HORSHAM, PA-Reed Technology Information Services has signed a 10-year lease for all of the space in a 120,000-sf build-to-suit with Malvern-based Liberty Property Trust. A Liberty spokeswoman tells GlobeSt.com its total investment in the building is $22 million.
The RTIS lease is valued at in excess of $26 million and includes construction of the building, according to a statement from Dennis Durkin and Brian Smyth of the Philadelphia office of CB Richard Ellis. They represented RTIS in collaboration with Robert Martin and Leonard DiMicelli of CBRE's New York office. Calls to Durkin and Smyth were not returned by press time.
The site is on Witmer Road in the Pennsylvania Business Center, and according to the Liberty spokeswoman, the building is a class A facility that will be called Seven Walnut Grove. It is scheduled for occupancy in July 2007.
RTIS is a document processing firm that processes applications for pending US patents. It currently occupies an aggregate of 105,000 sf in three Liberty-owned buildings in the center. Its headquarters is now at 275 Gibraltar Rd. and it also has space at 117 Gibraltar Rd. and 125 Rock Rd. The company will relocate from these buildings and consolidate in the new one, which contains room for expansion.
Pennsylvania Business Center is a multi-building park with an aggregate of four million sf of office and flex space. Of that, Liberty owns approximately 2.5 million sf. During a conference call this week, Bill Hankowsky, Liberty's chairman and CEO, was asked about space vacated by a tenant that moves into a new Liberty building.
"It's good when a tenant wants to expand and we can accommodate them with new product," Hankowsky said in reference to Liberty's redevelopment for current-tenant GMAC Mortgage Corp.'s new headquarters. "With a build-to-suit, we have time to re-lease their former space. The tenant was leaving to consolidate whether we built or not. This way, we keep them and have an opportunity to re-lease space in a one-year cycle."
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