KING OF PRUSSIA, PA — Roseview-PMRG Fund I, LLC (the Fund), a $250 million discretionary fund formed by PM Realty Group (PMRG) and The Roseview Group, has acquired a single-story, 102,204 s/f class A office building located at 211 South Gulph Rd. in King of Prussia for $21 million. This is the first acquisition in the greater Philadelphia market for the Fund which was formed to acquire and reposition office properties across the United States. The Roseview/PMRG partnership also owns properties in Atlanta, Houston and Massachusetts.
The seller, a joint venture between O’Neill Properties and The Arsenal Fund, acquired the property in February 2007. Under the Fund’s new ownership, an additional $1.1 million of capital improvements will be made including upgrading exterior amenities and signage; updating the building’s façade to enhance its presence; and system improvement.
"This acquisition was strategic for the Fund because it is a value-add opportunity that is well located within an in-fill market near downtown Philadelphia,” said Steve Corridan, partner of The Roseview Group. “The area offers all the fundamentals we are seeking which include recent growth in both commercial and residential sectors."
With the building 100% occupied at the close of escrow, the Fund’s primary aim is to roll existing leases to market rates with extended terms.
According to Angelo Lobosco, executive vice president, PMRG "we are confident that we will be able to back fill any upcoming vacancy space as King of Prussia benefits from continued tightening in Main Line and Conshohocken submarkets which currently have class A vacancy of 3.7% and 10%, respectively as well as rental growth of 35.98% and 36.08% during the past five years.”
Developed in 1960 and situated on 9.31 acres,
211 South Gulph Rd. is located one-half mile south of the King of Prussia Mall; four miles from the most affluent Main Line towns including Wayne and Radnor, PA; and 17 miles from downtown Philadelphia. The building has frontage and prominent signage on the Schuylkill Expressway (I-76), the Metro region’s busiest highway. Access to the Interstate is available one half mile north or two miles south and access to the property is via a signalized intersection.