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WARRENDALE, PA-Keystone Property Group has entered the Pittsburgh market with its acquisition of the former Ericsson headquarters property in Allegheny County. The 101-acre campus traded hands for $39.7 million.

The Ericsson Corporate Center consists of five buildings at 1000, 2000, 3000, 4000 and 5000 Ericsson Dr., totaling 557,000 sf. The campus was built between 1996 and 2001 for FORE Systems Inc., which was later acquired by Ericsson. The 72%-leased complex features a cafeteria, breezeways between all buildings, fitness center, walking and jogging trails and a basketball court. Current tenants include Ericsson, Heinz and Siemens.

The purchase is Bala Cynwyd, PA-based Keystone’s first acquisition in the Pittsburgh market. “This was a corporate disposition and one of the areas we focus on is purchasing excess corporate real estate,” Keystone senior vice president Matt Sigel tells GlobeSt.com. “The existing tenant base in the park is very high quality and there’s a significant amount of vacancy in the park. From a value-add strategy that appealed to us, because we’ll be able to lease up that space and capture the value from that.”

The area around the park has seen a boon recently due to residential and retail growth. Westinghouse Electric Co. will be moving 4,000 employees into its new built-to-suit facility two miles from Ericsson Center sometime next year.

“One of our core strategies for this property was to take what was a user-occupied campus, improve some of the areas of the campus even more and go after some of the consultants and contractors who will be relocating to be close to Westinghouse,” Sigel says. For improvements, Keystone plans to add 350 parking spaces to the campus and either finish a partially completed building or dismantle the existing steel frame.

The seller, Ericsson, was represented by Cushman & Wakefield Inc. Keystone was represented in-house.

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