Metzler RE Sells 305 KSF Corporate Center in Wilmington, Del., for $62M
- Feb 07, 2014
It’s been nine years since Metzler Real Estate acquired the Bellevue Park Corporate Center in Wilmington, Del., and now the company has sold the 305,000-square-foot complex to The Buccini/Pollin Group in a $61.5 million transaction.
Metzler disposed of the Class A asset on behalf of Metzler U.S. Real Estate Fund, its sponsored fund representing German institutional investors.
Carrying the addresses of 200, 300 and 400 Bellevue Parkway, Bellevue Park sits within close proximity to the central business districts of Wilmington and Philadelphia, and is considered one of the top suburban office complexes in the State of Delaware. The campus’s buildings, developed between 1987 and 1990, were 88 percent occupied when Metzler acquired them in 2005. Today the tenant roster is 98 percent full, with a host of financial services tenants calling the property home, including BNY Mellon and MasterCard. It’s a notable accomplishment in light of the current state of the local office market. The vacancy rate in Wilmington was 13.3 percent in the fourth quarter of 2013, according to a report by commercial real estate services firm Colliers International.
Lease up and let go–it was part of the plan all along. “The Fund strategy is to maximize individual asset value by fully leasing them on a long-term basis to credit tenants, and then disposing of them on a disciplined basis in what we believe is a high demand market for quality core assets,” Don Wise, president & CEO of Metzler, told Commercial Property Executive. “The timing of our sale of Bellevue Park Corporate Center was driven by our successful completion of this leasing strategy at the property.”
Metzler U.S. Real Estate Fund controls a portfolio of quality office, industrial and retail real estate across the U.S., so given its strategy, more investors will likely be competing to acquire more of the Fund’s premier, well-leased properties this year. Metzler will sell, Wise said, “as the market continues to demonstrate current levels of demand for such stabilized assets.”
Of course, it’s not all about dispositions. Metzler remains on the hunt for new acquisitions for the Fund. The real estate investment firm is keeping an eye on markets that have demonstrated or are expected to demonstrate solid job growth and sustained economic recovery in the near term.