Suburban Philly Portfolio Trades for Almost $80M

By Tudor Scolca

MLP Ventures has acquired an office portfolio in King of Prussia, Pa., from Liberty Property Trust. A JLL Capital Markets team arranged $79.3 million in acquisition financing, with an initial term of three years and two additional one-year extensions. LoanCore Capital provided the loan and part of it will be used as capital for leasing activity.

Renaissance Office Portfolio totals roughly 640,000 square feet. According to Yardi Matrix data, the portfolio includes several Renaissance Park buildings. One asset is 3200 Horizon Drive, a 92,673-square-foot building sitting on approximately 10 acres, fully leased to two tenants: Aspire Bariatrics and Bright Horizons.

Two smaller buildings were also part of the transaction. The first, 2520 Renaissance Blvd., is a 53,109-square-foot, one-story asset constructed in 1999. LexisNexis occupies the property. The second, 2900 Horizon Drive, encompasses 50,000 square feet and is currently vacant.

Strong occupancy

At the time of the transaction, the campus’ tenant roster included 24 tenants, with the portfolio being 84 percent occupied. The properties are situated close to each other, with multiple nearby thoroughfares facilitating transport across Greater Philadelphia. Interstates 76, 476 and 276 are within minutes of the offices. King of Prussia Mall is just under four miles away, while downtown Philadelphia is 17 miles from the intersection of Horizon Drive and Renaissance Boulevard.

“Suburban Philadelphia continues to offer high-end options for corporate offices, especially in the highly regarded King of Prussia area. With stable occupancy and credit tenants, we were able to secure favorable terms for our client to purchase this portfolio of office properties,” said Chad Orcutt, senior vice president at JLL, in a prepared statement. He led the team securing the acquisition loan.

Images courtesy of Yardi Matrix