Regus paid an undisclosed nominal sum to lease the businesscenter. Under the agreement, Regus will manage the center, makecapital improvements and procure tenants for the space. Thebusiness center houses 33 offices and three conference rooms. Italso features an on-site receptionist to answer phones, greetvisitors and provide administrative support; a business café withwireless internet; and a furnished reception area.

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Barry Layton, who manages Penn Center East on behalf of LGRealty Advisors, tells GlobeSt.com that there has long been abusiness center in building one, but tenants for the space hadfallen off in recent years. "Having the amount of space we have inthe park and the number of buildings, sometime years ago the ownersdecided it was a good idea to have this space so we couldaccommodate tenants of all sizes," Layton explains. "It had kind ofgotten worn down and wasn't doing very well. When I came here, Iembarked on a mission to get Regus to look at the property andconsider coming out here. It took about a year, but we were able tofinalize the transaction."

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This is the third Regus property in the Pittsburgh area. Thecompany also operates space downtown on the 43rd floor of the OneOxford Plaza building at 301 Grant St. and space west of the cityon the third floor of Foster Plaza Building five at 651 Holiday Dr.Layton points out that Regus taking the new space to the east ofthe city helps round out their presence in the Pittsburgh area.

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According to Layton, the deal was beneficial for both Regus andthe property owners, a partnership of New York City-basedInvestcorp Real Estate Group and Fort Lauderdale, FL-based GumbergAsset Management Corp.

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"It was good for Regus because the business center was anexisting concern, so they had some base of operation," he says."With their expertise and their network all around the country andthe world, they've already begun to put tenants in there that wewouldn't have been able to do on our own. We look at them as a realasset to Penn Center East, because they're the expert in thatbusiness and will certainly make the center a viable concern. Andhaving the center there will continue to enable Penn Center East toaccommodate tenants of virtually any size."

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Penn Center East is a mixed-use development that comprises sevenclass A office buildings totaling 625,000 sf, more than 300,000 sfof retail space and a 241-unit luxury apartment building. Theproperty was developed by locally based Soffer Organization between1964 and 1982, with the retail component being added in 1999. InApril 2007, the commercial aspects of the property were sold to Investcorpand Gumberg for $71 million.

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Specific terms of the transaction were not disclosed. Calls toRegus seeking comment were not returned as of press time.

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