Friday, May 29, 2015

Ex-Wyeth offices sold at $180/sq ft

TA Associates pays $33M for Highview at Providence, Collegeville

Ex-Wyeth offices sold at $180/sq ft

TA Associates Realty, a Boston-based firm that invests pension plan dollars, has agreed to pay $33 million to acquire Highview at Providence Corporate Center, two Class A office buildings totalling 183,000 sq ft near Collegeville, Montgomery County,  which have been mostly occuiped by IMS Healthcare since they were vacated by the former Wyeth Pharmaceuticals in 2010 after Wyeth was bought by Pfizer.

Seller was Equus Capital Partners Ltd., the former BPG Properties, which built Highview for Wyeth in 2003. Brokers Jim Vesey and Doug Rodio of Jones Lang LaSalle's Philadelphia office represented BPG in finding the buyer for the property, which is part of the master-planned, 121-acre Providence Corporate Center.

UPDATE: How's the price? "Although IMS has a long term lease, they have vacated 50% of the leased space. So lenders were not comfortable financing a well-leased but not occupied-office building," says Vesey, managing director at Jones Lang LaSalle. "Replacement costs today could be anywhere from $175 to $225 per sq. ft."

It's cheaper in the flat far burbs like Collegeville than building a similarly-sized tower in Conshohocken or Radnor, which fetch premium rents, as do the higher towers on Center City's Market St. West. "Other suburban markets are a tougher sell," Vesey concludes.


About this blog

PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com, distefano251@gmail.com, 215.854.5194 or 302.652.2004.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano