1000 Floral Vale
In 2014, Advalurem completed the acquisition of 1000 Floral Vale, an 87,000 square feet office building located within the Philadelphia MSA in Lower Makefield Township, Yardley, PA. Advalurem sought to purchase the property in partnership with a local operating company and structured the investment with preferred and JV equity to own a majority ownership position.
The property is strategically located in an area that benefits from an educated workforce, executive housing and good transportation networks. The area also boasts tops schools, low taxes and an active community that preserves its high quality of life. These factors have made the region attractive for businesses, especially in the healthcare, biomedical and pharmaceutical industries.
At acquisition, the property was 80% leased to credit tenants. The business plan calls for leasing the vacant space, stabilizing the rent roll, and selling the property upon loan maturity. Advalurem structured the investment as preferred equity and subsequently made a follow-on JV equity investment. It works in conjunction with its partner in all management affairs of the property. Advalurem expects to hold the investment for seven years with an overall return in the mid-teens.