Budd Commerce Center
2450 Hunting Park Ave., Philadelphia, PA
2.4 million SF, 75-acre Industrial Campus Redevelopment
Purchased a 2.4 million square foot abandoned industrial campus, comprised of 20 buildings, and converted it into office, retail, residential, distribution and manufacturing facilities.
Renaissance at Columbia Gateway
7125 Columbia Gateway Drive, Columbia, MD
600,000 SF Warehouse & Office Redevelopment
Purchased and re-developed 600,000 square feet of warehouse space and converted 300,000 square feet into office space to create a multi-use building. Major tenants included AT&T, Cigna, Nationwide, and SAIC among others.
Spring Mill Corporate Center (fka Lee Tire Co.)
1100 East Hector St., Conshohocken, PA
620,000 SF Redevelopment of Vacant Tire Factory
Purchased the abandoned 620,000 square-foot Lee Tire factory and invested
$40 million to re-develop the space into Class-A office space.
American Standard Plant
200 American Metro Blvd, Hamilton Township, NJ
450,000 SF, 112-acre Toilet Factory Redevelopment
Purchased a 450,000 square foot toilet factory and converted it into Class-A
office space.
CASE STUDY 1 :
TEXAS INSTRUMENTS HEADQUARTERS
Texas Instruments Headquarters
34 Forest Street, Attleboro, MA, 02703
THE CHALLENGE:
Texas Instruments owned a 1,200,000 sq ft campus that was in desperate need of an upgrade and remediation. From 1952 to 1965, the company’s Forest Street plant fabricated enriched uranium fuel elements for the Navy Reactors Program, the Air Force and for other government research. They wanted to bring their site up to date to provide them with an innovative office, and remediate the site from the contamination.
THE SOLUTION:
Preferred Real Estate Investments agreed to buy 261 acres with 966,000 square feet of buildings owned by Texas Instruments near Route 123 in Attleboro, Mass. As part of the deal, Preferred built a new 220,000-square- foot business and technology center on undeveloped land at the site and leased it back to TI for 20 years. Texas Instruments also signed a 10-year lease on manufacturing space that already exists on the property.
THE BENEFIT:
The newly renovated was the headquarters for the Texas Instruments until their semiconductor business was sold in 2006.
CASE STUDY 2 :
PHILADELPHIA ELECTRIC COMPANY (PECO)
BEFORE
Philadelphia Electric Company (PECO)
THE WHARF AT RIVERTOWN
2501 SEAPORT DRIVE CHESTER,PA
AFTER
THE CHALLENGE:
In 1917, Philadelphia Electric Company built a landmark Power Plant along the banks of the Delaware River in Chester, PA. The antiquated Coal-to-Steam-to Electric plant was vacated in 1981 by PECO Energy, an Exelon Company, after it was deemed inefficient compared to modern generation facilities. The 400,000 sf structure, which resides on 100 acres, was laden with environmental challenges both in the building and on the site. In the summer of 2000, PECO determined the highest and best use for the site was to demolish the existing structure and remove the environmental liability from their books.
THE SOLUTION:
Preferred real estate investments, inc. ("PREP) proposed to assume the responsibility for the environmental clean-up of the building and to convert the historic generation facility into a 400,000 SF class "A" office building. The additional land was developed into an office park with a total of 1.4 million sf of space and included two marinas, restaurants, and a river walk. This development opened the site’s half mile of riverfront to the community for the first time in nearly 100 years. As part of the development, PREI had the site's keystone opportunity zone designation re-configured to maximize the development opportunity and allow future tenants to realize exceptional tax incentives for locating their businesses at the site.
THE BENEFIT:
PREI spent 1.5 years and nearly $10 million on environmental clean-up and demolition just to get the building ready for conversion into a modern office facility, As a result, the building is scheduled for delivery in late 2003 and is 70% pre-leased to office users with a total investment of over$60 million. The development has garnered remarkable support from all levels of government and created a powerful public relations story for Exelon Energy, all while reducing their environmental Viabilities and saving a historic structure.
CASE STUDY 3:
QUAKER CHEMICAL CORPORATION
BEFORE
Quaker Chemical Corporation
Corporate Headquarters
1001 EAST HECTOR STREET CONSHOHOCKEN, PA
AFTER
THE CHALLENGE:
Quaker Chemical Corporation, an NYSE publicly traded company, was searching for a new headquarters location. Quaker's current headquarters property included a shuttered chemical manufacturing plant that had not been used for several years. Their goal was to lower their cost of occupancy, realize value from their existing real estate assets, and to create a world-class office environment that would build their brand and attract and retain high-caliber employees. Due to the fact that Quaker Chemical had owned the site for over 100 years, their basis was extremely low and a sale of the property would create unwanted tax implications.
THE SOLUTION:
Preferred Real Estate Investments, Inc. proposed a redevelopment plan that created a new unique Class "A" office park, allowed the Company to remain at its site, and reduced its cost of occupancy. Quaker Chemical's former manufacturing plant was converted into Class "A" office space. This new space incorporated the history of the building and Quaker Chemical, yet also provided the attributes demanded by today's office users including high ceilings, the tax large floor plates, abundant natural light, and redundant technology infrastructure. Quaker Chemical leased back their portion of the project at a below-market rate.
In addition, Preferred expanded the facility by 100,000 square feet, utilizing architectural accents that created a consistent theme throughout the entire project. This additional space was leased to several tenants who also desired a unique office environment.
THE BENEFIT:
PREI spent 1.5 years and nearly $10 million on environmental clean-up and demolition just to get the building ready for conversion into a modern office facility, As a result, the building is scheduled for delivery in late 2003 and is 70% pre-leased to office users with a total investment of over$60 million. The development has garnered remarkable support from all levels of government and created a powerful public relations story for Exelon Energy, all while reducing their environmental Viabilities and saving a historic structure.
CASE STUDY 4 :
VERIZON COMMUNICATIONS
Verizon Communications
I -95 TECHNOLOGY CENTER / 311 NEW RODGERS ROAD LANGHORNE, PENNSYLVANIA
THE CHALLENGE:
When Verizon merged with GTE, they wanted to create a new design standard for all of their offices. The new design concept would be an open space environment, eliminating traditional offices. Penn-Del Directory, a local division of Verizon, was struggling to reconfigure its current 45,000 square-foot traditional space to the new open office environment. Their existing lease arrangement prevented them from moving to a new location.
THE SOLUTION:
Preferred Real Estate Investments was asked to reconfigure the existing space. Preferred provided Verizon with a cost-effective solution that eliminated the need to relocate, rent two buildings and incur moving expenses. The new office configuration even lowered the company's occupancy costs. Preferred also worked closely with Verizon's real estate group to create an efficient, open work environment designed to promote employee interaction and generate enthusiasm in their new workplace.
THE BENEFIT:
Verizon's business shutdown and relocation was accomplished in just one weekend, so normal operations were never disrupted. The new space design featuring 12-foot finished ceiling heights and dramatic workspaces - allowed Verizon to save money by decreasing their space requirements by 7,000 square feet, as well as enabling them to increase the number of employees working in the new environment. Geographically located adjacent to I-95, this new facility provided Verizon with attractive signage opportunities, a large parking area, and plenty of room for future expansion
CASE STUDY 5:
NATIONWIDE/ GARTMORE GLOBAL
Nationwide/ Gartmore Global
1200 RIVER ROAD / RIVER PARK II
CONSHOHOCKEN, PENNSYLVANIA
THE CHALLENGE:
Nationwide Financial is one the world's largest financial services companies. The company wanted to expand its asset management business and, in 1999, hired Paul Hondros, a former senior executive with Fidelity Investments, to form a new company. This new company, Gartmore Global (formally Villanova Capital), was interested in state-of-the-art office space to help them attract top-notch talent and reflect the sophisticated nature of their business. Philadelphia, Pennsylvania was the company's first choice for its new headquarters location. But lease rates in Philadelphia exceeded $30 per square foot and existing properties were selling for more than $200 per square foot. Gartmore Global needed a more cost-effective solution, but one that would not compromise the company's functional and aesthetic requirements.
THE SOLUTION:
Preferred Real Estate Investments and Nationwide's existing relationship included several leases on properties that were owned and redeveloped by Preferred, and then offered to Nationwide at rates up to 20% less than current market prices. Preferred presented Gartmore Global with an alternative site-the former Simpson Paper facility in Conshohocken-just outside of Philadelphia. Preferred purchased the property and converted the 250-year-old building from a 600,000 square foot paper mill to a 279,000 square foot Class A office park. Preferred not only met all of Gartmore Global's space requirements but preserved the centuries old historic site.
THE BENEFIT:
With a base rental rate below current market prices, Preferred's solution enabled Nationwide to upgrade the building's amenities significantly. The old paper mill still reflects its 18th-century roots but has been renovated into a contemporary office space. The unique setting blends original stone, brick, and wood construction with high-tech finishes, glass-enclosed offices, and an interior that is awash in natural light. The building is located on a 100- acre wooded land reserve, just a 20-mile bike ride to historic Valley Forge National Park and the Philadelphia Art Museum. The dramatic facility offers an onsite train station with a convenient reverse commute. Gartmore Global signed a lease and moved into the facility less than 60 days later.
CASE STUDY 6:
MAY DEPARTMENT STORE
BEFORE
AFTER
The May Department Store Company
801 Market Street
8TH & MARKET STREETS PHILADELPHIA, PA
THE CHALLENGE:
In 1996, The May Department Stores Company acquired the Philadelphia, PA based Strawbridge & Clothier department store chain. As a result, Strawbridge's corporate headquarter operations were vacated and centralized in St. Louis, MO (home of the May Co.). Further, Strawbridge's 1,000,000 SF historic Flagship Building, built in 1932, was left half vacant for a period of 5 years. The first six (6) floors remained as a retail operation. The May Co. was looking to maximize the excess real estate, without disrupting their retail store in the bottom half of the building.
THE SOLUTION:
Preferred Real Estate Investments, Inc. CPREI") proposed a condominium ownership structure, purchasing and redeveloping the upper seven (7) floors of the building (+/-400,000 SF). This allowed May Co. to maintain its retail presence on the lower floors, and reduce its cost of occupancy. PREl’s plan included separating the mechanical infrastructure of the upper floors, creating code-compliant space, having the site entered in the National Register for Historical Places, and leasing the space to outside users.
THE BENEFIT:
PREI had leases signed with two (2) anchor tenants (the GSA: 165,000 SF and Citizens Bank of PA:125,000 SF) at settlement. The office unit on the upper floors is now fully leased, adding 2,000 jobs/people to the once vacant space. The May Co. is extremely pleased with the quality of products produced by PREI and the additional foot traffic created in their retail space by the office users.
The May Co. was also able to realize an influx of capital and a dramatic reduction of operating costs for the facility without any major change to its operations.
CASE STUDY 7:
LILLY PULITZER HEADQUARTERS
Lilly Pulitzer Headquarters
800 THIRD AVENUE KNG OF PRUSSIA, PENNSYLVANIA
THE CHALLENGE:
Lilly Pulitzer was leasing 40,000 square feet for their corporate headquarters in King of Prussia, PA. Realizing the need to increase their space, they began searching for alternative space close to their existing location. After surveying the market, it was evident that there were limited alternatives to meeting their specific needs. For years, the active King of Prussia market had been transforming from a one-time industrial hub to an office and retail center. As a result, many of the multi-use facilities had been converted to 100% offices or demolished for new office or retail development. Lilly Pulitzer did not want to separate administrative and office personnel from their design team and warehouse operations but were unable to identify an affordable solution in their desired location.
THE SOLUTION:
Having a deep understanding of the current limitations in the King of Prussia market, Preferred Real Estate Investments approached the president of Lilly Pulitzer early in the site selection process. Preferred identified a building slated for redevelopment within their location parameters and presented it to Lilly Pulitzer with several occupancy alternatives. Preferred offered to purchase, develop and lease the facility to Lilly Pulitzer, or to assist Lilly in purchasing the property themselves and utilize Preferred's redevelopment expertise to expedite the approval process and value engineer the development costs. Lilly Pulitzer chose to purchase the property and retain Preferred to manage the acquisition, approvals, design and construction.
THE BENEFIT:
Lilly Pulitzer maintained their corporate culture by keeping its employees under one roof and, utilizing the extensive resources and operations offered by Preferred's team, we're able to identify an opportunity and act immediately in a very competitive marketplace. Preferred coordinated the entire acquisition and construction process enabling Lilly Pulitzer to maintain focus on their operations without distraction. Preferred leveraged its extensive real estate competencies to save Lilly time and money while achieving an award-winning design for its employees.
CASE STUDY 8:
FIRST DATA CORPORATION
First Data Corporation
211 SOUTH GULPH ROAD KING OF PRUSSIA, PENNSYLVANIA
THE CHALLENGE:
First Data Corporation is a global leader in electronic commerce and payment services. In 1996, First Data acquired Fund-Planned Services, along with that company's 10-year lease commitment that was less than two years old. First Data quickly realized it would soon need additional space but was unable to get an expansion plan approved by the current landlord. Through a national brokerage firm, they began a search that included Class A facilities, existing multi-story offices, and one-story flex offices. The company was anxious to move into their new facility quickly and wanted a flexible office design, open floor plates, and a large parking area.
THE SOLUTION:
Preferred Real Estate Investments owned an older, 110,000 square foot manufacturing & warehousing facility less than three miles from First Data's regional offices. First Data was impressed with just about everything the facility offered. Particularly the expansive highway visibility, large open floor plan and high ceilings. Preferred arranged a buyout agreement with the existing warehouse tenant, immediately freeing up 80,000 square feet of space. First Data's construction managers worked with Preferred's architects and construction staff to create a redevelopment plan. Preferred began demolition in October 1998 and delivered the Class A facility to First Data on January 8, 1999.
THE BENEFIT:
The newly renovated 80,000-square-foot facility opened with modern mechanical systems, a sophisticated computer room, training facilities, and private offices. In addition, there were 20,000 square feet of additional space available for expansion.
CASE STUDY 9:
ROHM & HAAS
Rohm & Haas
Bristol, Pennsylvania
THE CHALLENGE:
The Bristol plant opened around 1917 to manufacture Oropon, a synthetic leather bating product, following dissatisfaction with the company's manufacturing facility in Chicago. Rohm & Haas in 2005 no longer fully utilized their former chemical manufacturing plant located in Bristol PA and decided to sell the property. They wanted to remain a tenant in the 33% of the property they were selling and sign a lease for the next 10 years.
THE SOLUTION:
Preferred performed a complete decommissioning of the existing chemical manufacturing equipment including Asbestos and PCB Abatement. Preferred also performed ongoing groundwater monitoring and the separation of the wastewater treatment system.
THE BENEFIT:
Preferred redeveloped approximately 300,000 sq ft in addition to the 180,000 sq ft that Rohm and Haas decided to lease back.
CASE STUDY 10:
RHODIA
Mid- Atlantic Corporate Center
256 Prospect Plains Road, Cranberry, NJ
THE CHALLENGE:
In 2005 Rhodia Corporation, a subsidiary of the French Chemical company was based out of Cranberry NJ, and owned this 83-acre site for the past15 years; it had 14 buildings with 350,000 square feet, and just under 500 people working there. A Spokesperson for Rhodia said, “We are occupying various percentages of all of the buildings at the moment, and we feel we could probably use one-third of the space.” Three of the fourteen buildings were being used as R&D labs and would need to be remediated. Rhodia also needed some time to find a new space.
THE SOLUTION:
THE BENEFIT:
Rhodia was able to move down 100,000 sq feet of lab space usage and signed a longer-term lease to stay on the Mid- Atlantic campus.
Preferred saw in the campus the opportunity to redevelop a lushly landscaped campus with 2,000 feet of frontage along the New Jersey Turnpike in the middle of the typical industrial Exit 8 corridor of the turnpike into a premier office park tailored to headquarters facilities.
Preferred leased Rhodia for one year as they looked for a new campus and then redeveloped and reused seven of the buildings, encompassing approximately 250,000 square feet into office condos.
Approximately 100,000 square feet of office space was demolished to make room for future build-to-suit opportunities that could total approximately 400,000 square feet