Although the parties decline to disclose the purchase price, local brokers say it likely traded at $150 per sf, or $15 million, for the 60,041-sf interconnected two-building asset at 2 Industrial Blvd. plus the 39,160-sf 4 Industrial Blvd.
Keystone Development Partners principal Paul Aschkenasy is bearish about the direction of the suburban office market, but he notes 2 and 4 Industrial Blvd. already is 100% leased to Verizon, And1, Paoli Memorial Hospital, Great Valley Health and The Simkiss Agency.
"In 10 years, in my opinion, Paoli will be the center of suburban Philadelphia," Aschkenasy tells GlobeSt.com, suggesting the market will move further out along the Main Line into Chester County.
In addition, Aschkenasy believes occupancy is not likely to skip a beat in his recent acquisition. "As I get vacancy, (Paoli Memorial Hospital) will always be short space," Aschkenasy tells GlobeSt.com, adding doctors also may covet the space given the short commute to make rounds with their hospitalized patients.
The acquisition leaves Keystone Development Partners, LLC less than 100,000 sf shy of a 1-million-sf commercial real estate portfolio.
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