1000 Floral Vale

1000 Floral Vale

Yardley, PA

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.

Asset Quality
Loan To Value

Investment Highlight 1

Institutional Quality Asset with Vale Enhancing Opportunity

1000 Floral Vale was completed in November 2009 and represents the first and only LEED Gold office building in the submarket. It has been designed with energy-efficient and environmentally safe specifications.

Investment Highlight 2

Credit Tenancy

The majority of the Property is leased to ‘investment grade’ tenants including Publicis and University of Pennsylvania Health System.

Investment Highlight 3

Limited Class A supply

1000 Floral Vale is one of two newer vintage, energy efficient commercial properties constructed in the market with no threat of new supply at current rental levels.

Investment Highlight 4

Strategic Market

Lower Makefield Township is the first office market in Pennsylvania along I-95 after the New Jersey boarder. The submarket has a diverse makeup with a significant local Life Science cluster with access to a skilled workforce.