Through its affiliate TGP/CalSTERS, Thomas acquired nine buildings aggregating 862,948 sf at four locations for $136 million, or about $158 per sf. Conshohocken-based Keystone Property Group paid $23 million, or about $161 per sf, for Devon Square, a three-building complex in Devon, aggregating 142,493 sf.

Chief among the Thomas acquisitions is Four Falls in Conshohocken, a 254,080-sf complex of two buildings and a six-story, 1,035-space garage. The buildings are joined by a 3,300-sf central glass atrium with fountains and pedestrian bridges. The property is considered the jewel of the former Equity empire here.

Thomas also acquired Oak Hill Plaza and Walnut Hill Plaza in the Wayne/King of Prussia submarket, which are two four-story buildings of 164,360 sf and 150,572 sf, respectively. The fourth property is Valley Square Office Park in Blue Bell, a five-building complex aggregating 293,936 sf on 26 acres.

According to a Thomas statement, occupancy at the four properties ranges between 76% and 89%, and the new owner believes the three western suburbs are poised for recovery. "We have a significant capital improvement program planned for these properties that includes facility renovations and systems upgrades to ensure that they are well positioned to attract and retain tenants," said James A. Thomas, chairman and CEO of Los Angeles-based Thomas Properties, in a statement. Randall Scott heads the local office of Thomas and could not be reached by deadline.

Matt Sigel, SVP of acquisitions for Keystone, tells GlobeSt.com the Devon property is about 50% leased. His company plans "an extensive renovation to reposition the property from class B to class A," he says. Equity's Philadelphia portfolio once also included 1601 and 1700 Market St. in Center City, which aggregate 1.5 million sf. In November 2004, Chicago-based Transwestern Investment Co. acquired a majority stake in them for $172.2 million.

A year ago, Equity retained Noble Carpenter and Thomas Benezille of the Jones Lang LaSalle capital markets group in New York to market its entire Philadelphia portfolio. Today, Equity's only stake in this market is its minority interest in the Center City buildings.

In addition to its suburban Philadelphia dispositions, Equity sold a 31,500 sf industrial building in San Jose, CA to an undisclosed buyer for $2.9 million.

Instant Insights /

Thomas Takes 84% of Equity Office's 13-Building $162M Sale

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