D2 Capital Advisors Arranges $8,500,000 Refinance for Vacant Office Building in Montgomery County, PA
D2 Capital Advisors has arranged an $8,500,000 refinancing for an 81,400 square foot office building at 1000 Campus Drive in Collegeville, PA.
Working on behalf of 1000 Campus Partners LLC (an affiliate of the D2 Organization), D2 Capital Advisors' Jack Cortese and David Frankel secured the loan through TriState Capital Bank.
1000 Campus Partners LLC acquired the building in June 2017 for $13.26 million, that acquisition financing was also arranged by D2 Capital Advisors. The building was fully leased to Iron Mountain on a long-term deal, but ownership was aware of Iron Mountain's plans to eventually consolidate to their Royersford, PA location. In November 2020 ownership came to an agreement with Iron Mountain, who had several years left of their term, on a buyout of its lease at 1000 Campus Drive.
The loan proceeds will be used to refinance the acquisition debt and provide funds for capital expenditures, tenant improvements, leasing commissions, and carry costs.
"This financing provides a lot of flexibility to market the property that most office landlords do not have right now," said David Frankel, COO of D2 Capital Advisors. "Executing a new loan on a vacant office building speaks volumes to the business plan, our relationships, and the property itself."
The owner plans to re-tenant the now vacant building and has the by-right ability to build another 80,000 square foot property on the 18-acre site. For additional development, the site has received interest for life sciences, residential, and self-storage development.
1000 Campus Drive is situated in the 340-acre master planned Providence Corporate Center. It is located at the intersection of Route 422 and Route 29. The immediate area offers a deep talent pool and more affordable office rents than the neighboring King of Prussia sub-market. Its proximity to the GSK, Dow, and Pfizer campuses has attracted attention from life science users and developers.
Ken Kearns and Brendan Kelley of Cadence Real Estate Advisors are the listing agents for the property.