Gladstone Commercial Corporation has paid $15.4 million for a Class-A single-tenant office building located in the Philadelphia, PA suburb of Conshohocken. The 60,016 square foot building is 100 percent leased for the next 8.5 years to Jacobs Engineering Group. Jacobs is a publicly-traded, Fortune 500 design and construction contractor, which has occupied the building since its completion in 1996. The seller, an affiliate of Oliver Tyrone Pulver Corporation (“OTP”), the original developer of the property, has been retained as property manager post-acquisition. Gladstone Commercial assumed the existing fixed rate mortgage which has approximately 8.8 years remaining at a rate of 3.55 percent. Robert Fahey and Jerry Kranzel of CBRE represented OTP in the sale.
“This is our first acquisition in the Conshohocken submarket of Philadelphia, which continues our strategic growth in both primary and strong secondary markets in the U.S.,” said Matt Tucker, Managing Director of Gladstone Commercial. “The 8.5 years of remaining lease term will provide our investors attractive stable returns during the primary lease term, and good upside potential given the high quality of the real estate, the strength of the Conshohocken submarket and strong macroeconomic drivers of the Philadelphia economy.”
