Thank you for sharing!

Your article was successfully shared with the contacts you provided.

HARRISBURG, PA-Columbia, MD-based Corporate Office Properties Trust sells an 80% ownership interest in its entire portfolio here, which encompasses 16 buildings, aggregating 671,759-sf in three office parks, plus an option on 6.3 acres of land. The portfolio is valued at $73 million.

Mary Ellen Fowler, the REIT’s VP of investor relations, declined to disclose the identity of the buyer and tells GlobeSt.com, “it is a private group.” Neither would she identify the lender, which provided the buyer with two loans totaling $66.6 million in non-recourse, 10-year loans at a blended fixed rate of 5.81% to fund the acquisition.

The properties are: Commerce Park, which has two buildings aggregating 144,867 sf; Gateway Corporate Center with an aggregate of 409,680 sf; and Rossmoyne Business Center with three buildings aggregating 117,212 sf. COPT acquired the properties between 1997 and 2000 and it will continue to manage them.

Because the buildings are “now substantially under different ownership,” Fowler says, she also declined to tell GlobeSt.com the occupancy of the portfolio, the names of significant tenants or the average rental rate. On condition of anonymity, a metro-area office broker tells GlobeSt.com that the region’s overall office vacancy rate is below 10% and asking rates typically range between $16 per sf and $21 per sf. He declined to speculate on the buyer or vacancy in this portfolio.

This transaction pares down Corporate Office’s Pennsylvania portfolio to four properties, aggregating 960,349 sf in Blue Bell. Randall M. Griffin, president and CEO, says, “the sale into this joint venture will allow the company to re-deploy the proceeds into acquisitions and development in our core and expanding markets.” It is a major owner of suburban office properties in the Greater Washington, DC region. Fowler tells GlobeSt.com targets for expansion include San Antonio and Colorado Springs.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.