Four Falls looking to get some of its luster back

Four Falls Corporate Center, brushing off a bout of bad luck and looking a little dated, is getting $2 million in upgrades and is finally seeing an uptick in leasing activity.

“Four Falls is the come back of the century,” said Dan C. Dagit Jr., a broker with CBRE Inc. handling the leasing of the building. “When we got involved, it was in receivership and the property was in poor condition and tenants were leaving. This building was just getting creamed.”

In the summer of 2011, the property, which consists of two, six-story structures totaling 254,000 square feet, was put into receivership. In a deed in lieu of foreclosure, Thomas Properties Group Inc. relinquished the West Conshohocken, Pa., office complex.

LNR Partners, the special servicer, is also the owner of the building that can be seen from the Schuylkill Expressway. Under that arrangement, LNR is making its own value-add play with the building and is investing the money to make the improvements.

“This is different than any situation we’ve seen,” Dagit said. “They are committed to maximizing value through investment and leasing.”

Typically, a special servicer looks to lease up a property as quickly as possible and then hire a broker to sell it.

The capital improvements include making repairs to the building’s parking structure, the plaza entrance, deck around the parking including planters and railings. On the inside, the lobby and common areas will be refurbished and all new elevators will be installed. A new deli has moved into the building as a tenant amenity.

“The place is buzzing with activity,” Dagit said. “Leasing activity is brisk and tenant retention way up.”

When Dagit took over the leasing, Four Falls was about 70 percent full. Dagit is hoping by year-end that occupancy is up to about 85 percent to 90 percent.

Some new tenants include: Brian Communications, which is moving into 13,000 square feet; New Horizon Computer Learning, which leased 7,000 square feet for its headquarters; and Obermayer Rebmann Maxwell & Hippel, which opened a 2,000-square-foot office. Some existing tenants that stayed put include Merrill Lynch, Rhino Investment Partners, Brandywine Financial and Burns White, which also expanded by 5,000 square feet.

Source: Philadelphia Business Journal