An office property near the King of Prussia Mall has bucked regional real estate trends, selling for more than it did a decade ago, writes Noah Zucker for Bisnow.
Chicago-based Mesirow Sale-Leaseback Capital acquired the three-building complex at 1170-1190 Devon Park Drive for just under $68 million. The 250,000-square-foot property last sold for $63.5 million in 2015.
The new sale reflects a 7% gain, with pricing at $270 per square foot. This is up from $253 ten years ago. The increase is notable at a time when most suburban and Center City office deals have traded at steep discounts.
For comparison, Plymouth Meeting Executive Campus sold last fall for $65.5 million after an initial price tag of $100 million. Radnor Court went for $36 million in January, down from $43.7 million in 2014.
In Philadelphia, office buildings like 2000 Market Street and Ten Penn Center also changed hands for fractions of their last sale.
Meanwhile, the King of Prussia and Valley Forge submarket continues to see rising vacancy, reaching nearly 25% last quarter.
With insurance firm USLI fully occupying the property, this is a rare success story in local commercial real estate.
Read more about the acquisition in Bisnow.
