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Blue Bell Sale Announcement

Website Editor • Apr 09, 2020

$24M sale of Blue Bell office building finalized

By Natalie Kostelni – Reporter, Philadelphia Business Journal
5 hours ago
Kairos Real Estate Partners has sold a 124,000-square-foot office building in Blue Bell for $24.85 million after buying the property four years ago for just $3.3 million.
AFA Realty Partners, an affiliate of Apex Financial Advisors in Yardley, bought 518 Township Line Rd. It was 80% occupied at the time of sale.
The deal was initiated in December before the pandemic affected the global economy and state mandates closed nonessential businesses. AFA Realty put the property under contract with a non-refundable deposit and began due diligence in earnest. By February the transaction was on track and projected to close April 1. The date was set.
Confident in reaching the finish line though still hedging, AFA Realty spent $1 million to lock in a 10-year loan with Univest when interest rates dropped earlier this year. “I felt it was opportunistic,” said Robert A. Connell, CEO of Apex. “I was happy to get a low rate.”
In recent weeks, some real estate deals have started to falter or fall apart altogether. What had been a routine matter of getting documents signed has turned into complicated logistics amid physical distancing recommendations.
To complete the sale, Kairos President Stephen J. Gleason had to drive to the Jenkintown home of a representative from a title company involved in the deal. Standing on the front porch, the deed was signed and notarized.
“He was on one side of the storm door and I was on the other,” Gleason said. “It’s definitely memorable. I didn’t expect this to be challenging because it’s a pretty clean property, but then again no one expected COVID-19.”
Kairos and Artemis Real Estate Partners of Chevy Chase, Maryland, bought the property in 2016. At the time, the building was 27% occupied and had been foreclosed upon. “It was in great shape physically but had no amenities,” Gleason said.
Consistent with its strategy, Kairos spent $4 million making a series of renovations to the interior and exterior of the building and adding amenities including a café and fitness and training areas, which tenants seek out in office buildings. The company spent more money leasing and fitting out tenant spaces.
New tenants to the building include: RSM, a global accounting firm, for 45,000 square feet; Jefferson Blue Bell Surgery Center for 18,000 square feet; Ostroff Injury Law in 10,000 square feet; Skanska USA renewed on 11,000 square feet; Arraya Solutions leasing 8,000 square feet; and Mutual of Omaha occupying 5,000 square feet.
“We like the property,” Connell said. “It boarders 476 and we just think it’s a nice building." But then again, Connell said, he also "always gets a deal.”
Kairos continues to own a 150,000-square-foot building at 980 Jolly Rd. in Blue Bell and is on the hunt for its next deal.
Doug Rodio, Brett Segal and Brett Grifo of JLL represented Kairos and Artemis in the transaction.
02 Feb, 2024
Yardley, PA – November 21, 2023 – AFA Real Estate Partners (AFA) purchased two Class A Office buildings in Saucon Valley’s Stabler Pathways corporate park on November 7, 2023. Located at 3701 and 3773 Corporate Parkway in Center Valley, PA the two-building portfolio comprises 146,000 rentable square feet of Class A Office space. The purchase price was $21,000,000. The combined portfolio is 76% leased with the primary tenants being Aesculap, Inc., a surgical devices company, and Fisher Clinical, a pharmaceutical and drug development company. AFA adds to its Lehigh Valley portfolio with the acquisition accompanying the 2020 purchase of 3477 Corporate Parkway in Center Valley. “Given the macroeconomic backdrop, we felt as though any opportunity to add to our portfolio had to present such potential that we could not say no. Our familiarity with and bullishness on the Lehigh Valley geographic subregion was a critical reason for this purchase,” said Robert Connell, Managing Member of AFA. “This project offered the right mix of in-place stability and asymmetric upside. We are never afraid to roll up our sleeves and do the hard work that needs doing, and we are confident that our efforts on this project will offer long-term rewards.” On the heels of its 2022 purchase of Arlington Center in Arlington, TX, and its 2023 second purchase in Blue Bell, PA, this acquisition now brings AFA's total commercial real estate portfolio to around 1.4 million square feet. The seller was PennCap Properties out of Bethlehem, PA. Financing for the purchase came from AFA investors and Community Bank out of Canton, NY.
13 May, 2021
Yardley, PA – May 13, 2021, AFA Real Estate Partners (AFA) purchased Montecito Towers in Las Vegas, Nevada, on May 7, 2021, for $48,600,000. The 177,341 square foot, six-story property in the northwest suburbs of Las Vegas is a trophy Class A office building boasting fine finishes, high ceilings, and a 7-to-1000 parking ratio. The property's anchor tenant is Asurion, one of the leading cell phone insurers in the United States. The recent sale of AFA's BJ's location enabled a 1031 exchange opportunity for AFA's investors, and the remaining financing secured was a $33,300,000 CMBS loan at an attractive 10-year fixed rate of 3.64%. AFA utilizes cost-segregation studies to optimize tax efficiency for our investors. "In a world of little to no yield, we are striving to find excellent quality diversification opportunities for our investors. Robert Connell, Managing Member of AFA, says "We view real estate as a cornerstone part of our clients' portfolios because they have the ability to provide excellent cash flows and tax benefits in today's times. The unprecedented low-interest-rate environment allows us to finance our properties at rates which enhance our investor's returns." This transaction was the second in a series of large commercial real estate transactions planned this year by the Yardley-based firm. AFA's commercial real estate portfolio consists of six properties located throughout Pennsylvania, New Jersey, and Las Vegas. AFA's total commercial real estate portfolio surpasses one million square feet. Important Disclosure Information Please Note: This is not a solicitation to invest in any future investment product. Private investment funds generally involve various risk factors, including, but not limited to, the potential for complete loss of principal, liquidity constraints, and lack of transparency. Investment in private funds is generally limited to qualifying investors. Unlike liquid investments, private investment funds do not provide daily liquidity or pricing. Please remember that past performance, success, or experience may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product (including those recommended or undertaken by Apex Financial Advisors, Inc.), will be profitable, be suitable for an individual's portfolio, or prove successful. Losses can and do occur. A copy of Apex's current written disclosure Brochure discussing its advisory services and fees remains available upon request or at www.apexfinancialadvisors.com .
13 May, 2021
Yardley, PA – May 13, 2021, AFA Real Estate Partners (AFA), on April 30, 2021, sold the BJ's located at 131 East Kings Highway in Maple Shade, NJ. This building housed a top-performing BJ’s store that included a liquor license and a retail tire shop. AFA purchased the building in August of 2016 for $15,600,000 and sold it to Realty Income, a publicly-traded real estate investment trust (NYSE: O), for $21,639,125. AFA Investors received cumulative annual cash flows of 8% and, utilizing the 1031 rolled over $2.09 for each $1.00 invested. The sale of the Maple Shade location enabled a 1031 exchange opportunity for AFA's investors. AFA utilizes cost-segregation studies to optimize tax efficiency for our investors. "In a world of little to no yield, we are striving to find excellent quality diversification opportunities for our investors. Robert Connell, Managing Member of AFA, says "We view real estate as a cornerstone part of our clients' portfolios because they have the ability to provide excellent cash flows and tax benefits in today's times. The unprecedented low-interest-rate environment allows us to finance our properties at rates which enhance our investor's returns." This transaction was the first in a series of large commercial real estate transactions planned this year by the Yardley-based firm. AFA's commercial real estate portfolio consists of six properties located throughout Pennsylvania, New Jersey, and Las Vegas. AFA's total commercial real estate portfolio surpasses one million square feet. Important Disclosure Information Please Note: This is not a solicitation to invest in any future investment product. Private investment funds generally involve various risk factors, including, but not limited to, the potential for complete loss of principal, liquidity constraints, and lack of transparency. Investment in private funds is generally limited to qualifying investors. Unlike liquid investments, private investment funds do not provide daily liquidity or pricing. Please remember that past performance, success, or experience may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product (including those recommended or undertaken by Apex Financial Advisors, Inc.), will be profitable, be suitable for an individual's portfolio, or prove successful. Losses can and do occur. A copy of Apex's current written disclosure Brochure discussing its advisory services and fees remains available upon request or at www.apexfinancialadvisors.com .
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