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:
TOP SALE DEALS:
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.
TOP INDUSTRIAL LEASE DEALS
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.
TOP OFFICE LEASE DEALS
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.
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