NORRISTOWN, PA-A partnership affiliated with Spring House-based Straterra Property Group and Maguire & Partners Property Group has acquired Pinebrook Business Center. The a six-building, 116,000-sf office complex on Eisenhower Boulevard within Valley Forge Corporate Center sold for $10.6 million or about $91.38 per sf. The seller was WHVPW Real Estate, an entity of Irving, TX-based Archon Group, affiliated with Goldman Sach’s Whitehall Fund.

Mike Margolis, SVP, and Steve Marzullo, VP in the capital markets team of the Philadelphia-area office of Trammell Crow Co., represented Archon and Archon’s John McNamara and Tricia Moore led the disposition effort. Margolis says Archon acquired the center as part of a “nonperforming portfolio” and then “stabilized Pinebrook’s occupancy through an aggressive leasing and capital improvement strategy.”

The buildings were completed in the mid-1980s. Published office rental rates in the Valley Forge/King of Prussia submarket range between $22.50 per sf and $23.75 per sf. The office vacancy rate in the submarket stood just below 16.3% at the end of this year’s first quarter, according to reports from area brokerage firms.

“Despite the tempered office leasing demand in the past 24 months and the strong competition among landlords, Pinebrook was able to attract a high quality mix of tenants at strong rates and outperform the market,” Marzullo adds. Occupancy at the center is now about 90% and TCC’s property management group along with Gene McHale of Conshohocken-based Beacon Commercial Real Estate, which in the exclusive leasing agent, are credited with strengthening the asset, according to Marzullo.

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