By Scott Baltic
Liberty Property Trust, one of the largest office developers in the northeastern U.S., has sold an even dozen office properties in suburban Philadelphia in two separate transactions. The properties, totaling 779,190 square feet, changed hands for $106.9 million.
The assets in the larger sale are located at 440 and 460 E. Swedesford Road in Wayne, 2100 and 2201 Renaissance Blvd. in King of Prussia, 45 Liberty Blvd., and 300, 400 and 500 Chesterfield Parkway in Malvern. These buildings total more than 590,000 square feet and sold for $92 million.
The Swedesford Road properties are Class B assets completed in 1980 and renovated in 2006, according to Yardi Matrix data. 2201 Renaissance Blvd., built in 2000, and 45 Liberty Blvd., in Great Valley Corporate Center, are both Class B properties.
In a smaller transaction, Liberty sold 9, 11, 15 and 25 Great Valley Parkway in Malvern, Pa. These Class B properties total 186,248 square feet and were sold for $14.9 million. Additionally, Liberty also sold one 80,000-square-foot industrial building, at 301 Hill Carter Parkway in Richmond, Va., for $7 million.
The Malvern-based company did not respond to Commercial Property Executive’s request for additional information.
Class B suburban space underperforming
The availability rate for Class B office space in greater Philadelphia, after rising sharply in 2016 from a recent low a year earlier, is now 19.7 percent, which is much more in line with figures over the past six years, according to a third-quarter report from Savills Studley. Meanwhile, the average asking rent has steadily increased to $27.30. Colliers International reports that demand for suburban Class B space continues to lag, despite overall improving vacancies and rising absorption.
Images courtesy of Yardi Matrix