tenants in place and could be specialized for specific uses like cold storage, data centers and e-commerce distribution. It could also accommodate multiple tenants, although Greek said it’s likely it’ll be leased to one. He anticipates leasing activity picking up next year once the walls and roof are built and a lease signed potentially around next summer.

“One of the things that holds up my confidence is the lack of other options in this market,” Greek said.

Greek touted the site as one that could be popular with e-commerce distributors who want to be close to population centers. The density of Philadelphia and challenge of replicating a site like this help Greek believe in the project.

Full story:

Wednesday, November 1, 2023

Top Property Sales & Leasing Deals for Philadelphia Area

As big-ticket items involving sizable investments, commercial property transactions often have a wider impact within the local community. CoStar recognized the largest deals completed during the third quarter in their respective markets.

Here are the Philadelphia property sales selected as the third-quarter 2023 winners of the CoStar Power Broker Quarterly Deal Awards:


400 and 500 Arcola Road, Collegeville, PA

Sale Price: $180,000,000

Sale Date: August 9, 2023

Size: 1,890,685 SF

Buyer: David Werner Real Estate, New York, NY

Seller: Pfizer, New York, NY

Deal Commentary: A sprawling 340-acre life science and office campus sold in a top third-quarter deal for approximately $180 million. New York-based David Werner Real Estate Investments purchased the two-building complex in Collegeville, Pennsylvania, in a sale-leaseback deal with Pfizer, the pharmaceutical giant which had owned the property since acquiring Wyeth Pharmaceuticals in 2009. Dow Chemicals occupies 400 Arcola Road and Pfizer is in 500 Arcola Road. The portfolio features a mix of office, lab, and research space with the two buildings sharing approximately 70,000 square feet of common space.

1130 N. Pottstown Pike, Exton, PA

Sale Price: $103,500,000

Sale Date: July 11, 2023

Size: 169.41 Acres

Buyer: Portman Holdings, Atlanta, GA

Seller: Audubon Land Development, Norristown, PA

Deal Commentary: In another top deal during the third quarter, Audubon Land Development sold four industrial-zoned parcels totaling nearly 170 acres to Atlanta-based developer Portman, which executed a development agreement to construct the I-76 Trade Center, a new industrial campus spanning 1.9 million square feet. Site work on the first phase is underway, with construction beginning on the first building this fall. The three-building logistics campus will be developed in two phases. Phase I will be a 636,120-square-foot building with an expected delivery of August 2024. Phase II includes a 1.1 million-square-foot facility and a 154,440-square-foot building. Portman is planning to substantially complete construction by early 2025.

101 Commerce Drive, Hazleton, PA

Sale Price: $51,000,000

Sale Date: August 22, 2023

Size: 470,000 SF

Buyer: Transwestern Investment Group, Dallas, TX

Seller: Bluewater Property Group, Conshohocken, PA and PCCP, Los Angeles, CA

Deal Commentary: After securing Ingram Micro as a full-building tenant last year, the development partnership of Bluewater Property Group, LLC and PCCP flipped this fully leased speculative warehouse in Hazelton, Pennsylvania, to an investment fund managed by Transwestern Investment Group in a top third-quarter deal. “The acquisition complements our strategy to acquire highly functional assets below replacement cost in core major logistics markets across the country,” said Chris Sterling, director of Acquisitions at TIG, in a statement announcing the acquisition.

Bristol Gardens Apartments, 1321 Veterans Highway, Bristol, PA

Sale Price: $40,750,000

Sale Date: July 11, 2023

Size: 320,000 SF

Buyer: Goldcrest Properties, Lakewood, NJ

Seller: Joshua Klein, Villanova, PA

Deal Commentary: Lakewood, New Jersey-based Goldcrest Properties completed its acquisition of the 392-unit Bristol Gardens Apartments in Philadelphia in a third-quarter transaction. The garden-style complex serving low- to moderate-income individuals and families sold for $40.75 million or about $103,954 per unit. Located at 1321 Veterans Hwy. in Bristol, Pennsylvania, the 55-year-old apartments consist of 36 two-story buildings on 31 acres of land.

Hartford Corners, 1310-1330 Fairview Blvd., Delran, NJ

Sale Price: $33,000,000

Sale Date: August 10, 2023

Size: 214,755 SF

Buyer: Haverford Properties, Haverford, PA

Seller: Principal Real Estate Investors, Des Moines, IA

Deal Commentary: Haverford Properties acquired the Hartford Corners shopping center in Delran, New Jersey, from Principal Asset Management in a top third-quarter deal. In addition to its grocer anchor tenant, the retail property’s roster includes a variety of medical, food and beverage, fitness, services and discount retailers including Planet Fitness, Five Below, Virtua Health, Five Guys and Mattress Firm. “Grocery-anchored shopping centers continue to drive the most demand in the retail asset class. Hartford Corners highlighted this trend with a competitive process to acquire a best-in-class anchor in ShopRite. Additionally, the center has performed remarkably well over the last 10 years with consistent occupancy at over 90%, showcasing the resiliency of the asset class.”

Larkins Corner, 605-653 Conchin Hwy., Boothwyn, PA
Sale Price: $26,000,000

Sale Date: September 8, 2023

Size: 225,214 SF

Buyer: Post Ave Partners, Westbury, NY

Seller: Site Centers, Beachwood, OH

Deal Commentary: Larkin’s Corner, a grocery-anchored retail center located in Boothwyn, Pennsylvania, was purchased by New York-based investment firm Post Avenue Partners in another top third-quarter deal. A team with JLL Capital Markets marketed the shopping center on behalf of the seller, Site Centers, and procured the buyer. The community shopping center consists of a main building and three outparcels on a 22-acre site built in 1994. Key tenants include Walmart, Acme Grocery, Anytime Fitness, a newly re-located McDonald’s with a drive-thru, TD Bank and Dollar Tree. Located between Philadelphia and Wilmington, Delaware, the center was 99% fully leased at the time of sale.

Portfolio of 3 Industrial Properties

Sale Price: $24,700,000

Sale Date: August 4, 2023

Size: 122,373 SF

Buyer: Carson Companies, Newport Beach, CA

Seller: Alliance Partners HSP, Bryn Mawr, PA

Deal Commentary: Alliance Partners HPS, a Bryn Mawr, Pennsylvania- based real estate investment firm focused on small and medium-sized, value-add industrial investments in Greater Philadelphia and South Florida, sold its Philadelphia Infill Industrial portfolio consisting of three fully-leased properties to an affiliate of California-based Carson Cos. in the third quarter. The three single-tenant assets are located within a 2.5-mile radius of the Philadelphia International Airport and within a 15-minute drive from the PhilaPort.

Dekalb Plaza, 2700 Dekalb Pike, East Norriton, PA

Sale Price: $23,100,000

Sale Date: July 20, 2023

Size: 178,356 SF

Buyer: Abrams Realty & Development, Elkins Park, PA

Seller: Broad Street Realty, Bethesda, MD

Deal Commentary: A subsidiary of Broad Street Realty completed the sale of Dekalb Plaza, an open-air retail center located in East Norriton, Pennsylvania, to locally based real estate firm Abrams Realty & Development in a third-quarter deal. The property sold as part of a 1031 exchange after Abrams previously sold The View at Marlton shopping center in Marlton, New Jersey. Measuring 178,356 square feet, Dekalb Plaza traded for $23.1 million, or $129.52 per square foot. The retail center was 98% occupied at the time of sale according to JLL Capital Markets, which arranged the sale. Major tenants at the center are Urban Air and Big Lots. Other tenants include Goodwill, Chick-fil-A, Applebee’s, Sally Beauty and Celebree School.

7036 Snowdrift Road, Allentown, PA - Part of Portfolio
Sale Price: $20,100,000 (allocated)*

Sale Date: August 16, 2023

Size: 162,220 SF

Buyer: Investcorp, New York, NY

Seller: Denholtz Properties, Red Bank, NJ

Deal Commentary: A four-property, 326,055-square-foot industrial portfolio in Allentown, Pennsylvania and Eatontown, New Jersey sold as part of a larger 31-property transaction across five major U.S. markets to Investcorp, a global alternative investment manager for private and institutional clients based in Bahrain. The local properties involved in the sale included a 64,800-square-foot warehouse at 969 Postal Road and a 97,420-square-foot warehouse building at 7036 Snowdrift Road in Allentown, Pennsylvania.

1179 Courses Landing Road, Carneys Point, NJ

Sale Price: $17,549,960

Sale Date: September 21, 2023

Size: 156.18 Acres

Buyer: ARBOK Partners, Jersey City, NJ and Core5 Industrial Partners, Atlanta, GA

Seller: Dennis J Kelly Sr, Carneys Point, NJ

Deal Commentary: Core5 Industrial Partners and Arbok Partners have acquired a site in South Jersey where they plan to build a 1.75 million-square-foot warehouse, which would be one of the largest in the Garden State, as developers continue to see a demand for logistics space. During the third quarter, the pair closed on the purchase of a 156-acre farm at 1087 Route 40 in Carneys Point, New Jersey. That's where the developers plan to construct the first building of what is planned to be a complex of five distribution facilities totaling nearly 4 million square feet. The project will be the first one for Core5 in New Jersey, Doug Armbruster, a senior vice president and managing director at the real estate firm.


 Route 940, Lake Harmony, PA

Space Leased: 921,356 SF

Deal Type: New Lease

Size: 921,356 SF

Tenant: Kane Logistics

Deal Commentary: Global logistics company Kane Logistics signed a new lease during the third quarter to occupy an entire industrial building in the Lehigh Valley. A leading third-party logistics provider, Kane supports such major consumer product companies as Dow, Gallo and Sam's Club. Kane operates in over 6 million square feet of industrial distribution center space all over the US. The firm's newest location in Lake Harmony was built in 2022 and is owned by EQT Exeter, which operates as the real estate division within Switzerland-based EQT Group AB, one of the world's largest real estate investment managers.

2701 N. Market St., Elizabethtown, PA

Space Leased: 349,242 SF

Deal Type: New Lease

Size: 698,880 SF

Tenant: JAS Worldwide

Deal Commentary: Family-owned logistics company, JAS Worldwide, signed a new lease to occupy over half of the space in one of the new buildings at the First Logistics Center at 283 industrial park. JAS Worldwide was founded in 1978 in Milan, Italy, and will share space in the industrial park with British fashion company, BooHoo Group. Both buildings in the industrial park were developed by First Industrial Realty Trust.

2605 Rancocas Road, Burlington, NJ
Space Leased: 217,986 SF

Deal Type: New Lease

Size: 217,986 SF

Tenant: United Fulfillment

Deal Commentary: United Fulfillment signed a new lease to occupy this entire building and become the first tenant in the 295 Burlington Business Center. Founded in 2000, United Fulfillment, which operates as UnitedFSI, has locations in St. Louis, Harrisburg, Pennsylvania, and Las Vegas. The industrial property is owned by Boston-based Cabot Properties, an international private equity real estate investment firm exclusively focused on industrial properties.

600 Hunter Lane, Middletown, PA

Space Leased: 216,387 SF

Deal Type: New Lease

Size: 216,387 SF

Tenant: Corteva - Middletown

Deal Commentary: Corteva, an agricultural chemical company, opted to extend its lease for this distribution facility in the Capital Logistics center at 600 Hunter Lane in a top third-quarter deal. Corteva, a chemical and seed company established in 2019, initially moved into the Hunter Lane property in May 2020 and will remain the sole occupant of the warehouse owned by a fund managed by CBRE Investment Management.

1 Keystone Drive, Lebanon, PA

Space Leased: 211,358 SF

Deal Type: New Lease

Size: 211,358 SF

Tenant: Mr. Brands

Brokers Involved: Allie Gaeta and Gerry Blinebury of Cushman & Wakefield represented the landlord. Jonathan Gelman of Gelcor Realty Jack Shepley and Aaron Albright of NAI CIR represented the tenant.

Deal Commentary: Wholesaler Mr. Brands signed a lease in the third quarter to secure an entire facility in the Lebanon Valley Business Park. This distribution center, situated at 1 Keystone Drive, was constructed in 1991 and spans over 30 acres of land. The facility is owned by Stag Industrial, a Boston-based investment company specializing in industrial assets.

4801 Lake Road, Newfield, NJ

Space Leased: 153,600 SF

Deal Type: New Lease

Size: 153,600 SF

Tenant: Cannabis Operator

Brokers Involved: Devon Binns of Green Pond Real Estate represented the landlord.

Deal Commentary: An undisclosed cannabis operator is poised to take up residence in a 153,600-square-foot greenhouse facility located in Newfield, New Jersey, owned by local investors, Visconti Brothers Properties.

2001 Gehman Road, Harleysville, PA
Space Leased: 97,987 SF

Deal Type: Sublease

Size: 97,987 SF

Tenant: Parceljet Information Technologies

Deal Commentary: Parceljet Information Technologies, operating as Parcel Tracker, signed a sublease in the third quarter to occupy the entire building, that was previously occupied by Amazon. Parcel Tracker provides tracking information for over 900 carriers and postal services, including both international postal services and private companies such as UPS and FedEx supporting worldwide cross-border e-commerce trade. The Patriarch Management-owned distribution building is located just off of the Northeast Extension of the Pennsylvania Turnpike in Harleysville.

500 Virginia Drive, Fort Washington, PA
Space Leased: 96,947 SF

Deal Type: New Lease

Size: 502,826 SF

Tenant: Avo Photonics

Deal Commentary: Avo Photonics signed a new lease in the third quarter for a large block of flex space in the Fort Washington Office Park. Founded in 2003, Avo provides service globally to help design, develop and create products and solutions for various firms in the aerospace, communications, military and other industries. Avo was acquired in 2011 by Halma, a global technology company. The large flex property measures over 500,000 square feet and is owned by Alliance Partners HSP, LLC an affiliate of The Shidler Group, a private real estate investment and operating company that invests in commercial properties located in the eastern and central U.S.

Kreider Drive, Middletown, PA

Space Leased: 64,000 SF

Deal Type: New Lease

Size: 64,000 SF

Tenant: ABC Supply Co.

Deal Commentary: York, Pennsylvania-based The Stewardt Cos. signed a third-quarter prelease with ABC Supply Co., a roofing company based in Wisconsin, to occupy an entirely new light manufacturing building planned on Kreider Drive in the Capital Valley Business Park. ABC Supply will occupy the second phase of this four-phase development. The building will be equipped with 17 dock doors, and 2 drive-ins, and is expected to be completed by the fall of 2024.

101 Commerce Drive, Moorestown, NJ

Space Leased: 64,700 SF

Deal Type: Renewal

Size: 64,700 SF

Tenant: Jack & Jill Ice Cream Company

Deal Commentary: Named for the nursery rhyme, Jack & Jill Ice Cream Company, a long-standing tenant, renewed its lease for the third time at 101 Commerce Drive. The New Jersey-based company initially moved into this building in 2004 and has occupied it ever since. Constructed in 1988, as part of the Moorestown West Corporate Center in southern New Jersey, the flex building totals 64,700 square feet and is conveniently located near the New Jersey Turnpike and the Betsy Ross Bridge. Brennan Investment Group and Golden Gate Capital jointly own the facility.


1735 Market St., Philadelphia, PA

Space Leased: 97,448 SF

Deal Type: Sublease

Size: 1,450,008 SF

Subtenant: KPMG

Deal Commentary: National accounting firm KPMG signed a large office sublease in the third quarter to occupy space in the BNY Mellon Center. KPMG announced plans earlier this year to depart its longtime Philadelphia office at 1601 Market St. and reduce the size of its office space in the process. It occupies approximately 134,000 square feet at 1601 Market St. and is taking just 97,000 square feet in the BNY Mellon Bank Center where it will occupy the third, fourth and sixth floors in the 54-story building jointly owned by New York's Silverstein Properties and the Arden Group of Philadelphia.

400 White Clay Center Drive, Newark, DE
Space Leased: 61,662 SF

Deal Type: New Lease

Size: 61,662 SF

Tenant: Deluxe

Deal Commentary: Deluxe Corp., a global payment technology company that processes approximately $3 trillion in annual payments, signed a third-quarter lease to expand its operations in Newark by leasing an office building in the White Clay Office Park. The one-level building is owned by Shelbourne, a privately held company based in New York that invests in and manages real estate-related investments.

2301 E. Allegheny Ave., Philadelphia, PA

Space Leased: 58,000 SF

Deal Type: New Lease

Size: 203,952 SF

Tenant: Praesum Healthcare Services

Deal Commentary: Praesum Healthcare Services, a provider of drug and alcohol addiction treatment, signed a top deal in the third quarter to lease 58,000 square feet in Commonwealth Campus, a medical office building located off Allegheny Ave.

100 N. 18th St., Philadelphia, PA

Space Leased: 51,262 SF

Deal Type: New Lease

Size: 708,844 SF

Tenant: Wells Fargo

Deal Commentary: Continuing a trend repeated through the third quarter in the Philadelphia office market, Wells Fargo signed a new lease in the third quarter to backfill some of the space at Two Logan being vacated by Comcast Corp., which is moving to its newly constructed Comcast Technology Center. As part of the relocation, Wells Fargo will vacate nine floors in the Philadelphia Plaza building at 101 N. Independence Mall. “When completed, this will bring approximately 400 employees currently working at 123 S. Broad St., One South Broad Street, and 1500 Market St. together into one central hub," a Wells Fargo spokeswoman said in a statement.

2005 Market St., Philadelphia, PA

Space Leased: 50,144 SF

Deal Type: New Lease

Size: 942,866 SF

Tenant: Wells Fargo

Deal Commentary: Wells Fargo signed a third-quarter lease to occupy space in the One Commerce Square building as part of its office downsizing and consolidation. Wells Fargo exited its space in the Philadelphia Plaza building off Independence Mall to reduce their real estate footprint in the market. Since adopting a hybrid work schedule, the bank said it had more real estate space than it needed.

833 Chestnut St., Philadelphia, PA

Space Leased: 34,426 SF

Deal Type: New Lease

Size: 694,000 SF

Tenant: Rothman Orthopedics

Deal Commentary: Rothman Orthopedics, the official orthopedic partner of the Philadelphia Eagles, Villanova Wildcats and Orlando Magic basketball team, signed a top deal during the third quarter to expand its space in this medical office building on Chestnut St. The 14-story building measures nearly 700,000 square feet and is owned by Healthpeak Properties, a real estate investment trust (REIT) that owns and develops healthcare real estate.

3025 John F Kennedy Blvd., Philadelphia, PA

Space Leased: 31,500 SF

Deal Type: New Lease

Size: 201,909 SF

Tenant: Goodwin Procter

Deal Commentary: Global law firm Goodwin Procter signed a top third-quarter lease to occupy space in the West Tower in Brandywine Realty's new 570,000-square-foot mixed-use building at 3025 John F. Kennedy Blvd. in University City. The law firm, signed a 12-year lease in September to become West Tower's first office tenant. The West Tower is one of several buildings that are part of the extensive $3.5 billion, 14-acre Schuylkill Yards mixed-use development, which is planned for nearly 4 million square feet of life science and office spaces when completed.

100 S. Broad St., Philadelphia, PA

Space Leased: 26,173 SF

Deal Type: New Lease

Size: 365,854 SF

Tenant: Center City District

Deal Commentary: Center City District, an organization that operates the Center City business improvement district dedicated to enhancing the cleanliness, quality of life, and economic prosperity of downtown Philadelphia, negotiated a third-quarter deal to relocate its office to ASI Management's Land Title Building at 100 S Broad St., where it leased 26,173 square feet. The business improvement district operator will occupy space on the first floor and mezzanine levels of the historic 22-story office tower originally built in 1898 as one of the first high-rise office towers in Philadelphia and features much of its original turn-of-the-century elegance.

161 Washington St., Conshohocken, PA

Space Leased: 24,273 SF

Deal Type: New Lease

Size: 346,659 SF

Tenant: Center Square Investment Management

Deal Commentary: CenterSquare Investment Management signed a top deal in the third quarter to lease just under 25,000 square feet at Eight Tower Bridge. The company, a private equity real estate management firm, is set to occupy the entire seventh floor of this 16-story building owned by Maryland-based American Real Estate Partners, in a joint venture with an institutional investment fund. The 16-story office tower was built in 2002 and stands adjacent to the Conshohocken train station and less than 20 miles from Philadelphia International Airport.

1650 Market St., Philadelphia, PA

Space Leased: 23,715 SF

Deal Type: Renewal

Size: 1,200,000 SF

Tenant: ZS Associates

Deal Commentary: ZS, a management and consulting services firm, renewed its lease during the third quarter at One Liberty Place in Philadelphia. ZS originally established its presence in this building in 2007 and will continue to occupy the entire 35th floor in the 61-floor skyscraper located in the center of downtown Philadelphia owned by Chicago-based Metropolis Investment Holdings Inc.

Defaults, Downgrades Will Ramp Up for CRE (Video)