August 20, 2004

Industry Wrap Ups - Real Estate
Natalie Kostelni

Lower Potts calling

Heritage Commercial Group is chipping away at its Sunnybrook Village mixed-use project off High Street in Lower Pottsgrove, having just about 25 percent of its office properties leased.

The Furlong, Bucks County company has so far constructed four buildings totaling 41,000 square feet, said Paul Wolfson, a vice president at NAI Geis Realty, who is handling the leasing there. An additional 50,000 square feet of office and professional space and another office building totaling 16,000 square feet is set to break ground in the next few months. That building will be constructed on speculation. In all, 10 office buildings are planned for the 52-acre complex.

Wolfson contends there's a market for new office space in the far reaches of western Montgomery County where there's few alternatives. "It's the only new construction out there," he said. "It's the newest thing to be built in 15 years."

While new product has its appeal, Wolfson is also banking on the population growth expected for that part of the county to drum up demand for the space. Already, housing developments have cropped up as people move farther west to seek out affordable starter homes. County data predicts the area will continue to grow during the next two decades.

"This is a no-brainer," Wolfson said, adding that he has had transplants from King of Prussia and Blue Bell coming to Sunnybrook. Rents are around $15 a square foot.

Aside from office space, Sunnybrook also includes 110 townhouses, of which 55 have been built and sold.

Natalie Kostelni can be reached at nkostelni@bizjournals.com or 215-238-5139.