211 South Gulph Road

King of Prussia, PA

Project:211 South Gulph Road (King of Prussia, PA)

Size:102,204 rentable sf

JLAM capitalized on the opportunity to acquire this office property at an attractive price from a motivated seller seeking to exit the last asset in its fund. The investment offered strong quantitative measures, with 97% occupancy, stable cash flow, long-term leases in place, and limited near-term capital expenditures; but JLAM also saw the differentiated qualitative features including high ceilings, excellent glass lines, open floor plans, and proximity to world- class amenities.

What made it special:

Motivated seller due to being the last asset in a fund and a failed previous
marketing effort, enabling JLAM to acquire at an undervalued price.
Favorable supply/demand dynamics, with supply decreasing due to office
conversions yet demand rising due to tenant migration from urban centers and the
popularity of Philadelphia.
Fundamentally strong performing asset, with the ability to acquire at a discounted
price despite the encouraging market tailwinds.
Convenient location, in close proximity to world class amenities including the King
of Prussia mall.
Strategic location for workforce and decision makers, offering excellent
accessibility with convergence of multiple major interstates.
Rare building attributes that enable unique tenant spaces (e.g. 24’ ceilings) as well
as operating and expense efficiencies.

Result:

Going-in cap rate of 8.24% providing average cash-on-cash returns in excess of
10% per year.
Secured favorable long-term fixed rate financing further enhancing investor
returns.
Plan to hold property for 4-5 years with strong cash yield and ability to exit with
sufficient remaining term on anchor lease.