The Merion Building in King of Prussia has been acquired by Florida-based Onicx Group for $11.8 million, marking the real estate firm’s first investment in the Philadelphia region, writes Paul Schwedelson for the Philadelphia Business Journal.
Ilya Hvostikov, vice president of acquisitions for Onicx, called the building’s location on the northeast corner of South Gulph and South Henderson roads “phenomenal.”
“The fact that there is a lack of outpatient medical availability within the 3-mile radius of this property creates an opportunity to put some money into the building, rebrand, and be aggressive on our lease-up strategy,” he said.
The seller, American Healthcare REIT, acquired the Merion Building in 2015 for $18.5 million. At the time, the building was 98 percent occupied, but occupancy has since dropped to 75 percent, with Main Line Spine as the anchor tenant. This decrease in occupancy led to a price drop to $165 per square foot, or 64 percent of what the previous owner paid a decade ago.
The new owner plans to invest around $2 million in renovations that will include rebranding the building as Merion Medical Pavilion.
Read more about the Merion Building in the Philadelphia Business Journal.
