(Updated) Bill Glazer says Keystone Property Group, his Bala Cynwyd firm that buys and redevelops older suburban office buildings, has borrowed enough money to close on its previously-announced $233 million deal to buy 15 office buildings and three development sites from the Mack-Cali office real estate investment trust, which is pulling back from the Philadelphia area office market, where rents have been stuck at 1990s levels. Glazer wouldn't break down loan amounts and terms; here's the lenders:
- Deutsche Bank - 4 office buildings at 1000-1235 Westlakes Drive, north of Berwyn near Valley Forge;
- Cantor Fitzgerald - 3 buildings at Airport Business Center in Lester, Delco, near Philadelphia International;
- Purchase Money Mortgage - One Plymouth Meeting;
- Pacific Coast Capital Management - 150 Monument Road, Bala Cynwyd; Rose Tree Corporate Center (near Media), buildings I and II; 1000 Madison Ave., Lower Providence Township, near Norristown; and 4 and 5 Sentry Park, Blue Bell.
Mack-Cali also sold Keystone buildings in Moorestown Corporate Center and at 16 and 18 Sentry West, Blue Bell, last year.
Glazer, in a statement, said his firm "plans to modernize the office portfolio to enhance the quality of work life afforded to tenants." Plus he plans to develop parcels near his newly-acquired buildings, in Lester, Media and Berwyn. His goal: to build "vibrant, urban-inspired settings" amid the burbs.
"This is a unique time in the market cycle to expand our office holdings" as the market starts to grow, Glazer added, citing what he called encouraging recent office market data, along with the lack of new office rental construction.
UPDATE: Mack-Cali isn't going away, Glazer says. To the contrary, they're "reinvesting alongside our company in a joint venture $22 million equity co-investment across the seven projects," he told me. Like last year's Sentry West deal, where Mack-Cali also retained a piece, "it's an opportunity for us to combine the institutional platform of Mack-Cali with the entrepreneurship of Keystone."
Mack-Cali is also betting on apartments in Lower Merion and other local markets as its best bet on its remaining plots of ground that weren't part of its Keystone sales.