JV Lands 800 KSF Life Science Lease Near Philadelphia
Materials science company Dow has signed a long-term lease extension for nearly 800,000 square feet at Northeast Dow Center in Collegeville, Pa., near Philadelphia. The owner is a joint venture between David Werner Real Estate Investments and GreenBarn Investment Group. The tenant was represented by Newmark in the transaction.
The campus at 400 and 500 Arcola Road which houses Northeast Dow Center spans 1.9 million square feet across 340 acres. It includes 14 interconnected office, life science and mixed-use buildings. The partners acquired it in August 2023 from Pfizer, which continues to occupy space at the property through its subsidiary Wyeth. The campus changed hands for $180 million, as reported by the Commercial Observer. The acquisition involved a $95 million CMBS loan from Starwood Mortgage Capital and BMO Capital Markets. It is located close to Interstate 76 and is roughly 22 miles from Philadelphia.
The building Dow occupies at 400 Arcola Road rises five stories and spans 885,233 square feet. It traded for $71.4 million, according to CommercialEdge data. In 2023, it also became subject to a $45.4 million CMBS loan from Wilmington Trust with a fixed rate of 7.29 percent, the same source shows. It was completed in 1992 and underwent cosmetic renovations in 2003.
Office leasing in Philadelphia
As of November, office listing rates in Philadelphia clocked in at $32, marking a 3.1 percent increase year-over-year and slightly below the national average of $38, according to a recent CommercialEdge report. The vacancy rate in the metro reached 14.3 percent, rising by 1.4 percent over 12 months—below the 18.2 percent national figure, the same source shows.
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