HORSHAM, PA-The New York City-based Praedium Group and CDK Partners, which is based in Narbeth, has acquired the Tripoint portfolio. The three flex/industrial properties traded for nearly $23.2 million or $75 per sf. The seller was a partnership between the Philadelphia-based Lupert Adler Group and investor Andy Hicks.
The portfolio has an aggregate of 310,415 sf. The largest of the properties is a 152,184-sf building at 200 Welsh Rd. here. It was built in 1968 and renovated in 1989. It is currently 100% leased to Tel-Drug of Pennsylvania, an affiliate of Cigna and NutriSystem Inc. This asset also includes an additional 1.5-acre parcel that can be used for expansion or future development. However, Bob Kagan, CDK's managing partner, tells GlobeSt.com, "I'm not counting on that. We'll explore that potential, but don't have any plans for development now."
The other properties are in Warminster. One is a single-story, 44,400-sf building at 650 Louis Dr. that was built in 1989 and is 84% leased. The third is a single-story, 113,831-sf flex/office building at One Ivybrook Blvd., which was also built in 1989. It is currently 62% leased.
Kagan describes them as class B facilities and says the rent rates vary, but range between $6 per sf and $11 per sf, triple net. The vacancy rate in the Horsham/Willow Grove submarket is below 10%, he confirms and says, "we see upside potential in these properties," he says. Philadelphia-based Flynn Co. is handling leasing.
This acquisition is CDK's fifth joint venture buy with Praedium. Kagan and Chris Hughes, a Praedium principal, negotiated for the buyer. Jerome E. Kranzel of Cushman & Wakefield of Pennsylvania represented the seller.
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