Conshohocken-based Preferred Real Estate Investments Inc., which specializes in the redevelopment of former manufacturing sites, acquired the 75-acre property in October 2004. Now called Budd Commerce Center, it contains 20 buildings encompassing more than two million sf and is also available for build-to-suit construction.

Cost of the renovation and terms of the lease are undisclosed. Brokers familiar with North Philadelphia office space tell GlobeSt.com on condition of anonymity that office rates in this area are in the $16-per-sf to $16.50-per-sf range, but suggest that Temple may be paying a discounted rate. Michael O'Neill, Preferred's founder and chairman, says he anticipates year-end occupancy in the center to be above 50%.

By relocating its health system's back office staff to Budd Center, Temple frees space for expansion in its hospitals, which include Temple University Hospital and Temple University Children's Medical Center, Jeanes Hospital and Northeastern Hospital among other community-based physician practice locations. Other parts of the university's expansion plan include construction of a new $150-million medical school, a $15-million technology center, a $67-million addition to its Fox School of Business and Management and a new $75-million Tyler School of Art.