CBRE arranges sale of 55,000 s/f office building
Philadelphia, PA — CBRE has arranged the sale of 5 Capital Dr., a 55,000 s/f class A office building in Harrisburg. An affiliate of Kest & York purchased the property from FIVE CAPITAL ASSOCIATES, LLC for an undisclosed amount, marking the investor’s first acquisition in the Harrisburg market.
CBRE Investment Properties’ Steve Marzullo and Adam Silverman, along with Jeremy Shyk and David Sickler represented the seller in the transaction. Joanne Willams of CBRE’s Debt and Structured Finance team secured the financing on behalf of the buyer. Shyk will continue to oversee leasing of the property.
“5 Capital Dr. has long been a standout asset in our region, making this an especially meaningful transaction for our team, which also handled the property’s previous sale,” said Marzullo. “This transaction is a great indicator of the continued demand for high-quality, suburban office space in Central Pennsylvania, and we are thrilled to have helped bring a new investor into the fold.”
Built in 2008, 5 Capital Dr. is located near Interstates 81 and 83 and PA Rtes. 22 and 322, providing convenient access to downtown Harrisburg and the Camp Hill Business District. The four-story property features several amenities, including an energy-efficient geothermal HVAC system, abundant natural lighting, a fitness center and outdoor balconies, and is leased to a diverse mix of established regional and national tenants.
“Kest & York is excited to add 5 Capital Dr. to its growing office portfolio as it expands across North American markets,” said Shyk. “The property represents a reimagined class A asset that thrives in today’s market with institutional quality space, energy efficiency, premium location, and distinctive outdoor access, including onsite scenic trails and Paxton Creek views. With ideal suites ranging from 1,000 to 14,000 s/f, great window-to-floor ratios and eager new ownership, the property offers a unique value proposition that modern tenants demand.”
In other news, CBRE has arranged an $85 million loan for Mi-Place at Downingtown, a newly developed 318-unit multifamily community located at 800 Horseshoe Pike in Downingtown.
Matthew Klauer and Cassandra Russell of CBRE Capital Markets’ Debt & Structured Finance team in Philadelphia arranged the financing on behalf of the borrower, Fernmoor. The financing was provided by Barings.
“Barings recognized the quality of both the sponsorship and the asset,” said Klauer. “Mi-Place at Downingtown stands out within the Philadelphia suburbs due to its scale, differentiated product mix and exceptional location in one of the region’s strongest suburban growth corridors.”
Located 30 miles west of Philadelphia, Mi-Place at Downingtown offers direct access to U.S. Rte. 30, the PA Tpke. and SEPTA Regional Rail service. The property consists of 200 apartment units and 118 townhomes and is the latest addition to Fernmoor’s portfolio of Mi-Place rental communities throughout the Mid-Atlantic region.
“Securing this financing is an important milestone for the continued success of Mi-Place at Downingtown,” said Jeffrey Fernbach, president of Fernmoor. “The property has delivered strong leasing momentum and reinforces our belief that there is significant demand for high-quality rental housing that combines modern amenities, larger living spaces and convenient suburban access to major employment centers.”
The property features one-, two- and three-bedroom floorplans and several unit and community amenities, including a resort-style pool, clubhouse, fitness center, pickleball courts, dog park, electric vehicle charging stations and smart-home technology.
“Mi-Place at Downingtown is a compelling opportunity backed by an experienced sponsor and a high-quality asset in a desirable suburban market,” said Jonathan Neff, director with Barings.
“We are pleased to provide financing for a project that is well-positioned to benefit from continued rental housing demand in Chester County and the greater Philadelphia region.”
