New York Investors Acquire 108K SF Office Building In Bucks County
A group of firms from outside the Philadelphia region has purchased an office building in Bucks County.
The New York-based Advalurem Group and Red River Asset Management partnered with Lincoln Property to purchase the 108K SF 1150 Northbrook Corporate Center. It sits at the intersection of Route 1 and the Pennsylvania Turnpike in the town of Trevose, where it was built in 2007 for $27M.
The group bought the property from Rubenstein Partners, according to the Philadelphia Business Journal, and the sale was brokered by CBRE. The Advalurem Group claims it purchased the building for about 50% of replacement cost, a discount made possible by the expiration of a 10-year asset fund. The difference in price will allow the new owners to reinvest in tenant improvements.
“Central business districts are becoming increasingly unaffordable and burdened by higher taxes and overall cost of doing business,” Advalurem Group director Julie Tran said. “We're seeing the yield spread between CBD and suburban office widen beyond their historical average.”
The 1150 Northbrook Corporate Center is 85% leased, with Gamesa Renewable Energy (recently merged with Siemens Wind Power) as one of its largest tenants.