The owner of Spring Mill Campus is exploring a sale or recapitalization after significantly improving occupancy at the Conshohocken office complex.
Alliance HP acquired the 508,500-square-foot property for $81 million in 2019.
At the time, Spring Mill Campus was approximately 65% occupied. Since then, occupancy has increased to 86%.
That improvement represents a notable turnaround during a challenging period for the office market.
Alliance originally expected to hold the property for three to five years. However, the pandemic disrupted those plans and reshaped office investment conditions.
Instead, the company continued leasing the campus while maintaining its relationship with the property’s lender.
Now, Alliance is seeking either a buyer or additional investment to continue strengthening the property.
The 33-acre campus at 1100 East Hector Street includes seven connected office buildings. Additionally, the property offers 1,642 parking spaces.
Spring Mill Campus also sits one block from SEPTA’s Spring Mill Regional Rail station. Consequently, tenants have convenient access to Philadelphia and surrounding communities.
The potential transaction comes as investors reconsider opportunities within the suburban office market.
In recent years, investment capital has often targeted distressed office properties. Meanwhile, stabilized and improving assets have faced a different financing environment.
Spring Mill’s rising occupancy could help distinguish the property from struggling office assets.
Furthermore, the campus demonstrates how leasing momentum can improve the outlook for well-located suburban properties.
Whether through new ownership or additional investment, the next phase will focus on closing the remaining occupancy gap.
For the Greater Philadelphia office market, Spring Mill offers another example of a suburban campus gaining tenants despite broader industry challenges.
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