Liberty, Comcast JV Developing Philadelphia Tower - Analyst Blog

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Liberty Property Trust ( LPT ) and Comcast Corporation ( CMCSA ) have started the development of the Comcast Innovation & Technology Center after accomplishing the joint venture deals and the associated agreements for the construction. Comcast has an 80% stake in this JV while the rest is owned by Liberty.

This 59-story tower in Philadelphia would offer 1.334 million square feet of rentable office space as well as a 222-room Four Seasons Hotel. Notably, Comcast has inked a lease deal for around 74% of the office space (982,275 square feet) for a term of 20 years.

This project is estimated to involve costs of approximately $933 million, excluding tenant-financed interior improvements. Of this amount, $40 million is coming as grants from the Commonwealth of Pennsylvania and the City of Philadelphia as funding for infrastructure development and public spaces.

Around $185 million is expected to be Liberty's investment in this project and it will act as the manager of the joint venture. The general contractor for the project is L.F. Driscoll and this project is expected to be accomplished in first-quarter 2018.

Going forward, we believe that the repositioning efforts by Liberty through strategic acquisitions and JV investments would help the company ride on the growth trajectory. Specifically, thousands of jobs and billions of dollars of economic activity are expected to be created in Philadelphia for this project.  

In June, the company bought 5 Class A industrial properties (spanning 705,365 square feet in total) in Durham, NC. The buildings, known as Imperial Center, were acquired for $44 million. (Read: Liberty Property Buys Assets; Boosts NC Industrial Portfolio ).

This PA-based real estate investment trust (REIT) - Liberty Property - currently has a Zacks Rank #3 (Hold). However, investors interested in the REIT industry may consider stocks like Chatham Lodging Trust ( CLDT ) and Terreno Realty Corp. ( TRNO ). Both the stocks carry a Zacks Rank #1 (Strong Buy).


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: CMCSA , LPT , TRNO , CLDT

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