Source, Daily Times, Donna Rovin
KING OF PRUSSIA — A 165,000-square-foot office building at 200 N. Warner Road, in King of Prussia has sold for $37.85 million.
The four-story multi-tenant building is located in the desirable Swedesford/Warner Road Class A Office Corridor and is situated across the street from the King of Prussia Town Center and one-quarter mile from King of Prussia Mall.
The property was sold by the joint venture of Taconic Capital and Cohen Equities, both of New York, N.Y., to Pembroke Capital of Bryn Mawr. Newmark Knight Frank’s (NKF) greater Philadelphia Capital Markets team — which included Mike Margolis, Dave Dolan and Dave Garonzik, along with local market expert, Jim Dugan — represented the owners in the sale.
The building currently has 22 different tenants, according to Margolis, senior managing director for Newmark Knight Frank, who added that the largest tenants are: AT&T Mobility, Odell Studner (insurance) Quadgen Wireless Solutions, Insight Global and SAC Wireless Solutions.
When Taconic Capital and Cohen Equities acquired the property in May 2016, the occupancy rate for the property was 65%. Margolis told MediaNews Group that as of the Oct. 16 closing on the property, occupancy was at 86%.
Prior to the sale, a $4.2 million comprehensive modernization program was completed, which included enlarging and remodeling the lobby, creating new common areas and restrooms, full replacement and addition of windows, as well as the addition of two common area tenant conference rooms and a lobby grab n’ go, according to a Newmark Knight Frank press release.
“This capital investment led to momentous leasing success, and rental rates increasing approximately 35 percent at the property,” the release stated.
Margolis said there are two notable aspects of the sale.
“First, it validated the ‘renovate, add amenities, lease-up and sell strategy.’ Second, it demonstrated the impact of the King of Prussia Town Center, which has become the best amenity in the Philadelphia suburban office market,” he said. “Being directly across the street allows tenants to walk to lunch, something uncommon in the suburban market.”
The Swedesford/Warner Road Class A Office Corridor is one of the highest performing, most sought-after micro-markets in the suburban Philadelphia area, according to information provided by Newmark Knight Frank, with rental rates above average suburban Philadelphia rental rates.
“In addition, properties in this corridor have achieved some of the region’s highest sales prices in recent year’s transactions,” the release stated.
In addition to its proximity to retail and dining options, 200 Warner Road is located close to major highways including the Schuylkill Expressway (I-76), the Pennsylvania Turnpike (I-276), Route 202 and Route 422.
Newmark Knight Frank, operated by Newmark Group Inc. is a commercial real estate advisory firm offering services and products for both owners and occupiers. Newmark Knight Frank’s 16,000 professionals operate from approximately 430 offices on six continents.