Suburban Office Campus for Sale in Greater Philadelphia

Thursday, October 20, 2016

Update: This property is no longer available.  Please click here to be redirected to a page to search current real estate investment listings. 

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing for sale Valley Creek Corporate Center at Exton Park, a three-building, best-in-class suburban office campus totaling 259,163 square feet in Exton, Pennsylvania. Strategically developed in 2002, the commercial property for sale is in one of the most coveted locations for corporate headquarters in Greater Philadelphia.

Valley Creek Corporate Center at Exton Park (Valley Creek) is currently 95.2 percent leased to an impressive creditworthy tenant roster. The top five largest tenants are the global corporate headquarters for Analytical Graphics, Inc. (AGI); Internet Pipeline; (d/b/a HomeNet); Titanium Metals and People 2.0 Global, LLC, which occupy approximately 84 percent of the GLA; these companies have a weighted average remaining lease term of greater than six years and account for 85 percent of Valley Creek’s gross revenue. With strong current cash flow and a global headquarter-profile tenancy operating on long-term leases, the value of the suburban office property for sale is enhanced through the assumption of favorable in-place financing.

Valley Creek is widely viewed as one of the best suburban office settings in Greater Philadelphia and will provide the new owner the opportunity to acquire trophy-quality buildings at pricing that is below replacement costs with yields at a premium to similar offerings in traditional gateway markets. Located at 220, 222 and 224 Valley Creek Boulevard, the property is strategically located near the confluence of Route 202, Route 30 and the Pennsylvania Turnpike, which provides the site with easy highway access from Lancaster, Berks, Montgomery, Delaware and Chester Counties. Business Route 30 is a major east-west thoroughfare along the “Main Line” and provides immediate access to the site. The property is 12 minutes from King of Prussia and Interstate 76 and approximately 25 minutes from downtown Wilmington, Delaware, with access to Interstate 95. The commute to Philadelphia is less than one hour.

The Greater Philadelphia Class A office market continues to see vacancy rates compress, and modified gross rents for similar trophy buildings range between $29 and $33 per square foot today, with healthy two to three percent growth year-over-year. The cost of new construction exceeds $350 per square foot to build a comparable Class A product. This will insulate Valley Creek from competition of new construction and position the property as a price competitive alternative to both new construction and recently-renovated buildings in this submarket.

Philadelphia-Area Office Campus for Sale Investment Highlights 

  • Best-In-Class Product:  Valley Creek Corporate Center provides a new owner the opportunity to acquire an institutional quality office building that is 95.2 percent leased. Since completion, the property has consistently been a top-performer, attracting a stable and diverse tenant base. As evidenced by (d/b/a HomeNet), People 2.0 Global and Internet Pipeline’s recent sizable lease commitments and further reinforced by historical tenant retention, the office buildings for sale presents new owners the ability to leverage positive leasing momentum across Greater Philadelphia in a proven submarket.
  • Long-Term Stability with an Impressive Credit Tenant Roster:  More than 75 percent of Valley Creek’s tenant roster is represented by five tenants, four of which occupy the buildings as their global headquarters. Four of the five signed renewals expansions or new leases within the past 24 months, and all renewed after their initial lease term, proving demand for headquarter space in this location. Valley Creek boasts an impressive average remaining lease term of 5.5 years, with contractual annual rent growth for all tenants. The combination of lease term and contractual rent growth provides surety of income, predictable cash flow and impressive yield growth over the long-term.
  • Excellent Tenant Amenity Package and Location:  The property for sale offers an outstanding work environment and features superior building amenities, including ample surface parking; award-winning food service; men’s and women’s bathrooms equipped with showers, changing areas and lockers; and on-site walking trails. Additionally, the property is in an ideal location that provides tenants immediate access to several area hotels, restaurants, shopping centers, banks, day cares and health clubs. Valley Creek Corporate Center at Exton Park’s location is minutes from a 200-room hotel, conference center and shopping destinations, including the 1.1 million-square-foot Exton Square Mall and Main Street at Exton power center, and the property sits in an institutional-quality office park surrounded by inviting outdoor and communal spaces. Valley Creek is also located adjacent to Exton Park, a 725-acre park that offers running, walking and biking trails, recreational fields, fishing ponds, gardens and has plans for equestrian space, a golf driving range and sports fields.

Valley Creek Corporate Center at Exton Park presents investors with an opportunity to acquire a best-in-class asset with long-term stability due to an impressive roster of credit tenants, a superb tenant amenity package and location with access to the Greater Philadelphia area. For more information on Valley Creek or other suburban office properties for sale in Philadelphia and the surrounding area, please contact Doug Rodio or Ben Appel in HFF's Philadelphia office. 

Update: HFF announced the sale of this property in June 2017.  For a listing of current commercial real estate investment opportunities, please click here.

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