Keystone Property Group is developing a new, 427,333-square-foot, mixed-use, transit-oriented office tower at SORA West in Conshohocken, Pa.
AmerisourceBergen has signed on as the lone office tenant in the 12-story building and will relocate its corporate headquarters—currently housed in Chesterbrook, and a smaller Conshohocken office—to the building when it’s complete. Occupancy is expected to begin in 2020.
“The agreement with AmerisourceBergen allows us to develop the project in one phase,” Rich Gottlieb, Keystone Property Group’s president & COO, told Commercial Property Executive. “They will serve as an anchor tenant, which allows us to proceed with construction not just on the building, but the entirety of the SORA West development.”
The building will also include ground floor retail space and a bi-level below-grade parking garage. Keystone was named redeveloper of the site in 2013 after an RFP process administered by the Borough and the Montgomery County Redevelopment Authority.
Creating SORA West
SORA West, Keystone’s large-scale development centered around a vibrant plaza, will also include a 130-key hotel with numerous restaurants and a rooftop lounge; the existing 139-year-old Conshohocken Firehouse, which will be recreated as a gastropub with an indoor/outdoor experience; and a 1,200+-space parking structure to support the facilities.
“The SORA West development will serve as an anchor for the continued upgrade and development of downtown Conshohocken,” Gottlieb said. “While providing a new home for AmerisourceBergen, the project will also enable the construction of a public plaza for community gatherings and events, a hotel, restaurants and shops—all of which will contribute to the creation of a vibrant town square for the borough.”
A leading pharmaceutical distributor, AmerisourceBergen was recently ranked 12 on the annual Fortune 500 list, with more than $150 billion in annual revenue.
The property offers convenient connections to Eastern Pennsylvania, including Philadelphia, from the adjacent Conshohocken SEPTA train station. It’s also in close proximity to Routes 76 and 476. According to Gottlieb, downtown Conshohocken has all the components of a highly walkable, vibrant town center that both companies and their workers are seeking today.
“The borough offers unparalleled access with a commuter rail stop within just a short walk of SORA West, and a number of nearby highways that offer an easy ride to Philadelphia and other markets,” he said. “By creating a new public plaza and adding new shops, restaurants and other amenities, this development will create even more vibrancy both downtown and along the waterfront.”
David Binswanger, president & CEO of Binswanger Cos., represented AmerisourceBergen in the deal.
Conshohocken has been the center of activity lately. In May, Cabot Properties acquired a 174,400-square-foot warehouse facility for $16.4 million. In December, FD Stonewater paid $30.6 million to acquire River Park I, a 169,163-square-foot office building in the city.
Image courtesy of Keystone Property Group