Fox Puts 1M-SF Chesterbrook, Glenhardie Centers Up for Sale

Fox enlisted the New York City office of Holliday Fenoglio Fowler to market the sites. The portfolio is being marketed as a package, but Lee says Fox would consider selling to two separate buyers. The Chesterbrook portion of the portfolio aggregates about one million sf in 13 buildings, and the four-building Glenhardie center aggregates about 250,000 sf. "There is no asking price. It's a large portfolio in a concentrated market that is strong for office product, and these are the premier buildings in that market." He did not disclose the rental rates, but, according to published price lists, the average asking rate is $26 per sf.

This sale would certainly represent one of the largest suburban real estate transactions of the year here, exceeded recently only by Brandywine's acquisition of the Rubenstein 3.5-million-sf portfolio, which included some Center City properties and some largely vacant suburban assets. That price tag was $171.42 per sf. On condition of anonymity, a specialist in suburban office properties tells GlobeSt.com, "Chesterbrook will certainly command a higher price per sf," and estimates the price for the entire portfolio at an average of "between $225 and $235 per sf," which would put it in the range of $290 million.

Lee says Fox bought the assets in 1997. "We're market timers and we generally keep properties for five to 10 years." Asked if the sale would prompt Fox to buy assets, he says, "We're opportunistic developers. One step at a time, but it would put us in a position to recapitalize our efforts." Glenn Whitmore of HFF leads the marketing team, which also includes Joe Morningstar and Andrew Scandalias of the same HFF office.