A 321,226-square-foot Malvern office complex housing the North American headquarters of Saint-Gobain and its CertainTeed Corp. subsidiary has hit the market and is expected to trade for as much as $140 million.
The two-building complex at 18-20 Moores Road last traded in February 2016. That’s when a venture between 90 North Real Estate Partners of London and Arzan Wealth of Dubai bought the office property for $123 million.
The property comes up for sale at a time when many office buildings that were on the market prior to the pandemic have subsequently been taken off. Most, if not all, of those buildings are occupied by multiple tenants and, these uncertain times — with unpredictable rents and tenants contracting or not signing new leases — have prompted landlords to hold off on transactions.
In contrast, there’s demand for office assets fully occupied by single-tenants on a long-term basis.
On a smaller scale, net-leased properties housing everything from AutoZone, Dollar General to DiVita Dialysis and other retailers such as Royal Farms have also been active sellers. Low interest rates and predictable rent payments have spurred those sales.
Net-lease properties, those leased to a single tenant on a long-term basis and frequently in free-standing buildings, are also attractive to those looking for a passive investment that generates a consistent, predictable return.
On a much larger scale are office buildings such as 18-20 Moores. The complex had originally been 236,704 square feet and occupied by Aegon, an international life insurance and pension company with a local presence.
E. Kahn Development Corp., J. Loew & Associates and Aegon affiliate, Aegon U.S. Realty Advisors, spent $80 million redeveloping what had been a 1960s vintage office complex for Saint Gobain and CertainTeed. The total gut redevelopment included connecting those two structures at 18 Moores Road, which totals 43,891 square feet, and 20 Moores Road, which totals 277,335 square feet.
The redevelopment of the complex involved creating a modern corporate office environment that incorporated many of the materials that the companies manufacture. It also includes an R&D facility and showroom for many of the companies’ products.
Saint-Gobain and CertainTeed each signed 15-year leases on the complex and moved in 2015. There are 10 years remaining on each of the leases with the expirations in the third quarter of 2030.
The property totals 60 acres just off of Route 202. However, what is up for sale involves the 36 acres upon which the headquarters building sit. Saint Gobain owns 14 additional acres and has plans to build a day care and meeting center on that parcel. The remaining land is owned by the seller and can be purchased separately.
*Article courtesy of Philadelphia Business Journal
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