An office complex in Fort Washington, Pa., where
NutriSystem Inc. makes its world headquarters has sold to a local real estate
investment firm.
The Fort Washington Executive Center, a
400,000-square-foot office property at 600, 601 and 602 Office Center Drive, was
bought by Kairos Real Estate Partners of King of Prussia, Pa., along with
Artemis Real Estate Partners of Bethesda, Md.
It was sold by CW Capital Asset Management, a special
servicer that had control of the complex after its previous owner, a partnership
consisting of Bressler & Reiner Inc. of Maryland, lost it to its lender.
While terms of the recent transaction weren't disclosed,
the property reportedly traded for around $30 million. It was 73 percent
occupied at the time of the sale though a 25,000-square-foot lease was recently
completed with Allstate that brings the building's occupancy up to 79 percent.
Other tenants include AstraZenaca Pharmaceuticals, McNeil and AmeriHealth
Administrators.
Fort Washington Executive Center was part of a portfolio
of suburban office properties that Bressler & Reiner bought at the peak of
the real estate market. Like many investors who bought at that time in the
cycle, they ran into trouble when loan terms couldn't be renegotiated or
vacancies filled up with new tenants. For a time, Fort Washington Executive
Center was holding its own especially after NutriSystem signed in 2010 a
12-year deal to move into 120,000 square feet at 600 Office Center Drive. The
lease put the building on more solid footing and back filled a large portion of
135,000 square feet vacated by Hartford Insurance Co., which moved out of the
space when it relocated to Horsham.
The Seltzer Organization constructed the complex in 1988
for Prudential Insurance Co. A division of Prudential that handled the AARP
marketing, billing and other services occupied the three buildings until 1996
when AARP decided to divvy up that business among three other insurers. It was
then turned into a multi-tenanted office building.
Kairos hired Jeff Mack and Adam Shute of Newmark Grubb
Knight Frank to oversee leasing of the property.
Source: Philadelphia
Business Journal
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