Vanguard Group has sold a 323,000-square-foot Wayne office complex for $17 million while maintaining its operations at the property.

Malvern-based E. Kahn Development acquired the campus at 1041 West Valley Road. The transaction equates to approximately $53 per square foot.

However, Vanguard plans to lease back the entire property through at least 2028. Employees currently working there are expected to remain on-site.

The two-building complex is known as the Robert A. DiStefano Technology Center. Vanguard primarily uses the property for its information technology operations.

The 22-acre campus sits just south of Route 202 within Vanguard’s larger Wayne office presence. Both buildings share a common entrance and parking facilities.

For now, E. Kahn Development does not plan to redevelop the property. Instead, the acquisition provides a sizable office investment with an established tenant.

The transaction also continues a series of real estate changes for Vanguard across the Philadelphia suburbs.

Meanwhile, E. Kahn Development is pursuing an office conversion project nearby. The developer and its partners are transforming office space at 435 Devon Park Drive.

That project will convert approximately 145,000 square feet of office space into 162 apartments.

Although office conversions are gaining attention, the West Valley Road property will maintain its current use. Vanguard’s leaseback provides continued occupancy for the near term.

The sale highlights another strategy emerging within Greater Philadelphia’s evolving suburban office market. Companies can monetize owned real estate while maintaining operational control through leaseback agreements.

*Article courtesy of Philadelphia Business Journal

For more information about Philadelphia office space for sale or lease or about any other properties for sale or lease, please contact WCRE at 215-799-6900.