Value-Add Office Portfolio for Sale in Conshohocken, Pennsylvania

Thursday, August 2, 2018

Holliday Fenoglio Fowler, L.P. (HFF), on behalf of the owner, is marketing a portfolio of three value-add creative office properties for sale in the Philadelphia-area community of Conshohocken, Pennsylvania. Ahead of its time when completed between 2000 and 2002, Millennium One, Two and Three (collectively named “Millennium”) total 196,769 square feet and are currently 96 percent occupied. The portfolio presents investors with a creative Class A, value-add opportunity in a transit-oriented location in one of Philadelphia’s top-performing submarkets.

Value-Add Office Properties for Sale Investment Highlights

  • Creative, Class A, Value-Add Opportunity:  With two full years of remaining lease term to AmerisourceBergen (12/2020 expiration) in addition to the healthy mix of other professional users, the office property for sale offers stable and predictable cash flow in the near term. AmerisourceBergen recently announced it will be moving to a new built-to-suit headquarters in Conshohocken upon expiration. Assuming no leasing between January 1, 2019 and December 31, 2020, estimated occupancy will be 41 percent as of December 31, 2020. Millennium also offers highly desirable and marketable large-block availability rarely seen in Conshohocken or any other top-performing urban/suburban geographic locations across the United States as AmerisourceBergen awaits its new headquarters building to be constructed. The lack of comparable, creative space and the allure of a Conshohocken address should drive competition so that a new owner could find replacement tenant(s) without much capital investment to modernize the property since it already contains the most desirable creative office space in greater Philadelphia.
  • Purpose-Built Creative Office:  Millennium was ahead of its time when it delivered in 2002 and is still the only Class A, purpose-built creative office product in the region. When compared to other “creative” properties throughout the region (both in the Philadelphia CBD and surrounding suburbs), Millennium’s modern construction techniques are a clear differentiator for tenants desiring high-end creative and collaborative space.
  • Transit-Oriented Development in Close Proximity to Decision Makers:  Less than 15 miles from downtown Philadelphia, the office buildings for sale are located at 225 and 227 Washington Street and 20 Ash Street. Conshohocken is situated at the confluence of I-476 (the Blue Route) and I-76 (Schuylkill Expressway), which provides extraordinary access to the entire Philadelphia region, including the Pennsylvania Turnpike and Philadelphia International Airport. Tenant demand to Conshohocken has been historically driven by the fact that Conshohocken is the closest office submarket to the palatial estates that make up Philadelphia’s “Main Line.” Employees and visitors of Millennium can also utilize Septa’s Regional Rail service. The Conshohocken Station is located directly across Washington Street, making commuting from downtown Philadelphia a breeze.
  • Premier Urban/Suburban Location in Philadelphia’s Top-Performing Submarket:  Conshohocken is among the single, most dynamic, live-work-play locations in the Greater Philadelphia region. With asking rents approaching $40.00 per square foot in the trophy sector and occupancy rates hovering around 95 percent in the Class A sector, the Conshohocken office submarket has historically outperformed the market at large and has been the most well received by tenants and institutional investors.

For more information on these creative office properties for sale or other commercial real estate listing in Philadelphia and the Mid-Atlantic, please contact Doug RodioBrett Segal and Ryan Ade in HFF’s Philadelphia office. To view HFF’s current real estate investment sales listings, please click here.

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