The Valley Square office complex in Blue Bell sold to Cincinnatti-based Viking Partners, a company that focuses on buying under-performing real estate, for $19.75 million.
The complex, a five-building, 293,936-square-foot property, was only half occupied when Viking Partners took over ownership from Corevest Realty Inc. Corevet bought the complex in 2013 for $8.5 milion and at the time was about 20 percent occupied. Three of the building, under Corevest’s ownership, have been renovated and leased. Two are vacant. Viking Properties has plans to turn the properties around, writes Natalie Kostelni in the Philadelphia Business Journal.
“They are going to concentrate on leasing the vacant buildings and we expect to see these properties to take the next step forward,” said Brett Segal, who along with HFF colleague Doug Rodio sold the complex.
Currently, Blue Bell is on the upswing, but it is still considered a “soft market” because of a vacancy rate of 18.9 percent. However, Blue Bell is benefiting from being a lower cost alternative at around $28 a square foot to some other areas such as Conshohocken, which has rents nearing $37 a square foot.
To read the complete story click here.