King of Prussia office building comes up for sale; could trade for $200 per square foot

A local real estate fund is looking to sell 150 S. Warner Road in King of Prussia, Pa., two years after it acquired it.

The four-story building totals 155,000 square feet and for years, had gone under the name Walnut Hill Plaza. It is 97 percent leased up and expected to trade in excess $200 per square foot.

A fund comprised of Miller Investment Management and Hayden Real Estate, both locally owned firms, bought 150 S. Warner Road in 2012 for $11 million through an auction process. It had been given back to the lender by its previous owner, Thomas Properties Group, and was 50 percent vacant at the time.

The MIM-Hayden fund plowed $2 million into the building putting in a new lobby, bathrooms and common areas, and upgrading the HVAC and elevator systems.

With the renovations complete and the building leased up, the timing is right to sell the building, said Tony Hayden Jr. of Hayden Real Estate. The King of Prussia area is also seeing a lot of momentum as development activity, from residential to retail to build-to-suits, has been ramping up.

“This is something we’d love to hold forever but our fund has a shelf life,” he said.

There’s also not a lot of competition on the market. One of the last large office buildings to trade was 1000 Continental Drive, a 202,425-square-foot building that sold in February for $63 million.

Robert Fahey of CBRE Inc. is marketing the property.

Source: Philadelphia Business Journal