December 20, 2019— Bridge Investment Group LLC’s (Bridge) subsidiary Bridge Office Fund Manager (Bridge Office) announced today the acquisition of Bay Colony, a 249,522-square-foot, four-building, Class-A office campus located at 565, 575, 585 & 595 East Swedesford Road in Wayne, Pa. Situated in the heart of Chester County, the property provides convenient access to the region’s primary roadways (Interstate 76, the Pennsylvania Turnpike, Routes 202 and 422) as well as premier live-work-play environments at nearby King of Prussia Mall and Town Center.
Originally built between 1984 and 1988, all four buildings at Bay Colony underwent a best-in-class modernization program in 2017, totaling over $7 million in renovations and improvements. The recently upgraded amenities include a full-service café, a conference center, a newly renovated outdoor patio amenity with seating off the café and a turf game area. The improvements also included completion of a central campus entry that connects the four buildings and provides direct, lighted access to and from Route 202. Bridge plans to invest nearly $5 million over the next three years toward base building updates as well as selective spec suites and additional amenities that will continue to position Bay Colony as an appealing option for employers seeking to retain and attract talent from the area’s vibrant workforce.
The Swedesford Road Corridor has undergone a robust redevelopment in recent years driven in large part to a growing concentration of award-winning restaurants, entertainment and retail amenities less than two miles from the property at the King of Prussia Mall and Town Center. However, the submarket has also seen a recent surge in new multifamily development, with more than 2,900 Class-A residential units delivering. The area also benefits from its proximity to Philadelphia’s Main Line, a series of affluent, suburban communities known for its highly educated workforce, expansive transportation network, access to regional markets and overall quality of life. As of 2019, 45 percent of the 56,970-person population located within 3 miles of Bay Colony held a bachelor’s degree or higher, with an average household income of $151,073. Commuters are within 20 miles of Philadelphia’s Central Business District and approximately 28 miles from Philadelphia International Airport. These factors, coupled with the area’s convenient highway access, have made the Swedesford Road corridor one of the highest performing, most sought-after micro-markets in all of the Philadelphia metro.
“With its unrivaled access to highly amenitized places where today’s workforce wants to live and play, Bay Colony presents the ideal investment opportunity for Bridge to enter the Philadelphia market and deploy our proven blueprint in creating next-generation office environments,” said Brian Tretinik, Managing Director of acquisitions for Bridge Investment Group. “With a healthy tenant roster and close proximity to top professional talent, the campus is poised for considerable growth in the next decade and beyond.”
Considered a fast-rising player in the U.S. commercial office market, Bridge has been increasingly active in the market this year. This latest purchase by Bridge Office marks the company’s entrance in Pennsylvania and follows recent acquisitions across the country, including Phoenix Gateway Tower in Phoenix, AZ, and Museum Tower, Offices of Flagler Station and Offices of Doral Square in Miami, FL.
Bridge Commercial Real Estate LLC, the operating company for Bridge Office, will oversee all leasing, property management and repositioning work at Bay Colony.
Bay Colony is 91 percent occupied. Available office space ranges from 1,800 square feet to 11,700 square feet. Leasing will be led by James Dugan and Patrick Knowlan with Newmark Knight Frank.