The Opportunity

Keystone acquired this user-owned complex from Ericsson, Inc., a world leading telecom supplier, in Warrendale, Pennsylvania, which is located 15 miles from Pittsburgh. This area is one of the fastest growing areas of residential, retail and office construction in the state. At the time of acquisition, the occupancy rate for the park was 74% which was below the market occupancy rate.

The Strategy & Execution

Our strategy was to acquire the property at a below market occupancy rate of 74% and create significant value by redeveloping it, leasing a significant portion back to Ericsson and aggressively marketing the remaining space to new large credit tenants.

We rebranded the campus and focused on boosting occupancy and net operating income. We cut operating expenses 33% by re-bidding service contracts and establishing a baseline for utility expenses. Lastly, we obtained land approvals to build up to an additional 150,000 rentable square feet.

The Result

Keystone leased up the building to 100% occupancy within three months of ownership. Heinz, an existing tenant, leased an additional 20,000 SF. New tenants included Federated Investors at 93,000 SF and Exco North Energy at 56,018 SF. Also, Ericsson determined they no longer needed their leased space. We negotiated a buyout with Ericsson and leased their space to Westinghouse Electric Company for fifteen years.

To find out more about Keystone, contact our team today.