Mark Taylor, Dean Zang and Chris Munley of Marcus & Millichap arrange the sale of Marriott (Ground Lease) and PNC Bank Pads in Wayne, PA for 6.50% Cap Rate

Marcus & Millichap (01/27/2010) - Philadelphia, PA -December 2009  Marcus & Millichap Real Estate Investment Services, the nation's largest real estate investment services firm, has arranged the sale of a Courtyard by Marriott (Ground Lease) and PNC Bank branch office in Wayne, Pennsylvania. The property sold at the sales price of $7,250,000, which represents a 6.50% capitalization rate on current income. Mark Taylor, vice president of investments, and Dean Zang, associate vice president of investments, of the Philadelphia office of Marcus & Millichap, exclusively listed the property and represented the owner, Keystone 782 Devon Associates, LP, an affiliate of Bala Cynwyd based Keystone Property Group. Christopher Munley, an associate of the Philadelphia office of Marcus & Millichap, assisted in procuring the buyer, Ivymont Devon Associates, LP, a local, private family partnership.

This property was acquired in 2005 by Keystone Property Group along with the neighboring office buildings known as Devon Square. Recognizing that cap rates on net leased assets have remained lower than office buildings, Keystone listed the property with Marcus & Millichap in May 2009. After thirty days of marketing, half dozen offers were received. The best and final offer process concluded with Ivymont Devon Associates as the buyer in a tight, final round of bidding.

This investment offering consisted of a 149 room hotel leased to a subsidiary of Marriott Corporation on a long term ground lease with approximately 29 years of total lease term remaining, including options. The front parcel with frontage along Lancaster Avenue featured a PNC Bank branch with five years of lease term remaining. Both pads had rental rates below market and the area has severe barriers to entry. "We are very pleased with the outcome of this transaction. It takes a unique buyer to recognize the long term potential that exists in this investment. Aside from the below market rental rates, the attractive debt in place makes this a tremendous long-term hold," states Zang who led the transaction for the listing team.

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