Largest 2009 Office Sale in Western PA closes

McKnight Pays $89.5M for Cranberry Woods Office Bldgs.

Deal Marks Largest Purchase in Pittsburgh Region in 2009

By Andrew Deichler (CoStar)

August 11, 2009

In the largest office sale in Western Pennsylvania this year, McKnight Realty Partners has acquired four buildings in the Cranberry Woods office park for $89.5 million, or $198 per square foot. In an effort to re-balance its investment portfolio, Multi-Employer Property Trust (MEPT) sold the property at auction. McKnight used a 1031 exchange, which also involved 16 Pittsburgh-area Wendy's restaurants.

Located at 500-800 Cranberry Woods Drive in Cranberry Township, the four-building office campus totals 452,964 square feet. The buildings are 99 percent occupied by such tenants as Verizon Wireless, Westinghouse Electric Co. and McKesson. Nicholas Matt with HFF (Holliday Fenoglio Fowler L.P.) represented the seller. First Commonwealth and First Merit Bank provided financing for the project. Loan values were not disclosed.

Editiorial: While there remains evidence that the economy has not completed a full recovery, Commercial Real Estate in Pittsburgh remains a solid economic performer. This transaction may prove to have broader implications in the continued development, office rates, and occupancy levels in the Pittsburgh and specifically Cranberry area markets. The record price paid for this investment can be viewed as a positive endorsement for the continued need of Class A office space in the North market and Pittsburgh.

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