Philadelphia Mayor Michael Nutter, fourth from right, helps cut the ribbon at Saint-Gobain's new headquarters in Malvern last November. Developers have sold the property to a partnership of Chicago-based 90 North Real Estate Partners and Arzan Wealth for $123 million. (Steve Lubetkin Photo/StateBroadcastNews.com)

MALVERN, PA—Months after relocating international building products firm Saint-Gobain to a redeveloped office campus here, E. Kahn Development, J. Loew & Associates, and AEGON US Realty Advisors have sold the Saint-Gobain North American Headquarters, a two-building, 65-acre corporate campus in Malvern, PA, to Chicago-based 90 North Real Estate Partners and Arzan Wealth for $123 million.

“This acquisition truly reflects and embraces our definition of 'trophy' credit,” says Daniel Cooper, partner and head of 90 North's North American operations, said. “The property is occupied by Saint-Gobain, a Global 200, S&P rated BBB-company under a 15-year lease agreement with additional renewal options.”

The Kahn-Loew-AEGON consortium was represented by Brian Fiumara, senior vice president, CBRE, and Jim Vesey, president, Vesey Capital.

As previously reported by GlobeSt.com, Saint-Gobain, the world's largest building material company, and its North American construction materials subsidiary, CertainTeed Corporation, relocated into 320,000 square feet of space within the class A+ office campus in November 2015.

The relocation followed a comprehensive building renovation and repositioning program by E. Kahn Development Corporation and J. Loew & Associates.

“In the face of geopolitical, economic and other headwinds facing the global economy in 2016, our message to investors is, appropriately, a very British 'Keep Calm and Carry On,'” says Nick Judd, founding partner and head of investment at 90 North. “While investor sentiment is fragile, demand for well leased, modern commercial property in the USA, UK and Europe for the purposes of income generation and protecting wealth is currently undiminished.”

90 North is focused on assets that can weather any industry or market cycle, Daniel Cooper tells GlobeSt.com exclusively.

“As global investors who look at properties in the US and abroad, we continue to come back to these types of assets that have the security of strong tenancy and the stability that the US market affords,” he says. “At the end of the day, we need to know that the asset will perform well and can weather any cycle or market downturn. When you have a tenant that has committed millions of dollars into renovating a building and then signs a long term lease, that's what helps us sleep at night.”

The Saint-Gobain campus includes 20 Moores Road, a four story, 277,335-square-foot office building and 18 Moores Road, a two-story, 43,891-square-foot research and development building. The buildings are designed under an open office concept and include 116 collaborative spaces; a cafeteria, along with other food and beverage spaces; a fitness facility; and parking for approximately 1,100 automobiles. The 35 acres of green space include a pond, a fountain, and 1.3 miles of walking trails with access to the bordering Chester Valley Trail. The site is three times the size of the company's previous site and provides ample room for future expansion.

This acquisition mirrors 90 North's and Arzan Wealth's acquisition last February of the $127 million, 450,000-square-foot Lenovo Campus in the Research Triangle in Raleigh, NC. The strategic joint venture between 90 North and Arzan Wealth purchased the 67-acre site, which offers investors a healthy and predictable monthly income stream, and a strong focus on capital preservation.

Originally developed in 1968 as the headquarters for the National Liberty Life Insurance Company, the Saint-Gobain campus was previously, from 1997 to 2008, the corporate headquarters for AEGON Insurance Companies. Led by E. Kahn Development Corporation and J. Loew Associates, in collaboration with AEGON Group, Saint-Gobain took full advantage of its extensive portfolio of building materials and redeveloped the property into an energizing, sustainable work environment to help attract and retain top talent for years to come. The comprehensive $40 million modernization program, designed to meet LEED Gold specifications, was a significant factor in securing Saint-Gobain's tenancy.

”We are pleased to have worked with AEGON US Realty Advisors and Saint-Gobain to reposition this property into a first class asset and North American headquarters for one of the top companies in the world,” says Eli Kahn from Kahn Development.

It's also evidence that suburban office complexes can still be an attractive option, Cooper says.

“The Saint-Gobain campus is 30 minutes outside of Philadelphia, and is a significant campus within a submarket known as the High Tech Corridor,” Cooper says. “With immediate access to the entire area—including downtown Philadelphia, the submarket is home to numerous innovative technology, medical, and pharmaceutical firms as well as excellent schools and residential neighborhoods. This type of scenario is playing out in many cities across the country. We saw it in Raleigh when we purchased the Lenovo Campus and we see it in cities such as Austin, Denver, Chicago, Atlanta and Dallas.”

“The renovated Saint-Gobain and CertainTeed headquarters campus is a stunning example of how innovative companies can design and create healthy, comfortable and sustainable buildings that will stand the test of time,” says John Crowe, president and CEO of Saint-Gobain. “We are proud to be part of this wonderful campus that is well-positioned to suit our needs for many years to come.”

You can watch our November video news report about the office campus in the video player below.

The Kahn-Loew-AEGON consortium was represented by Brian Fiumara, senior vice president, CBRE, and Jim Vesey, president, Vesey Capital.

The relocation followed a comprehensive building renovation and repositioning program by E. Kahn Development Corporation and J. Loew & Associates.

90 North is focused on assets that can weather any industry or market cycle, Daniel Cooper tells GlobeSt.com exclusively.

It's also evidence that suburban office complexes can still be an attractive option, Cooper says.

You can watch our November video news report about the office campus in the video player below.

Instant Insights /

Months After Relocating Saint-Gobain, Developers Flip Malvern Campus to 90 North

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