CONSHOHOCKEN, PA-A pharmaceutical-based company that asks to remain unidentified has inked a 10-year, two-month lease for 46,392 sf, and Conshohocken Health & Fitness has signed for 17,000 sf for a similar term in the 641,000-sf Spring Mill Corporate Center. Each agreement carries two months free rent, Michael O'Neill, chairman of locally based Preferred Real Estate Investments, tells GlobeSt.com.
O'Neill says the aggregate value of the larger lease is approximately $6.5 million, and the value of the fitness center lease is about $1 million. These leases take overall occupancy to about 85%, according to O'Neill. Among the other tenants are XO Communications, Norman Spencer McKernan, Thomcomp and Idea Integration.
Preferred acquired the former Lee Tire Factory at 1100 E. Hector St. in 1989 and began redeveloping it into Spring Mill Corporate Center in April 2002 at an investment of $40 million. In addition to converting factory space to office, it added a 75-seat auditorium, conference and training centers, new building lobbies, a 100-seat café, upgraded systems and landscaping.
The center consists of three joined buildings of 425,000 sf, 200,000 sf and 16,000 sf containing a mix of office and warehouse space on 46 acres. The two smaller buildings are fully leased, The asking office rental rate is $21.50 per sf, plus utilities, "and we do a full build-out," Michael Balitsaris, Preferred's president, tells GlobeSt.com.
The site allows for additional development. "The next stages will be market-driven," Balitsaris says. "We've had interest and are entertaining a build-to-suit development. A national residential developer has also shown interest."
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