The Opportunity

The Valley Forge Office Center in Wayne, Pennsylvania, is a six-building, 34-acre office complex in an excellent location with easy access to major highways. There was an opportunity to disaggregate the portfolio by selling the buildings individually and create commercial condominiums. The Keystone team also saw the ability to expand building areas and create institutional floor plates.

The Strategy & Execution

To unlock the true value of the property, we deployed a multi-strategy approach. We developed a legal strategy for disaggregating the assets, a financing strategy that separately financed portions of the project, a redevelopment strategy that transformed the assets into 21st century spaces and a planning strategy to build out additional site space.

We created separate condominiums within the six-building complex to separate the high credit, long-term cash flow in Buildings 530/580 from the other four buildings with less certain revenue. In the other 4 buildings, we revamped the exterior with new glass lines, parking and landscaping. We expanded floor plates by adding an additional 27,000 sq. ft. to the complex's rentable square feet. We also built a three-story atrium in the lobby of Building 676, connecting it to Building 656.

The Result

We transformed a Class-B office park into a Class-A park. Rents commanded a premium, which were 16%-32% above where they were when we acquired the property. Keystone has since signed leases with high credit tenants including Blue Cross/Blue Shield, UNIM Life Insurance, Robert Half International, Inc., Signal Holdings, LLC and Affiliated Distributions.

To find out more about Keystone, contact our team today.