In late 2010 The Davis Companies acquired a first mortgage loan in maturity default through a relationship with the lender. The loan was collateralized by two Class B office buildings in Wayne, PA totaling 272,310 RSF.
The Davis Companies was able to acquire the loan at 73% of face value and at a significant discount to replacement cost. Through a negotiated deed in lieu of foreclosure, The Davis Companies gained title to the properties. The site is very well-located, adjacent to the super regional King of Prussia Mall, with good visibility off Route 202 in one of the best suburban office markets in Philadelphia.
Just prior to acquisition, the two largest tenants, occupying 89% of the property, vacated the majority of their space as a result of corporate consolidations.
