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; Autotrader.com (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.
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.