Jones Lang LaSalle Americas, Inc. (“JLL”), as exclusive representative of the owner, is pleased to present for sale 466 Devon Park Drive in Wayne, Pennsylvania (the “Property”). The Property is a 100% leased lab facility at a mission critical location in the Route 202 Corridor with over 14 years of remaining lease term. Located in the highly desirable King of Prussia / Wayne submarket, the Property is strategically positioned along the Route 202 corridor and features superior local and regional access to the area’s busiest roadways including Route 422, Route 202, The Pennsylvania Turnpike (I-276), Interstate 76 and Interstate 476.
IMPRESSIVE IN-PLACE CASH FLOW WITH 14 YEARS OF LEASE TERM
- The Property is currently leased to Charles Rivers Laboratories (NYSE: CRL) through June 2036, which demonstrates a strong commitment to both the location and the facility. The impressive in-place cash flow includes contractual 3.0% annual rental increases providing an investor with consistent net operating income growth. The Property benefits from a Good Manufacturing Practice (GMP) designation from the FDA allowing the tenant to provide a commercialized product or conduct clinical trials.
STRONG TENANT PROFILE
- Founded in 1947, Charles Rivers Laboratories (NYSE: CRL) is an early stage contract research company providing drug discovery, non-clinical development and safety testing services to clients. CRL works with leading pharmaceutical, biotechnology, agrochemical, government and academic organizations around the world.
CORE ASSET WITH SIGNIFICANT CAPITAL INVESTMENT
- Both the existing owner and Tenant have invested significant capital to upgrade and fit-out this core building to the highest standard. CRL has invested approximately $8 million in improvements to customize the facility in addition to the wide range of specialized equipment located at the Property. The existing owner has invested $3.4 million to upgrade the façade, replace the roof, install LED lighting, enhance the HVAC systems chillers, and created an amenity center including a fitness, cafe and conference facilities.
STRATEGICALLY POSITIONED WITHIN PHILADELPHIA’S LIFE SCIENCES HUB
- Greater Philadelphia’s large concentration of leading academic institutions and pharmaceutical companies has created a central life sciences hub in the United States. 466 Devon Park Drive is situated along the Route 202 Corridor which is home to more than 37 percent of Philadelphia’s lab space. Considering the close proximity to New York’s financial markets and Washington DC’s regulatory center, more than 1,200 life science companies are based in the Philadelphia area ranging from the industry’s largest multinational companies to the sector’s fastest growing firms. More than 30 cell and gene therapy development companies and roughly 87 percent of all pharmaceutical and biotech companies in the U.S. have offices in Greater Philadelphia.
DIRECT ACCESS TO A DEEP AND SKILLED LABOR POOL OF WELL-EDUCATED PROFESSIONALS
- Philadelphia has the largest concentration of healthcare in the country with over 120 hospitals, 200 pharmaceutical and biotechnology firms and 135 medical manufacturers throughout the region. In addition to the large number of medical schools, multiple universities in the region also offer advanced degrees in biological sciences providing a deep labor pool.