Pembroke IV has secured $21 million in financing for its three-story, 110,000-square-foot building at 777 Township Line Road in Yardley, Penn., according to an announcement by Cushman & Wakefield, which represented Pembroke in the deal.
Barclays Capital provided the 10-year, fixed-rate loan, which Pembroke will use to reclaim equity from the building and increase the term of its financing.
Bryn Mawr, Penn.-based Pembroke bought the property for $22.5 million two years ago, and the property has appreciated significantly since then, Gideon Gil, a managing director at C& W, told CO.
“They bought it when it was 62 percent leased. Within a year, they got the whole thing to 91 percent leased,” Gil said, adding that Ethos Health Communications and Morgan Stanley Wealth Management are new tenants. The University of Pennsylvania’s healthcare system also operates an outpatient clinic in the building as part of its expansion into the communities surrounding Philadelphia.
As tenants, Ethos and UPenn exemplify some of the strengths that Gil believes employers can find in the local workforce. Healthcare, drug research, and pharmaceutical marketing have long found a hub in the region. Earnings in Yardley are higher than the Pennsylvania average, but lower income taxes in the state offer financial advantages to companies looking for a regional headquarters compared with, say, Trenton, N.J., only about six miles east.
“Yardley is a pretty high-end suburb, and this is absolutely the best building in the submarket. The top floor has very good views, and the common areas are in excellent shape. There wasn’t a lot you needed to do [to make 777 an attractive leasing option],” Gil said.
Representatives from Barclays and Pembroke were not immediately available for comment.