Advalurem Group joint venture acquires 89,000 s/f 1000 Floral Vale

Advalurem Group has acquired an ownership interest in 1000 Floral Vale, a class A, LEED Gold-certified office building within the Philadelphia MSA. Built in November 2009, the 89,000 s/f office building meets institutional, energy-efficient and environmentally safe design standards, earning it a LEED Gold certification, among other accolades. Advalurem Group's local partner was able to negotiate an attractive going-in yield and $214 per s/f due to the seller's need for liquidity. The purchase price represents a discount to replacement cost as valuations were much higher during the last real estate cycle. The re-setting of basis from the developer's building costs allows Advalurem Group and its local partner, Pembroke Hobson, the opportunity to competitively price the remaining space, offering a real estate investment that exhibits stable cash flow and discernible upside.