By Corina Stef
Keystone Property Group disposed of one of its suburban properties, Devon Square. According to Yardi Matrix, the buyer is Westover Cos., which paid $33.5 million for the two-building office complex in Wayne, Pa. The acquisition included a $26.7 million, 10-year CMBS loan originally funded by U.S. Bank in 2013. The property was jointly owned by Keystone and Argosy Real Estate Partners and last traded in 2005 for a reported $17.1 million. HFF’s Doug Rodio and Ben Appel represented the sellers in the transaction.
The complex sits on 7.4 acres at 724-744 W. Lancaster and encompasses the two-story buildings totaling 140,000 square feet. The structures were built in 1985 and upgraded in 2007 with new glass curtain walls, modern lobbies with granite flooring, refurbished common areas and bathrooms, a reimagined landscape and new HVAC systems. Amenities include an on-site bank and 468 parking spaces. The complex is 95 percent occupied by tenants such as Merrill Lynch, Penn Liberty Bank, Keller Williams and Main Line Surgery Center.
Located in the heart of Main Line, Devon Square provides direct access to Route 30 and easy access to major roadways such as Route 202, Interstate 76 and Interstate 476. Transportation is facilitated by the SEPTA train lines and 106 bus line. It is also bordered by Marriott Courtyard Hotel, Devon Square Shopping Center and various restaurants.
“After completing large-scale renovations at Devon Square, we were successful at leasing it up to nearly full occupancy, which made it a particularly attractive investment opportunity,” Keystone Property Group Asset Manager Jessica Jacobs said in prepared remarks. “Overall, this transaction reflects Keystone’s ability to successfully execute our value-add business plan, which enables us to consistently deliver excellent returns to our investors.”
Image courtesy of Keystone Property Group