3 buildings in Valley Creek sold for $45M

Corporate park in Exton area was developed in early 2000s; property has room for more buildings in future

WEST WHITELAND » Sixteen years after breaking ground on what was envisioned to be one of the more impressive corporate parks in the area, investors recently bought the only three buildings put up so far in Valley Creek Corporate Center.

Holliday Fenoglio Fowler L.P., or HFF, announced it closed on the $45.3 million sale for Valley Creek, a three-building, Class A office complex totaling 259,163 square feet in Exton.

Developers originally broke ground for the property, once owned by Church Farm School, in 2001. At that time, the 200-acre site was envisioned to be one of the largest in square footage in the Philadelphia area.

The developers, the Rubenstein Co. of Philadelphia, said at the time that when complete, the high-end office park on Swedesford Road near routes 30 and 202 would be made up of 1.75 million square feet in 17 buildings.

Located in the three sold buildings – 220, 222 and 224 Valley Creek Boulevard – are companies like AutoTrader.com, Titanium Metals, iPipeline and Analytical Graphics.

HFF said in a statement it marketed the property on behalf of the seller, CS Capital Management Inc., a real estate investment management and advisory company based in California.

A joint venture between Pembroke IV, a real estate investment company based in the region with significant Class A office investments in the suburban Philadelphia and Chicago markets, and Ten Capital Management, or TCM, a privately held real estate invest-

ment management company based in Cleveland, Ohio, purchased the assets. Additionally, HFF worked on behalf of the new owners to secure a $34 million loan through Barclays Capital for the purchase.

“Valley Creek has consistently been a top performer in the market and provides the opportunity to acquire an institutional quality property at a significant discount to replacement cost in a strategic location,” said Paul DiSandro, a TCM partner and portfolio manager. “The combination of lease term and contractual rent growth provides investors predictable cash flow over the long term.”

Ben Adams, TCM’s CEO, agreed.

“We continue to stay focused and disciplined in buying excellent real estate at fair prices, and on providing an appropriate margin of safety that leaves our investors wellpositioned to outperform through market cycles,” Adams said.

Valley Creek Corporate Center is adjacent to the 725-acre Exton Park. The existing portion was completed in 2002, and the property is 95.2 percent leased, HFF said.

West Whiteland Township Manager Mimi Gleason said more than 100 acres of the original plan remain available for development. The property is located on both sides of Swedesford Road, she said.

Efforts to reach the Rubenstein Co. for an update on plans for the overall property were not successful.

PETE BANNAN – DIGITAL FIRST MEDIA Three buildings in the Valley Creek Corporate Center in Exton have been sold.

PETE BANNAN – DIGITAL FIRST MEDIA Three buildings in the Valley Creek Corporate center in Exton have been sold.