"Generic drug maker Teva Pharmaceuticals USA has decided to put a new headquarters and a massive distribution center in Warrington, Pa., ending year-long speculation about where the company will land.
Teva had entertained putting a new facility on the former Willow Grove Naval Air Station Base in Horsham, Pa. Instead it will locate a 1 million-square-foot site on a tract between Limekiln Pike and Lower State Road, according to a report published Friday on Phillyburbs.com. The site is near its current U.S. headquarters in North Wales, Pa.
A preliminary concept proposal shows a center on 156 acres near the Eureka Quarry, according to the report, which quoted township officials confirming the plan. About 500 employees will work from the new facility.
What, if any, state and local financial incentives Teva will receive couldn’t be determined.
A project of that size would cost an estimated more than $200 million in construction alone, with many more millions spent to outfit distribution space with sophisticated racking and conveyor systems needed to package Teva’s generic medicines.
The Willow Grove Naval Air Station emerged last year as a leading choice because the base is being shut down in a process that will be finalized by September 2011. Nearby residents worried about air traffic that the company would produce at the base.
Teva has a significant local presence. In addition to its U.S. headquarters in North Wales, which also houses a warehousing and distribution center, Teva has a large manufacturing and research facility in Sellersville, Pa., and offices in Horsham, Chalfont and Bryn Mawr, Pa. It has 1,500 employees in Bucks and Montgomery counties.
The company, a division of Teva Pharmaceutical Industries Ltd. of Israel, markets more than 300 products in a variety of therapeutic areas and generates $11.1 billion in global sales.
Teva is scheduled to unveil its plans to the Warrington supervisors Jan. 26."
Sunday, January 10, 2010
Crozer does a sales lease back to raise $40M
Sale-lease backs are going to be more common in 2010 until creditors loosen the noose for lending and lines of credit.
"Crozer-Keystone Health System dominates the Delaware County medical business. It's a slow-growth market. Medical costs keep going up. But nobody - insurers, patients, the government, or donors - is offering to fund the increase.
With its narrow margins, Crozer is rated "BBB-," just above junk-bond status, by the Standard & Poor's credit-rating agency. S&P wants Crozer to raise cash and to boost its profits.
But with such a modest credit rating, it's tough to borrow the millions it would take to make Wall Street happy with Crozer. Especially these days, when banks have turned conservative amid massive loan losses.
Wachovia Bank, Crozer's lead creditor from its past expansion, has been unwilling to lend it more in recent years. Nor would TD Bank and other big lenders in the region.
What to do? Chief financial officer Philip J. Ryan says he started in 2007 to review the system's real estate holdings to see if it could turn them into cash without cutting operations.
He hired United Health Realty Advisers, of Ambler, to "unlock built-up value in real estate holdings" and line up local investors and lenders willing to invest.
Last fall, the system raised $40 million to improve its balance sheet, by selling a group of buildings in Springfield, through a complex debt-and-equity transaction.
Crozer is leasing the buildings from the new owners. Patients won't know the difference; Crozer gets a cushion of cash and makes its creditors happy, in hopes of cutting future finance costs.
"A lot of people were concerned about the Obama health-care plan and its effect on Crozer," said Frank Seidman, president of $1-billion-asset Capital Solutions, the Blue Bell equity-investment firm that bought the buildings with $11 million in cash, the rest in loans.
"But we have confidence in Crozer. We know them well. In Delaware County, they're too important to fail."
"A lot of hospitals could do this," said Goldenberg, who put the deal together.
The Springfield properties Crozer sold include two office buildings, totaling 80,000 square feet, and the 176,500-square-foot Healthplex, a gym and a physical-therapy center run by Crozer.
To finance the purchases by Seidman's firm, Joseph L. Rago, commercial real estate chief at Tri-State Bank, made a $6 million loan, at 6 percent, to be refinanced in five years. Susquehanna Bank lent $22.5 million at a slightly higher rate, for 10 years. Both loans amortize over 25 years, Seidman said.
In a statement, Crozer's Ryan said the deal would "better position the system financially" while letting the hospital stay "committed to our mission."
With the extra cash, "we expect their credit rating will go up," enabling Crozer to borrow for less.
"The miracle of the transaction was that a triple-B-minus health-care system was able to access $40 million, in a transaction that makes economic sense," Goldenberg said."
"Crozer-Keystone Health System dominates the Delaware County medical business. It's a slow-growth market. Medical costs keep going up. But nobody - insurers, patients, the government, or donors - is offering to fund the increase.
With its narrow margins, Crozer is rated "BBB-," just above junk-bond status, by the Standard & Poor's credit-rating agency. S&P wants Crozer to raise cash and to boost its profits.
But with such a modest credit rating, it's tough to borrow the millions it would take to make Wall Street happy with Crozer. Especially these days, when banks have turned conservative amid massive loan losses.
Wachovia Bank, Crozer's lead creditor from its past expansion, has been unwilling to lend it more in recent years. Nor would TD Bank and other big lenders in the region.
What to do? Chief financial officer Philip J. Ryan says he started in 2007 to review the system's real estate holdings to see if it could turn them into cash without cutting operations.
He hired United Health Realty Advisers, of Ambler, to "unlock built-up value in real estate holdings" and line up local investors and lenders willing to invest.
Last fall, the system raised $40 million to improve its balance sheet, by selling a group of buildings in Springfield, through a complex debt-and-equity transaction.
Crozer is leasing the buildings from the new owners. Patients won't know the difference; Crozer gets a cushion of cash and makes its creditors happy, in hopes of cutting future finance costs.
"A lot of people were concerned about the Obama health-care plan and its effect on Crozer," said Frank Seidman, president of $1-billion-asset Capital Solutions, the Blue Bell equity-investment firm that bought the buildings with $11 million in cash, the rest in loans.
"But we have confidence in Crozer. We know them well. In Delaware County, they're too important to fail."
"A lot of hospitals could do this," said Goldenberg, who put the deal together.
The Springfield properties Crozer sold include two office buildings, totaling 80,000 square feet, and the 176,500-square-foot Healthplex, a gym and a physical-therapy center run by Crozer.
To finance the purchases by Seidman's firm, Joseph L. Rago, commercial real estate chief at Tri-State Bank, made a $6 million loan, at 6 percent, to be refinanced in five years. Susquehanna Bank lent $22.5 million at a slightly higher rate, for 10 years. Both loans amortize over 25 years, Seidman said.
In a statement, Crozer's Ryan said the deal would "better position the system financially" while letting the hospital stay "committed to our mission."
With the extra cash, "we expect their credit rating will go up," enabling Crozer to borrow for less.
"The miracle of the transaction was that a triple-B-minus health-care system was able to access $40 million, in a transaction that makes economic sense," Goldenberg said."
Friday, January 8, 2010
Video: Commercial Real Estate Outlook by Barry Gosin
"Commercial Real Estate Outlook by Barry Gosin CEO of Newmark Knight. He gives a great explanation of values, REITs and construction. This interview was this morning."
http://tinyurl.com/yfcrj5n
http://tinyurl.com/yfcrj5n
Tuesday, January 5, 2010
LCTI buys Hatboro building from Jenbrooke & Other Deals of Note
LTCI Inc. bought a 33,530-square-foot industrial building at 210 Bonair Drive in Hatboro for $815,000 ($24.31/sqft). The building was constructed in 1960 and renovated in the early 2000. Jenbrooke Properties Inc. sold it to LCTI, an insurer.
_______________________________________________
Financing was arranged for the acquisition of a shopping center in Feasterville. Deerwood Real Estate Capital lined up $3.9 million for the purchases of a 112,000-square-foot center anchored by Michael's and a Dollar Tree. The loan is a refinancing of an expiring CMBS loan and features a five-year term with 25-year amortization.
_______________________________________________
Goldenberg Group, a Blue Bell retail developer, cinched up a series of leases totaling more than 142,000 square feet making its portfolio 99 percent leased up, according to the company. The local deals include: hhgregg Appliances and Electronics, which took 35,127 square feet at Whitman Square in Philadelphia. Ashley Furniture signed for 39,758 square feet at The Court at Oxford Valley in Fairless Hills. The Court at Oxford Valley is owned by Goldenberg in partnership with The Pennsylvania Real Estate Investment Trust (NYSE:PEI); Five Below inked a 8,958-square-foot lease at Columbus Commons in South Philadelphia. Clearwire also took 3,907 square feet at Columbus Commons. Joyce Leslie signed a lease for 7,950 square feet at The Court at Deptford II in Deptford, N.J. ; Ombudsman signed a lease for 3,018 square feet at ParkWest Town Center in West Philadelphia. Also at ParkWest, Planet Fitness signed a lease for 9,400 square feet; and Verizon signed a lease for 1,875 square feet at The Shoppes at Upper Hanover in Montgomery County.
_______________________________________________
Financing was arranged for the acquisition of a shopping center in Feasterville. Deerwood Real Estate Capital lined up $3.9 million for the purchases of a 112,000-square-foot center anchored by Michael's and a Dollar Tree. The loan is a refinancing of an expiring CMBS loan and features a five-year term with 25-year amortization.
_______________________________________________
Goldenberg Group, a Blue Bell retail developer, cinched up a series of leases totaling more than 142,000 square feet making its portfolio 99 percent leased up, according to the company. The local deals include: hhgregg Appliances and Electronics, which took 35,127 square feet at Whitman Square in Philadelphia. Ashley Furniture signed for 39,758 square feet at The Court at Oxford Valley in Fairless Hills. The Court at Oxford Valley is owned by Goldenberg in partnership with The Pennsylvania Real Estate Investment Trust (NYSE:PEI); Five Below inked a 8,958-square-foot lease at Columbus Commons in South Philadelphia. Clearwire also took 3,907 square feet at Columbus Commons. Joyce Leslie signed a lease for 7,950 square feet at The Court at Deptford II in Deptford, N.J. ; Ombudsman signed a lease for 3,018 square feet at ParkWest Town Center in West Philadelphia. Also at ParkWest, Planet Fitness signed a lease for 9,400 square feet; and Verizon signed a lease for 1,875 square feet at The Shoppes at Upper Hanover in Montgomery County.
Sunday, January 3, 2010
Financing issues will dog the commercial RE industry - Philadelphia Business Journal:
This is a great insight to what the local experts are predicting for the commercial real estate market for 2010 and 2011. Commercial backed mortgage securities (CBMS) coming due between now and 2012 are estimated at $153 Billion.
"As residential real estate flirts with a tempered rebound this year, commercial real estate will be tested.
One looming issue is the maturities of commercial-backed mortgage securities used to finance property acquisitions during the run up to the credit crunch. Current estimates have $153 billion of CBMS loans set to mature between now and 2012 in markets across the United States, according to CB Richard Ellis data.
How much of that will involve properties throughout the region is difficult to peg down; however, the effects have already started to be felt.
Loans have matured on properties, such as 1601 Market St. in Center City, and the owner has been renegotiating a new deal in a tight lending environment. Delinquent loans on local apartments, retail centers and suburban office buildings have been sent to special servicer companies to try to salvage what they can. In other cases, banks have secured judgments against developers who borrowed money for projects.
“I think we’re in a period of torpor where we’re just lingering along on the bottom of the market,” said Ward Fitzgerald, CEO of Exeter Property Group. “I don’t expect the market to get any worse, but there will be signs of worseness because of foreclosures and bankruptcies. They are manifestations of things that have already taken place. We have already had a decrease in occupancies and rental rates have fallen so now you will see a lot of the effects of the disease. Up to now, we have just seen the disease.”
The challenge will be for property owners to avoid defaults, foreclosures and bankruptcies by refinancing. That won’t be easy. Financial institutions aren’t as cavalier with money as they were during the boom years, and lending standards have tightened. The CMBS market isn’t what it used to be.
Other issues are also at play. With vacancy up and weak leasing, some landlords don’t have cash flow to cover debt. In some cases, properties are underwater and reassessed at less than the loan.
That’s not all.
“One of the biggest risks out there is interest rates and floating rate debt,” Fitzgerald said. “If there is an increase in interest rates, you will see an even more tremendous amount of distressed real estate.”
The impact will be most felt by private property owners who were unable to tap public markets last year to raise equity to shore up balance sheets and stabilize properties. Two of the region’s office real estate investment trusts — Brandywine Realty Trust and Liberty Property Trust — are on firm ground.
For example, in the last year, Liberty has raised $1 billion and has cash on hand and a stronger balance sheet than when the recession began. It’s in the position where if it needed to borrow more money, it could, said CEO Bill Hankowsky.
That’s not an option readily available to private developers who relied heavily on borrowing and CBMS markets for financing.
“Capital is available for the haves and capital isn’t available for the have nots,” said Hankowsky, who described the recession, the evaporation of the capital markets and their effect as something akin to a tsunami. “Some people got knocked over by the tsunami and believe whomever is standing is surviving. That’s not accurate. There will be a long high tide that will create pressure on people.”
The major theme for this year will be fundamentals — keeping space filled and properties well run, Hankowsky said.
Another issue is whether the recession will turn into a jobless recovery. That will directly affect the office market and vacancy rates. Philadelphia County has the highest unemployment rate in the 11-county region at 11 percent, according to the Bureau of Labor Statistics. Chester County’s unemployment rate stands at 6.6 percent and Montgomery County at 7 percent. There is still a worry.
“There are fewer people employed in this country today than there were 10 years ago and 2.3 million lost office jobs between 2008 and 2009,” managing principal at Cresa Partners. “My read on that and translating that into real estate is we have bottomed out, but I think we’re at the bottom of a very big U and I don’t forecast us recovering in 2010 and 2011.”
That has meant increased office vacancy rates. The suburban vacancy rate now stands at 21.5 percent, according to data. In South Jersey, the rate is 17.4 percent. It’s not expected to get much better this year.
“Locally, regionally, nationally, there is a soft leasing market,” said managing director of CB Richard Ellis’ Philadelphia office. “I think what you’re going to see is vacancy rates ... bump up, negative absorption and downward pressure on rents.”
The sluggishness will continue for the first half of the year and then finally a slightly more optimistic view of the economy will finally take hold.
“I think people, particularly the second half of 2010, will feel as if we’re almost there. Is it going to be a rocket to the moon? No.”
Financing issues will dog the commercial RE industry - Philadelphia Business Journal:
"As residential real estate flirts with a tempered rebound this year, commercial real estate will be tested.
One looming issue is the maturities of commercial-backed mortgage securities used to finance property acquisitions during the run up to the credit crunch. Current estimates have $153 billion of CBMS loans set to mature between now and 2012 in markets across the United States, according to CB Richard Ellis data.
How much of that will involve properties throughout the region is difficult to peg down; however, the effects have already started to be felt.
Loans have matured on properties, such as 1601 Market St. in Center City, and the owner has been renegotiating a new deal in a tight lending environment. Delinquent loans on local apartments, retail centers and suburban office buildings have been sent to special servicer companies to try to salvage what they can. In other cases, banks have secured judgments against developers who borrowed money for projects.
“I think we’re in a period of torpor where we’re just lingering along on the bottom of the market,” said Ward Fitzgerald, CEO of Exeter Property Group. “I don’t expect the market to get any worse, but there will be signs of worseness because of foreclosures and bankruptcies. They are manifestations of things that have already taken place. We have already had a decrease in occupancies and rental rates have fallen so now you will see a lot of the effects of the disease. Up to now, we have just seen the disease.”
The challenge will be for property owners to avoid defaults, foreclosures and bankruptcies by refinancing. That won’t be easy. Financial institutions aren’t as cavalier with money as they were during the boom years, and lending standards have tightened. The CMBS market isn’t what it used to be.
Other issues are also at play. With vacancy up and weak leasing, some landlords don’t have cash flow to cover debt. In some cases, properties are underwater and reassessed at less than the loan.
That’s not all.
“One of the biggest risks out there is interest rates and floating rate debt,” Fitzgerald said. “If there is an increase in interest rates, you will see an even more tremendous amount of distressed real estate.”
The impact will be most felt by private property owners who were unable to tap public markets last year to raise equity to shore up balance sheets and stabilize properties. Two of the region’s office real estate investment trusts — Brandywine Realty Trust and Liberty Property Trust — are on firm ground.
For example, in the last year, Liberty has raised $1 billion and has cash on hand and a stronger balance sheet than when the recession began. It’s in the position where if it needed to borrow more money, it could, said CEO Bill Hankowsky.
That’s not an option readily available to private developers who relied heavily on borrowing and CBMS markets for financing.
“Capital is available for the haves and capital isn’t available for the have nots,” said Hankowsky, who described the recession, the evaporation of the capital markets and their effect as something akin to a tsunami. “Some people got knocked over by the tsunami and believe whomever is standing is surviving. That’s not accurate. There will be a long high tide that will create pressure on people.”
The major theme for this year will be fundamentals — keeping space filled and properties well run, Hankowsky said.
Another issue is whether the recession will turn into a jobless recovery. That will directly affect the office market and vacancy rates. Philadelphia County has the highest unemployment rate in the 11-county region at 11 percent, according to the Bureau of Labor Statistics. Chester County’s unemployment rate stands at 6.6 percent and Montgomery County at 7 percent. There is still a worry.
“There are fewer people employed in this country today than there were 10 years ago and 2.3 million lost office jobs between 2008 and 2009,” managing principal at Cresa Partners. “My read on that and translating that into real estate is we have bottomed out, but I think we’re at the bottom of a very big U and I don’t forecast us recovering in 2010 and 2011.”
That has meant increased office vacancy rates. The suburban vacancy rate now stands at 21.5 percent, according to data. In South Jersey, the rate is 17.4 percent. It’s not expected to get much better this year.
“Locally, regionally, nationally, there is a soft leasing market,” said managing director of CB Richard Ellis’ Philadelphia office. “I think what you’re going to see is vacancy rates ... bump up, negative absorption and downward pressure on rents.”
The sluggishness will continue for the first half of the year and then finally a slightly more optimistic view of the economy will finally take hold.
“I think people, particularly the second half of 2010, will feel as if we’re almost there. Is it going to be a rocket to the moon? No.”
Financing issues will dog the commercial RE industry - Philadelphia Business Journal:
Leases moving at Hayden’s Marsh Creek
Six new leases at Marsh Creek Corporate Center in Exton pushed the complex up to 98 percent occupied.
The four-building complex totaling 265,000 square feet was 79 percent leased up when Hayden Real Estate Investments of Conshohocken bought it three years ago. The recent leases include: nth Solutions, which took 6,050 square feet; Advanced Medical Home Care Supplies Inc., which leased 3,025 square feet; Visible Filing Concepts, which will move into 3,025 square feet; AQM Inc. leased 2,741 square feet; and Help-Now will occupy 2,000 square feet. TSIC Acquisition will occupy 1,975 square feet at the complex’s North Point office building. Hayden Real Estate arranged the deals ...
Additional leasing activity was under way at Cherry Hill Business Park in South Jersey, where seven leases were arranged by NAI Mertz on behalf of the landlord, Endurance Real Estate Group. Deals signed include: Newborn Nurses Group signed on for 10,300 square feet at 2 Pin Oak Lane. The organization, which provides services for newborns and their mothers, will have a staff of 40 working from the office; Camp Bow Wow, a doggie day camp and boarding facility, will be occupying 9,871 square feet at 3 Esterbrook Lane. The tenant was represented by Flynn Co.; Thomas Alberco, a wine wholesaler, took 9,771 square feet at 2010 Springdale Road; Ilken, a granite countertop manufacturer, leased 9,064 square feet at 2010 Springdale for a showroom and warehouse; Concrete Services International is relocating from Executive Mews in Cherry Hill into 8,535 square feet at 1 Keystone Ave. CB Richard Ellis represented the tenant; All Brand, a supplier of parts for major appliance brands, expanded into 8,262 square feet at 2010 Springdale; and at 2020 Springdale Road, the Garr Group took 3,039 square feet and is relocating from Voorhees, N.J. The company develops, produces and distributes promotional CDs and DVDs for clients including Kellogg’s and McDonald’s, among others ...
On the market is the former U. S. Gypsum property, which totals 28.9 acres at 3000 S. 56th Street in Southwest Philadelphia. The site sits near Girard Point at the Delaware River and 92 miles from the Delaware Bay mouth. A portion of the property is in a Keystone Opportunity Expansion Zone. Colliers Lanard & Axilbund is marketing the property.
The four-building complex totaling 265,000 square feet was 79 percent leased up when Hayden Real Estate Investments of Conshohocken bought it three years ago. The recent leases include: nth Solutions, which took 6,050 square feet; Advanced Medical Home Care Supplies Inc., which leased 3,025 square feet; Visible Filing Concepts, which will move into 3,025 square feet; AQM Inc. leased 2,741 square feet; and Help-Now will occupy 2,000 square feet. TSIC Acquisition will occupy 1,975 square feet at the complex’s North Point office building. Hayden Real Estate arranged the deals ...
Additional leasing activity was under way at Cherry Hill Business Park in South Jersey, where seven leases were arranged by NAI Mertz on behalf of the landlord, Endurance Real Estate Group. Deals signed include: Newborn Nurses Group signed on for 10,300 square feet at 2 Pin Oak Lane. The organization, which provides services for newborns and their mothers, will have a staff of 40 working from the office; Camp Bow Wow, a doggie day camp and boarding facility, will be occupying 9,871 square feet at 3 Esterbrook Lane. The tenant was represented by Flynn Co.; Thomas Alberco, a wine wholesaler, took 9,771 square feet at 2010 Springdale Road; Ilken, a granite countertop manufacturer, leased 9,064 square feet at 2010 Springdale for a showroom and warehouse; Concrete Services International is relocating from Executive Mews in Cherry Hill into 8,535 square feet at 1 Keystone Ave. CB Richard Ellis represented the tenant; All Brand, a supplier of parts for major appliance brands, expanded into 8,262 square feet at 2010 Springdale; and at 2020 Springdale Road, the Garr Group took 3,039 square feet and is relocating from Voorhees, N.J. The company develops, produces and distributes promotional CDs and DVDs for clients including Kellogg’s and McDonald’s, among others ...
On the market is the former U. S. Gypsum property, which totals 28.9 acres at 3000 S. 56th Street in Southwest Philadelphia. The site sits near Girard Point at the Delaware River and 92 miles from the Delaware Bay mouth. A portion of the property is in a Keystone Opportunity Expansion Zone. Colliers Lanard & Axilbund is marketing the property.
Pulver breaks ground on Coatesville hotel
After more than five years, Oliver Tyrone Pulver Corp. has broken ground in Coatesville.
The Conshohocken developer is moving forward with a $36 million Courtyard by Marriott and an 80,000-square-foot office building.
For Don Pulver, president of Oliver Tyrone Pulver, Coatesville holds great promise. “It’s Conshohocken 20 years ago and the Great Valley of 30 years ago,” Pulver said, adding: “This is our little piece of Southern California.”
Pulver should know. While not a SoCal guy, he’s the developer who made Conshohocken a thriving office submarket that has helped lead to the eventual revitalization of the former steel town. The hotel and office development will go on 22 acres at Coatesville’s main intersection of routes 30 and 82. The hotel will have 125 rooms and while infrastructure work is under way now, actual construction of the building will begin by the middle of next year and create nearly 500 construction jobs.
A Marriott is key to the overall development. “They have a way of creating demand,” he said. “We learned how important that brand is to getting people to come to a place and to the office buildings.”
The company succeeded in constructing two Marriott in Conshohocken.
Don Pulver is still waiting for approval of his revised land development plan before constructing the office building, which won’t be constructed on spec. Pulver is currently is scouring the market for tenants. Plenty of prospects are already in the market and Pulver believes he can draw them to his project. He hopes to eventually construct 600,000 square feet of office space in several buildings though the exact number hasn’t been determined.
Pulver has worked with state and local government officials since 2004 on the Coatesville project, securing state funds, zoning and other approvals as well as private investment needed to kick start it. The state is ponying up $10.5 million of the $36 million price tag, including a $5.75 million Redevelopment Assistance Capital Program grant, a $1.25 million grant from the Infrastructure Development Program, and a $3.5 million loan from the Business in Our Sites program. When construction is complete, the new hotel and office will be a much needed boost for the city. It will employ about 330 people, which is more than 10 percent of Coatesville’s current job base.
The Conshohocken developer is moving forward with a $36 million Courtyard by Marriott and an 80,000-square-foot office building.
For Don Pulver, president of Oliver Tyrone Pulver, Coatesville holds great promise. “It’s Conshohocken 20 years ago and the Great Valley of 30 years ago,” Pulver said, adding: “This is our little piece of Southern California.”
Pulver should know. While not a SoCal guy, he’s the developer who made Conshohocken a thriving office submarket that has helped lead to the eventual revitalization of the former steel town. The hotel and office development will go on 22 acres at Coatesville’s main intersection of routes 30 and 82. The hotel will have 125 rooms and while infrastructure work is under way now, actual construction of the building will begin by the middle of next year and create nearly 500 construction jobs.
A Marriott is key to the overall development. “They have a way of creating demand,” he said. “We learned how important that brand is to getting people to come to a place and to the office buildings.”
The company succeeded in constructing two Marriott in Conshohocken.
Don Pulver is still waiting for approval of his revised land development plan before constructing the office building, which won’t be constructed on spec. Pulver is currently is scouring the market for tenants. Plenty of prospects are already in the market and Pulver believes he can draw them to his project. He hopes to eventually construct 600,000 square feet of office space in several buildings though the exact number hasn’t been determined.
Pulver has worked with state and local government officials since 2004 on the Coatesville project, securing state funds, zoning and other approvals as well as private investment needed to kick start it. The state is ponying up $10.5 million of the $36 million price tag, including a $5.75 million Redevelopment Assistance Capital Program grant, a $1.25 million grant from the Infrastructure Development Program, and a $3.5 million loan from the Business in Our Sites program. When construction is complete, the new hotel and office will be a much needed boost for the city. It will employ about 330 people, which is more than 10 percent of Coatesville’s current job base.
Subscribe to:
Posts (Atom)
