The complex was completed between 1917 and 1988 and vacated in2002 when the owner, Troy, MI-based ThyssenKrupp Budd Co.,consolidated operations near Detroit. Preferred plans to redevelopthe complex into Budd Commerce Center, a mix of office,distribution, manufacturing, retail and residential facilities.Rich Gorodesky of the local office of Colliers Lanard &Axilbund negotiated the transaction. Terms of the deal areundisclosed, and Preferred would not provide an estimate ofredevelopment costs.

Michael G. O'Neill, Preferred's founder and chairman, calls thesite "the single largest opportunity for redevelopment in the Cityof Philadelphia." He says his firm has already received"significant interest from the market for a number of the buildingson the site and [we] anticipate occupancy of over 50% by the end of2005." The complex is a designated Keystone Opportunity Zone, whichprovides significant tax breaks through 2011.

O'Neill describes one fully air-conditioned, 225,000-sfstructure as an "industrial gem" with 25-foot clear ceilings, fiveloading docks and six drive-in doors. "Since adaptive re-use ofexisting buildings provides for a lower cost basis over newconstruction," he says, "future tenants of the Budd Commerce Centerwill experience a direct economic savings through highlycompetitive rents." He did not disclose asking rates for space inthe center. Average asking rental rates for manufacturing andwarehouse/distribution space in Philadelphia County are $3.03 persf and $4.24 per sf, respectively, according to third-quarter datafrom the local office of Cushman & Wakefield.