Morgan Properties Buys PA Office Complex
- Jan 09, 2019
By Keith Loria
Morgan Properties Inc. has acquired Millennium I, II and III, a three-building creative office complex in Conshohocken, Pa., from a fund managed by Stabilis Capital Management, for $52 million.
The three buildings, located at 20 Ash St., and 225 and 227 Washington St., were completed between 2000 and 2003 and total almost 200,000 square feet.
HFF Senior Managing Director Doug Rodio and Managing Director Brett Segal and Tom Hall negotiated the deal on behalf of the seller. The firm also procured the buyer.
“Millennium offers significant near-term upside for an experienced owner like Morgan Properties to take advantage of all that Conshohocken has to offer,” Rodio said in a prepared statement. “I’m very excited to see what happens at the property in the coming years.”
Convenience for commuters
The properties are situated in one of Greater Philadelphia’s most desirable locations, on the banks of the Schuylkill River. The buildings offer convenient access to interstates 476 and 76, providing great access to the entire Philadelphia region. It is also just across the street from Conshohocken Station, which offers Septa’s regional rail service for commuters, making it an easy commute from the city.
In late 2017, Morgan Properties acquired The Shops at Mark Center, a 63,320-square-foot mixed-use portfolio in Alexandria, Va., from JBG SMITH Properties for $509 million, the highest-priced transaction of the year.
According to Cushman & Wakefield’s Philadelphia suburban office third-quarter 2018 market report, the overall vacancy rate for suburban Philadelphia, in which Conshohocken resides, grew 13 percent year-over-year. Rents in suburban Philadelphia for Class A office space also increased from the previous year by more than 2.9 percent to $27.25 per square foot.
Image courtesy of HFF