KoP office building trades for $21M

A fully-occupied office building in King of Prussia, Pa., has sold for $21 million, marking the first purchase for a fund that has been scouting the region to build up a portfolio of value-add properties.

The 102,204-square-foot building at 211 S. Gulph Road was bought by Roseview-PMRG Fund I, a $250 million pool of money formed by PM Realty Group of Houston and the Roseview Group of Boston.

The single-story property was sold by O’Neill Properties Group and the Arsenal Fund, which bought it in February 2007 and converted what was an old data center into office space. The new owner plans to invest another $1.1 million to make a series of upgrades including installing better signage, updating the building’s façade and making improvements to other systems in the building.

“This acquisition was strategic for the fund because it is a value-add opportunity that is well located within an in-fill market near downtown Philadelphia,” said Steve Corridan, a partner in the Roseview Group, in a statement. “The area offers all the fundamentals we are seeking which include recent growth in both commercial and residential sectors.”

Last year, Roseview began to look for office properties in primary and secondary markets across the country. The group zeroed in on Philadelphia as one of the areas to invest.

It will buy in Center City and the suburbs and seek to invest between $15 million and $65 million on each transaction. It wants to deploy its money over the next two to three years.

Though Roseview Group's Corridan is based in Boston, he has a Philadelphia connection. Before establishing Roseview in 2006, Corridan was a partner with O’Neill Properties.

Source: Philadelphia Business Journal