Laurus Corp. Affiliate Sells 100pc Leased 501 Technology Building In Pittsburgh, PA
(3 months ago)
PITTSBURGH, Feb. 14: Laurus Corp., a US based private real estate investment and development firm, announced the sale of the 501 Technology Drive building in Southpointe Business Park, Canonsburg, Pennsylvania, achieving a 17.92pc project level IRR and 2.32x equity multiple in five years.
This three-story, 98,314 SF Class A office building is just 20 miles southwest of Pittsburgh CBD and is located in one of Pittsburg's premier submarkets.
501 Technology Drive is recognized as one of the top-tier office buildings in the area, located in the premier Southpointe Business Park, an 825-acre multi-use park. The building was 100% leased at the time of the sale, due in large part to the successful implementation of the business plan put in place in 2012 when 501 Technology Partners, LLC, an affiliate of Laurus Corp. acquired the building.
"501 Technology, as an investment, is the epitome of Laurus' ability to source institutional quality real estate and effectively implement complex value-add strategies. Laurus viewed this property as one that could potentially offer tenants a Class A office experience in one of the most coveted offices parks in the region with the right repositioning plan. Demand in this area is competitive, and the buyer was able to tap into a premier submarket. With a tactical renovation and reformulation of leasing strategy, Laurus was able to fully stabilize the asset as a Class A suburban office building," said Andres Szita, Chairman of Laurus Corp. Today, the building's major tenants include Primetals Technologies, occupying 60% of the property, Siemens, and Linc Network, making this property one of the premier core acquisition opportunities in the market.
Since its conceptualization in 1989, the Southpointe Office/Industrial Park has become one of the most successful business parks within the Pittsburgh MSA and is the only mixed-use development of its type in Southwestern Pennsylvania. Southpointe is anchored by some of the most globally recognized names in energy, technology and pharmaceutical sectors, including Halliburton, Ansys and Mylan Labs. The park is truly unique with the combination of amenities that provide an opportunity to "live, work, and play" without leaving the confines of Southpointe. Currently there are 2.56 million SF of Class A office space within Southpointe with a total vacancy of approximately 8.3%.
In the coming years, the Southern Beltway project will be completed, which is a series of new thoroughfares that are designed to facilitate travel throughout the regions surrounding Pittsburgh to the south, east, and west. Specific to the Property and Southpointe, the Southern Beltway will provide a direct connection from Southpointe to the Pittsburgh International Airport, thus bolstering economic development and diversity among the industries that are in Washington County and attracting new tenants to the submarket in addition to benefitting the existing tenants, their employees, and visitors.