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Medistar Corp. acquired a 264,000-square-foot office building at 3 Beaver Valley Road in Wilmington, Del., for $61.8 million, marking the first mid-Atlantic investment for the Houston-based developer and investor. The Class A building is 94-percent occupied with Farmers Insurance Exchange as the anchor tenant following significant recent lease-up efforts by Newmark Grubb Knight Frank (NGKF). NGKF Capital Markets represented both the buyer and seller, an entity controlled by KBS Realty Advisors, in the transaction.
“It is no surprise that this office building attracted multiple offers from a number of capable buyers across the country, given its well-established anchor tenant and proximity to many corporate headquarters,” said NGKF’s David Dolan, a senior managing director in the Philadelphia office, who arranged the transaction along with Executive Managing Director Jeffrey Mack and Senior Managing Director Michael Margolis in Wayne, Pa.; Senior Managing Director Neal Dangello in Wilmington; and Director Brett Segal in Philadelphia.
“3 Beaver Valley Road had been maintained by a leading institutional owner with the level of amenities associated with first-class properties and also will benefit from the quickly improving economy in the area,” said Mr. Dolan.
Built in 1995, the five-story property was recently improved with a renovated lobby, repaved parking lot and a new roof. The 18-acre site sits next to Brandywine Creek State Park and is near the intersection of Routes 202 and 92, about 25 miles south of Philadelphia.
Farmers Insurance Exchange, one of the insurers that make up Farmers Insurance Group, renewed its 211,000-square-foot lease for 10 years in the fourth quarter of 2014, according to Mr. Mack, who, along with Mr. Dangello, served as exclusive leasing representatives for the building. The NGKF representatives also helped arrange the 39,121-square-foot headquarters lease with Solenis International during the first quarter of this year. Approximately 13,000 square feet remains available on the fifth floor.
The New Castle City North submarket, where the office property is located, recorded the most absorption of any Wilmington submarket last year at 270,608 square feet, according to NGKF research. Class A asking rents were also the highest of all submarkets at $29.65 per square foot.
About Newmark Grubb Knight Frank
Newmark Grubb Knight Frank is one of the world’s leading commercial real estate advisory firms. Together with London-based partner Knight Frank and independently-owned offices, NGKF’s 12,000 professionals operate from more than 330 offices in established and emerging property markets on six continents.
With roots dating back to 1929, NGKF’s strong foundation makes it one of the most trusted names in commercial real estate. NGKF’s full-service platform comprises BGC’s real estate services segment, offering commercial real estate tenants, landlords, investors and developers a wide range of services including leasing; capital markets services, including investment sales, debt placement, appraisal, and valuation services; commercial mortgage brokerage services; as well as corporate advisory services, consulting, project and development management, and property and corporate facilities management services. For further information, visit www.ngkf.com.
NGKF is a part of BGC Partners, Inc., a leading global brokerage company servicing the financial and real estate markets. BGC’s common stock trades on the NASDAQ Global Select Market under the ticker symbol (NASDAQ: BGCP). BGC also has an outstanding bond issuance of Senior Notes due June 15, 2042, which trade on the New York Stock Exchange under the symbol (NYSE: BGCA). BGC Partners is led by Chairman and Chief Executive Officer Howard W. Lutnick. For more information, please visit www.bgcpartners.com.