Case Study Hickory Pointe Office Building
Location
Plymouth Meeting, PA
Sector
The Property
Institutionally owned and operated, 83,000 sf Suburban Office building, which was acquired in an off-market transaction, below replacement cost. Located just off of the PA Turnpike and I-476, directly opposite the Plymouth Meeting Mall.
Project Brief
At 78% occupancy, the Buyers, based on their experience in the market, identified an opportunity that they felt with the right capital partner they could execute a lease-up and renovation strategy and reposition it to a Class A property.
Challenge
Lease Up Risk. Plymouth Meeting was included in the Blue Bell/Plymouth Meeting submarket which had a significant vacancy and had been experiencing decreasing occupancy and rental rates.
Convince an institutional equity partner that this was a special asset and differentiate it from the adjoining Blue Bell market properties.
Approach
Provide market data to support the pricing in a market that was viewed overall as in a state of occupancy decline.
Highlight the success of the sponsorship in the area and sell the sponsor as much as the real estate.
Outcome
Arranged the JV equity placement for the Buyers to acquire this 4 story, 83,000 sf, Class-B, Suburban Office building, located in Plymouth Meeting, PA. The property was 78% leased at the time of sale, representing a Value Add Opportunity to renovate and reposition the asset to a Class A property.