Around Philadephia, high-end commercial office prices are stuck near where they were nearly four years ago - and not too much worse - if this deal is a sign:
MIM-Hayden Real Estate Funds, West Conshohocken, has paid $70 million ($30 million cash, $40 million mortgage assumption, via New York Life) for Five Tower Bridge (a short walk from MIM-Hayden's office), an eight-story (plus 3 stories of parking), 226,000 sq ft office building that counts Brazilian-owned McDonald's meat supplier Keystone Foods, investment manager Hirtle Callaghan, Oracle Corp.'s regional PhaseForward drug software offices and Wells Fargo as tenants, among others.
The sale price, at $312/sq ft, is down from the $73 million previous owner Peter Bren's KBS Real Estate Trust of Newport Beach, Calif., paid for the Skidmore Owings & Merrill-designed, Oliver Tyrone Pulver Corp.-built tower during the financial collapse of October 2008.
But there's more to the deal: we know KBS got something out of Five Tower Bridge, having borrowed against the property. "It's a good rent roll" and fully occupied, Anthony J. Hayden Jr. of MIM-Hayden partner Hayden Real Estate Investments told me. KBS improved the property on its watch, he said.
The Hayden firm, whose backers include Philadelphia Insurance Cos. founder James J. Maguire, is partners in MIM-Hayden with Miller Investment Management. Additional financing for the deal was provided by Davis Cos. of Boston, among others.
Hayden founder Anthony J. Hayden Sr. called Five Tower Bridge "our signature property." MIM-Hayden, which has a goal of investing $100 million in regional commercial real estate, now owns 10 properties, both offices and industrial space, in the Valley Forge, Exton and Allentown-Bethlehem areas.