UPPER CHICHESTER TOWNSHIP, PA—Bala Cynwyd-based Endurance Real Estate Group says its affiliate has acquired Naaman's Creek Business Center, a five-building flex portfolio in Upper Chichester Township, PA, for $9.75 million, or about $51.12 per square foot for the 190,729 square feet complex.

“With our advantageous going-in basis and capital to invest in tenant improvements and base building improvements we feel confident in our ability to stabilize this well-maintained, institutional-quality set of buildings with intrinsic appeal to users due to their curb appeal, location, and flexible tenant suite sizes and configurations,” says Benjamin Cohen, president of Endurance. “This Portfolio was historically very well leased up through the late 2000s, and will certainly benefit from a reset basis and the hands-on asset management plan to be implemented under our new ownership.”

The buildings, which range in size from 25,000 square feet up to 60,000 square feet, are situated in the larger Naaman's Creek Center, a 125 acre business park totaling 750,000 square feet with high curb appeal and a campus-like atmosphere. The portfolio fronts Route 322, providing easy access to Interstate 95 and the Philadelphia International Airport to the east (15 minutes) as well as Interstate 476, which presents a direct connection from Interstate 95 to the Pennsylvania Turnpike.

The purchase price was well below replacement cost, and gives the new ownership group flexibility to invest in attracting new tenants to boost occupancy above the current 50 percent  level.

The buildings were constructed from the late 1990s through the early 2000s and feature all- masonry façades, 19' clear ceiling heights, and flexible configurations to accommodate a multitude of tenant requirements.

Despite having lost multiple tenants in the last few years, the Portfolio has been institutionally maintained and will benefit from fresh capital to be invested in procuring tenants.  Before the recession, the buildings were 96 percent occupied, and occupancy in the Naaman's Creek Center is over 90 percent. Existing users within the business park include Apria Healthcare, Patterson Dental, Pentec Health, Huff Paper Company, Office Basics and Flowserve Corporation.

Endurance has engaged SSH Real Estate's team of Brian Mears and Kevin Hagenberg to handle leasing. Existing vacancies range from 6,000 square feet up to full building availabilities of 40,000 square feet, accommodating a broad range of user sizes (and mix of office and warehouse finishes) including those seeking a stand-alone, full building presence.