Ten Capital inks deal for suburban Philadelphia office
Ten Capital inks deal for suburban Philadelphia
Ten Capital Management has completed the acquisition of Stone Manor Corporate Center, paying seller Cornerstone Real Estate Advisors $19.75m for the property at 2600 and 2700 Kelly Road in Warrington, Pa. The company liked the asset given its proximity to Philadelphia as well as the ability to achieve consistent, risk-adjusted returns on a property that is fully leased and stabilized, said Ben Adams, ceo and founder.
The Cleveland-based investment company, which looks to make equity investments of $10- 25m, could hold the property for five years or longer. “If our thesis is correct that demand will persist, while our initial business plan is for five years, we may have the flexibility to hold on for a much longer time,” Adams added. “We like the submarket and the demographics in the surrounding area.”
The 121,535-square-foot, Class A property is the dominant asset in a market that is perform- ing well. This bodes well should there be any vacancies to fill as leases expire, Adams added. “The building also has efficient floor plates, is stabilized with 100% occupancy with a diverse mix of tenants and is highly marketable,” he added. It is close to the Pennsylvania Turnpike as well as Routes 611 and 202, which connect Philadelphia to Trenton and the northwestern suburbs of Bucks and Montgomery Counties. The property also includes two hotels on the campus, a bank and a full-service restaurant.
The company also owns a power center mall in Monroeville, Pa., which is a strong suburban of Pittsburgh. “We like that submarket, which has multiple demand drivers, a diversified economy, and is topographically constrained,” Adams said. “The property has strong cash flows with great tenancies.”