Three Class A office buildings in a strong submarket, with 95% occupancy, long-term leases and attractive cash-on-cash returns
CLEVELAND, OHIO, June 9, 2017 – Ten Capital Management (“TCM”) today announced its acquisition of Valley Creek Corporate Center, a 259,163 square feet, Class A office complex located at 220, 222 and 224 Valley Creek Boulevard in the Exton/Malvern submarket of Chester County, Pennsylvania, close to I-95,I-476, I-76 and the recently expanded US Route 202. The seller is CS Capital Management, Inc., a real estate investment management and advisory company based in California.
The Property is 95% leased to a diverse mix of high quality tenants. The five largest tenants, who make up 84% of the rent roll with a combined average weighted lease term of 6.2 years, use Valley Creek as their global corporate headquarters. The Property offers ample surface parking, food service, on-site walking trails and provides tenants with immediate access to public transit and several nearby restaurants, shopping centers and hotels.
Home to finance, technology, and professional services companies, the Exton/Malvern submarket is the second largest core submarket in Suburban Philadelphia with 13 million square feet of office inventory. The submarket sits at convergence of Route 202, Route 30 and Interstate 76, and features superior infrastructure, proximity and convenience to a significant labor pool and desirable local amenities. Over the past few years, the Exton/Malvern submarket has experienced steady rent growth and declines in vacancy.
Paul DiSandro, a TCM Partner and Portfolio Manager, said, “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. The combination of lease term and contractual rent growth provides investors predictable cash flow over the long-term.”
Ben Adams, TCM’s CEO, adds, “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 well-positioned to outperform through market cycles.” About Ten Capital Management Founded in 2011, TCM is an investment management firm investing across a broad spectrum of real estate strategies and seeks to deliver consistent, superior risk-adjusted returns to its global investor base. For more information, please go to www.tencapmanagement.com.
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