The property was built in 1960 as a data center and once housed operations for PNC Bank. Joe Margolis, co-founding partner of Arsenal, tells GlobeSt.com it was a foreclosed property owned by DLJ Mortgage Acceptance Corp. He declined to disclose what the JV paid for the building, but says, "we purchased it at a very attractive price."
The renovations will take a year and call for new roofing, HVAC, drywall, carpeting and electrical systems along with upgrades to the exterior and facade and a new entryway. Brian O'Neill, chairman of O'Neill Properties, is a part owner of Arsenal.
Margolis says this property "furthers our strategy of investing in cost-advantaged, redevelopment opportunities in strong local submarkets." He says the King of Prussia office market has strengthened significantly and is reporting its lowest vacancy since 2001. The rate is now about 12% and declining, he says.
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