Keystone Takes Valley Forge Office Center for $64M

According to published reports, the former owner paid $58 million for the asset. Bill Glazer, Keystone's president, tells GlobeSt.com it is currently 74% leased. Without disclosing the full investment his company plans to make in upgrading the building, Glazer says, "it is in the millions, and we're still going through the estimating process." He says the company plans "extensive" renovations including a redo of the base building; the provision of a 21st-century facade, which is now red, to a more neutral palette; all-new tenant spaces and signage.

The complex was constructed in the early 1970s, Greg Hansen, VP of Keystone, tells GlobeSt.com. "The buildings represent a terrific canvas to work with and an enormous opportunity." One chief attraction, he says, is the property's location "in the King of Prussia market and the entrance ramps to the new highway improvements in the area, which are on the property."

Ashforth could not be reached by deadline, but Glazer notes, "it had held the property for five years, which is a typical timeframe for holding an investment." Keystone plans to begin work this November, and Hansen says, "weather permitting, it should take five to six months." Steve Cousart of the Philadelphia office of CB Richard Ellis is charged with leasing and the rental rates are in the range of about $24 per sf to $26 per sf.

Keystone is currently repositioning three other area office properties. They include the five-building, 225,000-sf Century Park in Blue Bell; the two-building, 140,000-sf Devon Square, which it acquired for $23 million in early March from Equity Office Properties, and the 115,000-sf office building in Mt. Laurel, which it also acquired this year for an undisclosed price.