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Just over a year after putting Five Tower Bridge up for sale and then pulling it off of the market, a partnership that owns the office building in West Conshohocken has decided to make another go of it.

MIM-Hayden Real Estate Fund I, which is a partnership comprised of Hayden Real Estate Investments and Miller Investment Management, both of Conshohocken, bought the eight-story, 223,736-square-foot office building at 300 Barr Harbor Drive at the end of 2011 for around $70 million. Though the partnership received some attractive offers when it put the property up for sale in mid-2015, they weren’t as good as desired, said Tony Hayden Jr., a principal with Maguire Hayden Real Estate Investment Co.

“They were much better than we paid but we knew that the land was out there … so it didn’t make sense to settle,” Hayden said.

There is a parcel adjacent to the office building the partnership received approval to build a companion office structure that would total up to 220,782 square feet and front the Schuylkill River. It would stand eight stories and is designed to sit atop a three-story parking garage.

The partnership also said it figured once one of Five Tower’s anchor tenants settled in its expanded space, it would make the property a more desirable asset for investors.

Oracle Corp. renewed and expanded in 2015 in the building for a total of 84,000 square feet until 2026 and at $33 a square foot. The deal solidified Five Tower’s overall occupancy on a long-term basis. Aside from Oracle, Five Tower is 96 percent leased to Hirtle Callaghan & Co., BTG International Inc., Wells Fargo and KRT Capital Partners.

“It was better to let Oracle get moved into their expansion space, which they are in now, and we received approval on the land beside our building to construct an identical building to Five Tower, which is probably the biggest value-add that was created by waiting,” Hayden said.

Landlord of Five Tower makes tough call on tenant
Some regard West Conshohocken as a more attractive submarket than its neighbor across the river that is more susceptible to congestion.

Though that may be the case, Conshohocken is more walkable, but the overall office market there is tight. The submarket totals 3.19 million square feet and has a vacancy rate of 5.48 percent with rents running around $33.43 a square foot, according to SSH Real Estate year-end data.

“You are buying one of, if not the best building in the submarket with the ability to build a new building,” said Jim Galbally, an investment broker with JLL who has the listing along with Brett Grifo, John Plower and Joe Garibaldi.

Five Tower has competition on two fronts.

There are a handful of other developers seeking to get a new office building out of the ground in Conshohocken and they’re chasing a limited number of tenants to get it kicked off.

Five Tower also joins several other office buildings up for sale in the western suburbs. For example: Cedar Run Corporate Center, a 59,000-squrae-foot building at 901 E. 8th Ave. in King of Prussia; Triad Building, a redeveloped 180,000-square-foot building at 2200 Renaissance Blvd.; and 480, 500 and 656-675 E. Swedesford Road, which totals 260,000 square feet.

Five Tower was constructed by Oliver Tyrone Pulver in 2001 as part of the real estate company’s Tower Bridge complex it has developed in West Conshohocken and Conshohocken.

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