Endurance Real Estate Group bought the Colwick Business Center in Cherry Hill, N.J., for the second time and at a greatly reduced discount.
The Bala Cynwd, Pa., real estate company bought the three building, 170,950-square-foot office complex at 53, 55 and 57 Haddonfield Road from a bank for $6.9 million, or about $41 a square foot. In 2006, Endurance sold the property to Bergman Real Estate Group of Iselin, N.J. for $22.35 million. Bergman lost the building to the lender.
Endurance initially bought the complex in 2005 for $15.2 million.
When Endurance sold the property in 2006, it was 84 percent leased. It's now 51 percent occupied. That’s part of the reason the sale price was so low this time around.
“The big piece of it is the South Jersey market,” said Bill White, who formed Endurance with Benjamin Cohen. “It’s a lot softer and rents are lower.”
The acquisition marks a shift in focus for Endurance. From 2009 through 2012, it concentrated on buying just industrial properties.
“We could see that the market was going to come back sooner,” White said. “That market has come back so strong and there are fewer opportunities so we are reorienting ourselves to focus on office in way that we hadn’t for the last three years.”
About a third of Endurance’s portfolio is dedicated to offices and it has a presence in South Jersey as owner of the Cherry Hill Business Park, which totals 700,000 square feet.
Colwick was constructed in 1987 and upgrades were made to the complex when Endurance was the previous owner. Wolf Commercial Real Estate has been retained to lease the space up.
Real Estate, Economic Development
Source: Philadelphia Business Journal
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