TREDYFFRIN >> An area “trophy property” that sold two years ago for $37.5 million is back on the market with a much higher price tag.
Bay Colony, a 250,000-square foot Class A, four-building office park in the Swedesford Road corridor, is being marketed by Newmark Knight Frank.
Lead broker Jeff Mack said the office park is now 99 percent leased and has had many improvements done to it since the current owner, Equus Capital Partners, bought it in 2015 from Brandywine Realty Trust.
“It will be significantly higher than that,” Mack said of the $37.5 million previous selling price. “Value has been added significantly. Because of the investment in the buildings themselves and it being 99 percent leased … It’s what Equus does, it improves properties to Class A (standards) and brings in Class A tenants.”
Companies in the properties at 565, 575, 585 and 595 Swedesford Road include Vizant, Bracket, Mobiquity, Enterprise Rent A Car, Hartford Steam Boiler, New York Life, and, soon, Rosenberg & Parker.
After acquiring Bay Colony, Equus pumped more than $9.7 million into the office park. Upgrades were made to the buildings’ lobbies, restrooms, atriums and glass fronts. A new amenities center with café and conference facilities was added and an outdoor patio was installed to connect the four buildings, Mack said
As a result of the modernization and repositioning project, rents on average are up 30 percent, with the most recent leases signed at a starting rent of $30 per square foot, plus electric, Newmark Knight Frank said.
The property will attract investment grade buyers looking for stabilized returns.
“This is the prime time to sell the property into the investment market,” Mack said.
Helping the property’s value is the emergence of the Swedesford Road corridor, which Mack described as “the most sought after market” in the area. Its prospects were improved recently with construction at the Village at Valley Forge, a mixed retail and residential development in Upper Merion.
Last year, Mack sold CrossPoint at Valley Forge, a 272,000-square-foot office buildingat 530 and 580 Swedesford Road. At least four other deals have been done in the corridor in the last several years.
“It’s an amazing success,” he said of the emergence of the corridor. “It’s as hot a market as I’ve seen.”
– To contact Business Writer Brian McCullough, call 610-235-2655 or send an email to email@example.com.