Friday, January 31, 2025
Bucks County office park adjacent to Sesame Place sells for $16M
By Ryan Sharrow – Editor in Chief, Philadelphia Business Journal
A Bucks County medical office park adjacent to the Oxford Valley Mall and Sesame Place has traded hands for more than double the price it sold for in 2015.
Aventura, Florida-based ESJ Capital Partners paid $16 million for the 152,310-square-foot nine-building Oxford Court portfolio in Langhorne. The seller, SkyREM of Philadelphia and New York, paid $7.82 million for the buildings in August 2015, according to Bucks County property records. SkyREM completed a renovation of the portfolio in 2016.
The buildings are more than 70% leased to tenants including Quest Diagnostics, DaVita, LabCorp, and the American Red Cross.
Full story: http://tiny.cc/lod8001
Thursday, January 30, 2025
Surfside maker Stateside Vodka searches for new distillery, office space
By Emma Dooling – Reporter, Philadelphia Business Journal
After a year of explosive growth for its Surfside brand, Stateside Vodka is searching for a new office space and distillery to support its expanding operations.
The Philadelphia distiller's hunt for new space comes after scrapping its plans to open an "all encompassing" headquarters housing its manufacturing, distribution and corporate operations at 13000 McNulty Road in Northeast Philadelphia, co-founder Matt Quigley told the Business Journal. Stateside, known for its namesake vodka and ready-to-drink canned cocktails, is still set to move into that facility later this month, but it will now only serve as a distribution center.
The company's goal now is to find office and manufacturing space in Northeast Philadelphia nearby, CEO and co-founder Clement Pappas said, but he's not ruling out other locations around the city. Stateside is looking for up to 100,000 square feet of space for the distillery. It did not disclose a target size for the office space.
Stateside is using a temporary 10,000-square-foot office building in Trevose while it searches for a permanent space.
The Business Journal reported in April on Stateside's plans to move into the 40,000-square-foot McNulty Road facility, a move that will allow it to increase its operations 900%. That would have included about 12,000 square feet of office space and a distillery producing about 1 million cases annually.
It would have marked a departure from Stateside's original headquarters at 1700 N. Hancock St. in the Olde Kensington neighborhood. Pappas previously told the Business Journal that the company plans to maintain ownership of that property and keep the on-site tasting room in operation.
Stateside is now changing its approach following the rapid growth of its wildly popular Surfside brand of iced tea and vodka ready-to-drink cocktails. Last year, Stateside more than tripled its production of Surfside to 4.925 million cases and expanded its distribution to all 50 states, necessitating more distribution space.
With that expansion, Stateside grew its employee base, hiring 51 people since Sept. 1 alone, 21 of whom are based in Philadelphia. It is currently looking to fill another 20 positions, five of whom will be in Philadelphia. The company has a around 200 employees, with 80 in Philadelphia.
That growth forced a change in plans for Stateside's Northeast Philadelphia facility, where housing every local employee would have been difficult, according to Pappas.
“Between that and the space we need for distribution and everything, it just wasn't going to work,” Pappas said.
The change in its real estate strategy comes as as the brand continues seeing huge growth.
Pappas and Quigley founded Stateside in 2013 with their brothers Zach Pappas and Bryan Quigley. In 2022, they launched the Surfside brand, offering a four-pack of the traditional iced tea and vodka, producing 200,000 cases. In 2023, Stateside upped its production volume of Surfside to 1.3 million cases. The company further grew the brand in 2024 by more than tripling its production to 4.925 million cases, Pappas said.
Full story: http://tiny.cc/3c88001
Tractor Supply is in growth mode; More stores may come to New Jersey
By Mateusz Wnek CoStar Analytics
Tractor Supply, a chain that bills itself as the country's largest rural lifestyle retailer, updated investors in December on its long-term outlook, which includes aggressively expanding its brick-and-mortar footprint.
Central to its expansion plans has been the company’s sale-leaseback strategy. Launched in 2023, the strategy calls for the company to sell and lease back its 117 existing legacy retail locations at a pace of around 15 stores over the next seven to 10 years.
Accordingly, proceeds from the sales will fund the company's new store growth, starting with 90 new stores in 2025. The latest count shows the company operating more than 2,200 stores in 49 states, including 31 in New Jersey.
The Garden State is an attractive destination due to its population density, above-average household incomes and expansive highway network. Over the years, Tractor Supply has targeted the state's suburban and rural areas, particularly its farming communities in the rural Northwest and South Jersey.
CoStar recently explored the company’s existing footprint, proximity to its biggest competitors and availability of suitable retail space to surmise where it could hypothetically open new stores as part of its national expansion strategy.
To do this, a simple optimization model was run to maximize the number of potential store openings given a defined set of competitive, demographic and geographic constraints. Using CoStar’s dataset of current available retail space in New Jersey as a starting point, the constraints included:
- Minimum of six miles from an existing Tractor Supply location
- Minimum of 0.3 miles from the nearest competitor (Home Depot or Lowe’s)
- Available retail space between 15,000 square feet and 25,000 square feet
- Available retail space is located in a city with at least 3% population growth since 2020
Qurate Retail Group to relocate HSN operations to QVC campus in West Chester
By Jeff Blumenthal – Senior Reporter, Philadelphia Business Journal
Qurate Retail Group will relocate HSN from St. Petersburg, Florida, to the expansive West Chester campus that houses its sister home shopping brand QVC.
In an announcement Wednesday, Qurate (NASDAQ: QRTEA) said it remains committed to the HSN brand as an important part of the company’s portfolio and that it will continue to have a distinct voice, focus and customer base from QVC.
The consolidated operation is expected to activate over the coming months, with HSN beginning live broadcasting from West Chester’s Studio Park campus sometime in the third quarter.
Qurate, which in November announced plans to rebrand as QVC Group this year, said centralizing broadcast operations and content production capabilities gives HSN access to what it termed the “world-class studios and technology” that exist at the QVC campus in West Chester. In addition, Qurate said it is building a next-generation content engine in West Chester that can quickly capture content to deploy on social media, streaming platforms and more for both HSN and QVC.
HSN will continue to operate its TV channels HSN and HSN2, as well as digital properties HSN.com and the HSN mobile app.
“The HSN brand will continue to be an integral part of Qurate Retail Group as we activate our growth strategy and position the company for sustained success moving forward,” said Stacy Bowe, president of HSN brand & U.S. merchandising. “We have the deepest appreciation to the state of Florida and the St. Petersburg community for their support and dedication over HSN’s 47-year history. We look forward to continuing to delight our customers as we make this transition to our new home.”
It’s unclear how many jobs will be eliminated in St. Petersburg or added in West Chester as a result of the move. At one point, HSN had thousands of employees at its sprawling Florida campus, which encompasses roughly 369,000 square feet and includes a massive TV production and digital operations studio.
Qurate acquired HSN, QVC's longtime rival, in December 2017. The next year, about 350 HSN jobs were eliminated in St. Petersburg.
Studio Park, Qurate’s global headquarters at 1200 Wilson Drive in West Chester, is a 720,000-square-foot property. It is home to the company's corporate offices as well as the U.S.-based broadcast studios for QVC.
In 2021, Qurate sold a 256,500-square-foot office building in West Chester for $17.5 million and moved out of the facility, having determined it no longer needed the space. The following year, the company executed a sale-leaseback for another building on the campus.
Despite that, Qurate Retail CEO David Rawlinson said in a January 2024 interview with the Business Journal that the company could ultimately expand in West Chester if it emerges from its Project Athens turnaround plan with revenue and profitability at certain levels.
Full story: http://tiny.cc/ha88001
Wednesday, January 29, 2025
Occupancy rates rise across a growing number of US industrial real estate markets
By Adrian Ponsen CoStar Analytics
The combined occupancy rate for all U.S. industrial properties dropped further in recent months as vacant distribution centers complete construction faster than tenants can lease them. Rent growth has slowed in most markets, with property owners increase concessions such as offering periods of free rent to lease large spaces.
But not all industrial property markets are following this trend. Beginning early last year, the number of industrial markets with rising occupancy rates began to increase again for the first time in more than three years.
As of the fourth quarter of last year, the number of markets where industrial occupancy rates are increasing has risen for four straight quarters, encompassing 39 of the 100 largest U.S. markets at the end of 2024. One year ago, the roster consisted mostly of smaller cities such as Hartford, Connecticut, and Wichita, Kansas.
Over the past year, occupancy has begun to rise in several more prominent markets. During the fourth quarter, occupancy rates increased in four of the 10 largest U.S. industrial markets: Detroit, Houston, Philadelphia and California’s Inland Empire.
Occupancy rates for industrial property also rose in several smaller, but still prominent logistics hubs used for distributing goods nationally and regionally including Cincinnati, Ohio, Louisville, Kentucky, Reno, Nevada, Harrisburg and Scranton, Pennsylvania, and Savannah, Georgia.
While not a flawless predictor, in the past changes in the percentage of markets with increasing occupancy rates have served as leading indicator of key turning points in the national industrial occupancy rate.
During mid-2009, the percentage of U.S. markets with increasing occupancy rates began to rise 15 months before the overall U.S. industrial occupancy rate began to recover. During late 2021, as record levels of speculative development began to overwhelm leasing in certain markets, the percentage of U.S. markets with improving occupancy rates began to fall 12 months before the U.S. industrial occupancy rate began to decline.
The big five
Whether the national occupancy rate begins to ascend in 2025 depends in large part on what transpires in the nation’s five largest industrial markets: Chicago, Dallas-Fort Worth, Los Angeles, New York City and Atlanta. Together, these markets account for almost one-fifth of the U.S. industrial property stock, and none had occupancy rates that had started to rise last quarter. However, even a modest pickup in economic conditions and industrial leasing would be enough to increase occupancy rates in most of these markets this year.
In Atlanta and Chicago, the amount of unleased industrial space that is currently under construction is at the lowest levels recorded since 2015, meaning occupancy rates in these markets will face limited supply pressure from completions of speculative projects this year.
Setting aside the data centers and manufacturing facilities now underway in Dallas-Fort Worth, most of which are preleased, that market currently has 18.8 million square feet of logistics space under construction. This is less than two million square feet short of the net expansion in occupied logistics space within the market last year, meaning declining vacancy in the local industrial market is well within reach by late 2025 if tenant demand accelerates.
At 12.5 million square feet, the New York City market’s current tally of logistics space under construction more than doubles the 5 million-square-foot net expansion in occupied logistics space that the market recorded last year. This signals that New York is less likely to achieve a rising occupancy rate next year although a turnaround is still possible, given the more limited tally of projects that will likely still be under construction late in the year.
Los Angeles has been a laggard in terms of demand for industrial space for more than two years and local leasing would need to pick up significantly for occupancies to rise in 2025. However, combined import traffic at the ports of LA and Long Beach increased by 21% in 2024 with its strongest showing in the second half of the year. This signals that a leasing and vacancy recovery is far from impossible, particularly with the limited tally of speculative space under construction.
Tuesday, January 28, 2025
Bucks County's Keystone Trade Center lands 518,000-SF lease
By Paul Schwedelson – Reporter, Philadelphia Business Journal
A third-party logistics company has leased half an industrial building in NorthPoint Development’s Keystone Trade Center in Fairless Hills, the latest deal at the former U.S. Steel site.
Monroe, New Jersey-based US Elogistics signed a lease for 517,641 square feet at 500 Ben Fairless Drive, known as Building 5 of the 1,800-acre Bucks County site. That leaves 518,055 square feet available, or half of the 1.04 million-square-foot building.
Kansas City, Missouri-based NorthPoint is building out a $1.5 billion logistics hub with around 20 warehouses totaling more than 10 million square feet with the potential to build out to 15 million square feet.
Keystone Trade Center's initial two buildings, the project’s first phase, have been completed and are fully leased. With the completion of Building 5, the second phase is completed and the third is under construction. The third phase consists of Buildings 7, 8 and 9, according to Colliers’ marketing materials.
Tenants at the Keystone Trade Center include FedEx, Jillamy and Savino Del Bene.
Building 5 specifically has 40-foot clear heights, 52 dock doors, two drive-in doors, 118 dedicated trailer parking spots and 391 car parking spots.
After seeing success at the Keystone Trade Center, NorthPoint continued investing in the Philadelphia region by breaking ground last April on a $590 million, 3.8 million-square-foot industrial project in South Jersey's Woodstown named Turnpike 1 Trade Center. The project consists of four warehouses being built speculatively without tenants.
Full story: https://tinyurl.com/yc7tynrz
Westrum sells Phoenixville apartment building for $48M
By Paul Schwedelson – Reporter, Philadelphia Business Journal
A 205-unit apartment building in Phoenixville has sold in one of the Philadelphia region's largest multifamily transactions of the past year.
Jenkintown-based Lindy Communities bought the 185,566-square-foot property at 723 Wheatland St. for $48.2 million, according to Chester County property records. The seller was Fort Washington-based Westrum Development, which built the four-story apartment community in 2022.
Westrum operated the building, located just south of French Creek and the Schuylkill River Trail and north of Bridge Street, as Luxor Phoenixville, part of its Luxor collection of suburban apartment buildings. Following the acquisition, Lindy Communities rebranded the property as The Diamond at Phoenixville.
The sale price equates to more than $235,000 per unit, or nearly $260 per square foot.
Monthly rent at The Diamond at Phoenixville starts at $1,690 for studios, $1,655 for one-bedroom apartments and $2,575 for two-bedroom units, according to property's website. Amenities include an infinity-edge swimming pool and sundeck, fitness center, dog park, grilling station and residents' lounge.
Neither Lindy Communities nor Westrum Development responded to requests for comment on the sale.
Full story: https://tinyurl.com/z5v56xky
Monday, January 27, 2025
Prologis sells Navy Yard data center to California firm for $16M
By Paul Schwedelson – Reporter, Philadelphia Business Journal
A West Coast company looking to increase its Philadelphia presence has acquired a Navy Yard data center for $16.3 million.
El Segundo, California-based investment firm Landmark Dividend purchased the 28,083-square-foot building at 4775 League Island Blvd. from Prologis, which took ownership of the property when it bought Liberty Property Trust in 2020.
The building is fully leased by St. Louis-based information technology company TierPoint.
Karlton Holston, executive vice president of data centers for Landmark Dividend, praised the Navy Yard facility's potential to add capacity and increase the building’s value.
Holston, categorizing electricity as a “constrained commodity,” said the data center “really fits into our portfolio.”
“We like the location, like the underlying tenant and their use of the space as well as the long-term prospects. We see it as an opportunity to continue to invest in the site and possibly bring additional power to that site.”
Landmark Dividend invests in data centers and has ground leases for cell towers and billboards. Since 1985, the firm has completed more than 6,800 transactions totaling more than $4.5 billion. Holston said the data center market is “pretty hot right now” compared to other real estate segments.
Landmark Dividend owns three other properties in Pennsylvania, Holston said, and “would be open” to purchasing more in the Philadelphia region. Holston said the firm has recently looked at other opportunities in the area.
Full story: https://tinyurl.com/mtwy4sbj
Friday, January 24, 2025
Northeast Philadelphia parcel next to Cardone HQ sells for $4M
By Ryan Mulligan – Reporter, Philadelphia Business Journal
A Northeast Philadelphia parcel with approved development plans has sold to a New York firm for $4 million.
Lakewood, New Jersey-based Paramount Realty sold the property at 5501 Whitaker Ave. to an entity affiliated with Brooklyn-based Asset Realty and Construction Group, Philadelphia property records show. The triangular lot is located next to the headquarters building for auto parts manufacturer Cardone Industries.
Paramount received zoning permits in December 2022 to build a three-story, 126,300-square-foot self-storage facility on the just over three-acre parcel. The property located just off of Roosevelt Boulevard is assessed at $3.6 million, according to city records.
The project wouldn't be Asset Realty and Construction Group's only in-the-works self-storage project in Northeast Philadelphia. In July, the developer completed the Civic Design Review process for a 152,720-square-foot self storage at the corner of State Road and Cottman Avenue.
Asset Realty has a diverse real estate portfolio of self-storage, warehouse, retail and multifamily properties. Most are clustered in the New York metro area.
Asset Realty and Construction Group CEO Dino Tomassetti did not respond to a request for comment.
Paramount Realty CEO Maurice Zekaria said in an email to the Business Journal that the company decided to sell the land because self-storage facilities are not a part of its core business. Paramount previously sold a nearby retail center at 4640 Roosevelt Blvd. for $78 million in 2021.
Full story: https://tinyurl.com/yvjrjh9e
Six-story industrial building proposed in Fox Chase
By Ryan Mulligan – Reporter, Philadelphia Business Journal
A six-story self-storage facility has been proposed in Fox Chase.
The project at 7801-45 Oxford Ave. involves consolidating three parcels into a single lot and requires zoning variances to proceed. Plans for the project were submitted to the Philadelphia Civic Design Review committee and will be reviewed in February, and the project will go in front of the Zoning Board of Adjustment later in the month.
A handful of existing buildings would need to be demolished to make way for the self-storage facility, which would total 118,122 square feet, according to documents filed with the city.
The developer on the project is BG Capital, though the Bala Cynwyd-based developer's acquisition of the contiguous parcels is not yet recorded in Philadelphia property records. Together, the properties span about three-quarters of an acre.
Full story: https://tinyurl.com/59xst9ur
Thursday, January 23, 2025
Philadelphia’s office market gains footing after five years of poor demand
By Brenda Nguyen CoStar Analytics
After enduring five years of negative demand, Philadelphia's office market is showing early signs of stabilization. While the market has not exactly started its recovery phase, the latest data indicates a positive shift as it enters 2025.
For the first time since 2018, annual net absorption — the difference between move-ins and move-outs — has turned positive. Office occupancy increased by 615,000 square feet across the Philadelphia metropolitan area.
Between 2019 and 2023, local companies returned 7.6 million square feet of office space amid uncertainties surrounding the future of work. While recent performance is not enough to undo the damage from recent years, it’s a crucial step toward stabilization and eventual recovery.
Notably, this improvement coincided with a decrease in demand from life science companies, which had been a significant driver for Philadelphia's office market. This suggests the traditional office sector is stabilizing independently of the life sciences.
Wednesday, January 22, 2025
Tuesday, January 21, 2025
Philadelphia real estate firm Rubenstein Partners hit with foreclosure suit on 55% vacant office tower
By Brian Planalp – Staff reporter, Cincinnati Business Courier
A downtown Cincinnati office tower owned by a Philadelphia real estate firm faces foreclosure.
The owner of 312 Plum St. has allegedly defaulted on its loan and is delinquent on debts to vendors, according to a case filed Dec. 30 in the Hamilton County Court of Common Pleas.
Philadelphia-based Rubenstein Partners acquired the 12-story office tower in 2015 with an $18.4 million mortgage loan currently held by Delaware-based Wilmington Trust National Association, an affiliate of M&T Bank Corp.
The complaint claims Rubenstein Partners defaulted on the loan sometime prior to April 2024, when the loan’s special servicer sent a delinquency default notice to the firm. The parties reached a discounted payoff agreement in June 2024, but Rubenstein Partners allegedly failed to comply with its terms, prompting Wilmington Trust to terminate the agreement in October.
Wilmington Trust subsequently brought the foreclosure suit, claiming Rubenstein Partners is liable for the remaining principal on the note as well as interest, late charges and fees, totaling $16.2 million.
The complaint seeks foreclosure of the mortgage, appointment of a receiver and sale of the property, with the proceeds applied to liens on the property and payment determined by order of priority.
Rubenstein Partners acquired the building at 312 Plum St. in a transaction that closed the same day as its purchase of 312 Elm St. The firm last year was hit with a nearly identical foreclosure action related to its alleged default on that building.
Full story: https://tinyurl.com/yfxw3ahd
Thursday, January 16, 2025
Marshall Dennehey cuts 10% of its office space in Center City lease renewal
By Jeff Blumenthal – Senior Reporter, Philadelphia Business Journal
Marshall Dennehey has renewed its lease at 2000 Market St., giving back about 10% of its space in the process.
Philadelphia’s largest defense litigation law firm said it signed a 10-year lease renewal on 120,462 square feet. The firm moved to 2000 Market from 1845 Walnut St. in 2012, signing a 15-year lease to occupy 133,000 square feet spanning floors 22 through 26. Marshall Dennehey will essentially be giving back half of a floor in its new lease.
Marshall Dennehey CEO G. Mark Thompson said it made sense to consolidate space because it is the second largest cost center for most law firms and technology is impacting modern law offices. He said the firm will cut the 13,000 square feet by restructuring file space and divesting unused or unneeded space, including a kitchen area in the basement of the building that was included in its original lease.
It also plans to redesign workspaces “for enhanced collaboration and efficiency.” Marshall Dennehey cut its paper file space by half in the move to 2000 Market and Thompson said the firm will continue to reduce it, repurposing that space. It will also reconfigure space dedicated to administrative support services, including finance, on the 22nd floor.
Thompson said 2000 Market remains attractive to the firm because the building is in a prime location with easy access to the courts, clients, the central business district and public transportation. He said landlord Nahla Capital, a real estate private equity firm based in New York, has been flexible in working with Marshall Dennehey as it evolves.
The 10% reduction in office space is much less than what most large firms have given back when signing new leases in the post-pandemic world, with many trimming between 40% to 50%. A move to hybrid working has accelerated a trend started two decades ago by advances in technology, which created less need for support staff and paper file space.
Thompson said most Marshall Dennehey lawyers still prefer coming into the office, and the firm does not offer much in the way of hoteling arrangements.
“We're doing that to a very small extent with regard to some of our IT and finance personnel,” Thompson said. “But as far as the attorneys are concerned, we're maintaining individual offices.”
Marshall Dennehey said 129 lawyers, or 25% of its total, and 211 administrative and professional staff work out of the firm’s Philadelphia office. Its next largest offices include Mount Laurel, with 55 attorneys; and King of Prussia, Pittsburgh and Roseland, New Jersey, with approximately 40 attorneys each.
Founded in 1962, Marshall Dennehey has 500 lawyers spread over 19 offices in Pennsylvania, New Jersey, Delaware, Ohio, New York, Connecticut and Florida. It has 220 lawyers working in four local offices, making it the sixth-largest firm operating in the region. The firm traditionally has focused on insurance defense litigation.
Full Story: https://tinyurl.com/5xybxh4f
Wednesday, January 15, 2025
25-story office tower added to $250M Camden redevelopment project
By Paul Schwedelson – Reporter, Philadelphia Business Journal
The public-private partnership behind the redevelopment of Camden's Walter Rand Transportation Center is taking the project to new heights, announcing plans to add the largest office tower in South Jersey.
Master developer Gilbane and property owner NJ Transit said Monday they plan to build a 25-story, 500,000-square-foot office building between Federal Street and Martin Luther King Jr. Boulevard at the transportation hub.
The office tower, named the Beacon Building, is the newest addition to the redevelopment project, for which New Jersey Gov. Phil Murphy committed more than $250 million in funding three years ago.
The building is planned to be partially occupied by Cooper University Health Care. The project’s leaders, which also include the Camden County Improvement Authority and government officials, plan to recruit New Jersey’s Administrative Office of the Courts to relocate civil courts to the building.
The Beacon Building builds on Cooper University Health Care’s $3 billion campus expansion, which includes three clinical towers. The expansion is needed to meet current and future demand at the 663-bed Cooper University Hospital and MD Anderson Cancer Center at Cooper. The expansion of the university system, life sciences and research sectors is expected to drive a need for office space.
The Walter Rand redevelopment project is also planned to include an updated transportation center, a public square and a parking structure on Lot N.
“The Beacon Building’s proximity to the Rand Transportation Center and Cooper makes it attractive as we look for additional office space to house Cooper’s growing team of support services,” Cooper University Health Care Co-CEO Dr. Anthony Mazzarelli said in a statement. “The additional parking that will be part of this important project is also attractive to Cooper.”
The existing transportation center was built in 1989 and the new design is intended to house most of the operations inside the transportation center. The new hub would better accommodate the 24 bus lines that service the facility, provide connectivity to the PATCO Speedline subway and the River Line light rail, support independent intercity bus services and provide additional parking, administrative offices and retail space.
Full story: https://tinyurl.com/4navyn88
Tuesday, January 14, 2025
UPMC inks 'long-term' lease renewal at eight Pennsylvania properties
Pennsylvania's largest nongovernment employer has renewed a lease for nearly 725,000 square feet across eight buildings in the state's central region.
The deal with medical provider UPMC comes as Pennsylvania's healthcare sector grows. In Pittsburgh, tenants like Allegheny Health Network, Excela Health and Highmark have contributed to a 3.1% growth in health services over the last 12 months, CoStar data shows. And in Philadelphia, education and healthcare companies account for 23% of employment, and lead in high-value transactions for owner-user buyers in regard to health services.
UPMC signed the "long-term" deal for clinical office space totaling 724,096 square feet, the news release said. The identified the building addresses for CoStar News:
- 2025 Technology Parkway, Mechanicsburg
- 2005 Technology Parkway, Mechanicsburg
- 2015 Technology Parkway, Mechanicsburg
- 205 S. Front St., Harrisburg
- 2501 N. Third St., Harrisburg
- 2645 N. Third St., Harrisburg
- 4300 Londonderry Road, Harrisburg
- 4310 Londonderry Road, Harrisburg
“The medical office market remains one of the most resilient and in-demand sectors in commercial real estate, and this deal is a clear reflection of the growing need for well-located, purpose-built spaces that support healthcare providers’ operations and patient care."
UPMC employs about 100,000 people and made $28 billion in revenue during 2023. According to its website, the nonprofit operates 40 hospitals and 800 doctors’ offices and outpatient sites, among other care facilities.
Monday, January 13, 2025
Friday, January 10, 2025
Thursday, January 9, 2025
Wednesday, January 8, 2025
Tuesday, January 7, 2025
Dalfen Industrial buys vacant warehouse in New Jersey
By Taylor Collins CoStar Research
A warehouse built last year in in Lumberton, New Jersey, that has since remained vacant recently sold for $34.3 million to Dalfen Industrial, according to a report published on the company's website.
The Lumberton Logistics Center at 1800 NJ-38 is 219,123 square feet and features 40-foot ceilings, two drive-ins and 36 dock doors. The property also has 115 parking spaces.
Active Acquisitions developed the site starting in August 2022, wrapping up construction the next year. Pangea Mortgage Capital, which served as Active Acquisitions’ lender, took ownership of the property through a related entity in April 2024. Then Pangea sold the property to Dalfen Industrial on Dec. 19.
Dalfen's off-market purchase is part of the company's approach to buying "last-mile buildings in high barrier-to-entry population centers,” Keith Hontz, the firm's northeast market officer, told the Business Journal.
Based in Dallas, Texas, Dalfen operates out of 11 North American offices and has a portfolio exceeding 55 million square feet. The firm currently owns and operates nearly 4 million square feet across 14 properties in the Northeast.
Monday, January 6, 2025
Radnor Court office building sells for $36M
By Paul Schwedelson – Reporter, Philadelphia Business Journal
The three-story Radnor Court office building has sold, signaling the continued strength of the Main Line submarket.
New York-based investment bank Goldman Sachs sold the 127,000-square-foot building, located at 259 N. Radnor Chester Road in Wayne. The property was bought by Florida-based mortgage lender Freedom Mortgage for just over $36 million, according to industry sources, equating to about $285 per square foot.
Goldman Sachs bought Radnor Court in 2014 from Equus Capital Partners for $43.7 million.
Freedom Mortgage, one of the nation’s largest non-bank mortgage lenders, relocated its headquarters from Mount Laurel, New Jersey, to Boca Raton, Florida, in 2021. The firm services all 50 states, Washington, D.C., Puerto Rico and the U.S. Virgin Islands.
Freedom Mortgage declined comment.
Radnor Court is 82% leased and its tenants have a weighted average lease term of 8.6 years. The building serves as the corporate headquarters for Airgas, which recently extended its lease for 10 years, helping to boost its value. Airgas, a supplier of industrial, medical and specialty gases, leases 86,000 square feet. Professional services firm Aon is also among the tenants, leasing 9,000 square feet.
The office building sits northwest of the intersection of I-476 and Lancaster Avenue, between Radnor High School and SEPTA’s Regional Rail stop.
More than 25 prospective buyers toured the property. As of the third quarter of 2024, the Main Line submarket had a 14.5% office vacancy rate, making it one of the strongest performing submarkets in Philadelphia’s suburbs. The suburbs as a whole had an average vacancy of 26%. For trophy properties, the vacancy rate was 4% a result of the flight to quality that’s taken place among tenants in recent years.
“This bodes well for high-quality, well-located office buildings even in what we all recognize is a challenged office environment."
While a number of office sales in 2024 involved properties in distress or with high vacancy rates, Radnor Court didn’t have any debt and wasn’t a distressed sale, according to Rodio and Kershner. The sale of a healthy office property with strong occupancy indicates the sales market is loosening up.
In September, Brandywine Realty Trust sold the five-office, 521,288-square-foot Plymouth Meeting Executive Campus for $65.5 million, or $126 per square foot. While it was 77% occupied at the time of the sale, a major difference from Radnor Court is that the Plymouth Meeting submarket was 43% vacant as of the third quarter of 2024.
Full story: https://tinyurl.com/4rku8r67
