Brandywine Realty Trust has entered into an agreement to sell its Princeton Pike Corporate Center, an eight-building, 800,546-square-foot office park in Lawrenceville, NJ.
The sale is expected to close in 30 days for a reported $121 million, or about $151 per square foot. As part of the sale agreement, the buyer was given a 7.5-year option to acquire Brandywine's three remaining development parcels in the park.
The company's report identified net proceeds from the sale will be used to retire existing debt, including balances under an unsecured revolving credit facility.
"The sale of Princeton Pike reduces New Jersey's contribution to just 5.5% of overall Company revenues and amplifies our shift to a more urban and transit-oriented portfolio with better growth characteristics," stated Gerard H. Sweeney, President and CEO of Brandywine Realty Trust. "Within our consolidated portfolio, we ended 2012 as a $97.7 million net seller, in line with our capital recycling and disposition goals.
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Wednesday, February 6, 2013
Tuesday, February 5, 2013
Saturday, February 2, 2013
Liberty to Develop 200,000 SF for Vanguard
Liberty Property Trust has announced plans to develop a brand new 200,000-square-foot, six-story office building for The Vanguard Group. The property will be located in the Great Valley Corporate Center in Malvern, PA
Construction is expected to begin in March, with an anticipated completion date in mid-2014. Total cost for the project is estimated to come in around $55 million.
D2CA Architects lent its expertise to the project, designed to achieve LEED certification. Studio Bryan Hanes came on as landscape architect, and the project engineer is Bala Consulting Engineers.
Liberty began development of GVCC in 1972. Companies in and around the park today employ nearly 25,000 people.
"Now in its 41st year, Great Valley Corporate Center is one of nation’s leading business parks and a major employment center for Greater Philadelphia," said Tom Sklow, vice president and city manager for Liberty. "The park continues to evolve and grow, and just last month became even more accessible with new connections to the Pennsylvania Turnpike."
Vanguard has signed a long-term lease at the park for the entire 200,000-square-foot property, commencing upon completion of the new building.
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Construction is expected to begin in March, with an anticipated completion date in mid-2014. Total cost for the project is estimated to come in around $55 million.
D2CA Architects lent its expertise to the project, designed to achieve LEED certification. Studio Bryan Hanes came on as landscape architect, and the project engineer is Bala Consulting Engineers.
Liberty began development of GVCC in 1972. Companies in and around the park today employ nearly 25,000 people.
"Now in its 41st year, Great Valley Corporate Center is one of nation’s leading business parks and a major employment center for Greater Philadelphia," said Tom Sklow, vice president and city manager for Liberty. "The park continues to evolve and grow, and just last month became even more accessible with new connections to the Pennsylvania Turnpike."
Vanguard has signed a long-term lease at the park for the entire 200,000-square-foot property, commencing upon completion of the new building.
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Miller's Ale House Expanding in Northeast
Miller's Ale House is continuing its expansion in the Northeastern U.S. following the completion of two lease transactions in Willow Grove, PA and Paramus, NJ.
In the first deal, the 60-store restaurant chain headquartered in Jupiter, FL signed a ground lease for 1.5 acres of development land located off the Pennsylvania Turnpike in Willow Grove, PA.
In the second transaction, the restaurant known for great food at affordable prices leased a 9,200-square-foot location in Bergen Town Center, a 1 million-square-foot power center located in Paramus, NJ.
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In the first deal, the 60-store restaurant chain headquartered in Jupiter, FL signed a ground lease for 1.5 acres of development land located off the Pennsylvania Turnpike in Willow Grove, PA.
In the second transaction, the restaurant known for great food at affordable prices leased a 9,200-square-foot location in Bergen Town Center, a 1 million-square-foot power center located in Paramus, NJ.
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Brandywine Realty Trust plans to redevelop 1900 Market St.
Joseph N. DiStefano, Inquirer
Brandywine Realty Trust says it will redevelop 1900 Market St., which houses Nasdaq's Philadelphia Stock Exchange operations and investment and law offices, "as a Class A office building." Work will start next year and be done by 2015, the company said.
Separately, Brandywine, of Radnor, has asked Campus Crest Communities, a Georgia company known mostly for building student housing at suburban and small-town colleges in the South and West, to put up student housing on a site approved for a 36-story high-rise at 2930 Chestnut St. in University City, according to two real estate industry sources familiar with the deal.
The property adjoins the University of Pennsylvania campus. Brandywine had earlier hoped to lure office tenants to the block with help from state and city tax breaks. Brandywine spokeswoman Marge Boccuti declined to comment on the project.
Brandywine paid $34.8 million to buy the 457,000-square-foot 1900 Market building in 2011. Last summer, its lead tenant, law firm Cozen O'Connor, announced plans to vacate 200,000 square feet. But given the sale price of $76 per square foot, "the building's existing tenant base, current below-market leases, and purchase price will provide an attractive yield," Brandywine said in a statement.
Philadelphia's office real estate market, as measured by square footage, rents, and employment, has been flat for 20 years, as the impact of expanding tenants such as Comcast has been erased by cutbacks such as GlaxoSmithKline's move next week from its complex near 16th and Vine Streets to a smaller space at the Navy Yard.
Cozen's plan to move to One Liberty Place fed speculation that 1900 Market, with an open atrium at its center, could be turned into high-end apartments and expanded, echoing developer Ron Caplan's plans for the vacant AAA Mid-Atlantic building nearby or the Brandywine-Independence Blue Cross plan for apartments and retail in the vacant lot at 1919 Market.
But Brandywine and other landlords also have said that the city's most modern office towers, including the Mellon and the former Verizon towers nearby, are successfully attracting high-end tenants, and that there may be more demand for high-end offices as companies like FMC Corp., the Philadelphia chemical conglomerate, seek to consolidate into newer space.
Friday, February 1, 2013
Philadelphia's Office Vacancy Rises to 11.6%
The Philadelphia Office market ended the fourth quarter 2012 with a vacancy rate of 11.6%.
The vacancy rate was up over the previous quarter, with net absorption totaling negative 120,250 square feet in the fourth quarter. That compares to negative 1,040,010 square feet in the third quarter 2012. Vacant sublease space increased in the quarter, ending the quarter at 1,219,839 square feet.
Tenants moving into large blocks of space in 2012 include: Young Conaway Stargatt & Taylor, LLP. moving into 218,335 square feet at The Courthouse; Marshall, Dennehey, Warner, Coleman & Goggin moving into 131,325 square feet at 2000 Market St; and Philadelphia Media Network Inc moving into 125,000 square feet at 801 Market St.
Rental rates ended the fourth quarter at $20.92, a decrease over the previous quarter.
A total of eight buildings delivered to the market in the quarter totaling 490,854 square feet, with 802,262 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.9% from the previous quarter, with net absorption positive 27.16 million square feet in the fourth quarter. Average rental rates increased to $21.63, and 234 office buildings delivered in the quarter.
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The vacancy rate was up over the previous quarter, with net absorption totaling negative 120,250 square feet in the fourth quarter. That compares to negative 1,040,010 square feet in the third quarter 2012. Vacant sublease space increased in the quarter, ending the quarter at 1,219,839 square feet.
Tenants moving into large blocks of space in 2012 include: Young Conaway Stargatt & Taylor, LLP. moving into 218,335 square feet at The Courthouse; Marshall, Dennehey, Warner, Coleman & Goggin moving into 131,325 square feet at 2000 Market St; and Philadelphia Media Network Inc moving into 125,000 square feet at 801 Market St.
Rental rates ended the fourth quarter at $20.92, a decrease over the previous quarter.
A total of eight buildings delivered to the market in the quarter totaling 490,854 square feet, with 802,262 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Office vacancy rate, which decreased to 11.9% from the previous quarter, with net absorption positive 27.16 million square feet in the fourth quarter. Average rental rates increased to $21.63, and 234 office buildings delivered in the quarter.
www.omegare.com
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