PRAEDIUM, CDK ACQUIRE THREE COMMERCIAL PROPERTIES IN PHILADELPHIA AREA FOR $23 MILLION
April 25, 2006 - New York -The Praedium Group LLC, a New York City-based national real estate investment firm, announced today the acquisition of three commercial properties located in suburban Philadelphia. The portfolio was purchased in joint venture with CDK Partners of Narberth, Pennsylvania, for $23.15 million, or $75 per square foot.
The first property, located at 200 Welsh Road in Horsham, Penn., was built in 1968 and renovated in 1989. The two-story, 152,184 square foot industrial, warehouse and office building is 100 percent occupied by Tel-Drug of Pennsylvania, an affiliate of Cigna, and NutriSystem Inc. The property includes an additional 1.5-acre land parcel that can be utilized for expansion or future development.
The second property, a single-story, 44,400 square foot office building, is located at 650 Louis Drive in Warminster, Penn. It was built in 1989 and is 84 percent leased.
Built in 1989, the third property is a single-story, 113,831 square foot office and flex building located at One Ivybrook Blvd., also in Warminster. It is 62 percent occupied.
"The Horsham and Willow Grove submarkets are improving," said Chris Hughes, principal at Praedium. "We have great confidence in this area and the ongoing desirability of these properties."
"The acquisition of the Tripoint portfolio represents our fifth joint venture with Praedium, and we expect this to be equally as successful as our previous acquistions," said Bob Kagan, managing partner at CDK.
CDK Partners is a real investment firm specializing in repositioning office, industrial and residential properties. Since 1997, the firm has owned and managed over 1,000 apartment units, one million square feet of office space and 300,000 square feet of flex industrial space in Pennsylvania, New Jersey and Delaware. The total volume of transactions exceeds $150 million.
The Praedium Group is a real estate investor focusing on under-performing and under-valued assets throughout North America, with over $5 billion in total investments to date in more than 225 transactions comprised of 40 million square feet of commercial space and 44,000 multi-family units. Praedium was formed in 1991 with a leading international investment bank as its sole investor.
Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.
Praedium is investing its most recent $700 million real estate private equity fund, Praedium Fund VI. This equity will be leveraged to acquire more than $2 billion in properties. The fund invests in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. Cadim, a Montreal-based real estate advisor and portfolio manager, is a major shareholder of The Praedium Group. Cadim is a division of the Caisse de depot et placement du Quebec and a member of the Real Estate group of the Caisse. The Caisse is one of the world's 10 largest real estate managers among pension fund managers. For more information, please see www.praediumgroup.com.
