By Paul Schwedelson – Reporter, Philadelphia Business Journal
A rendering shows BET Investments’ plan at 625 W. Ridge Pike in Conshohocken with a mix of up to 200 apartments and
20,000 to 30,000 square feet of retail space.
BET Investments has purchased a six-building corporate campus in Conshohocken for $17 million and plans to redevelop the property with a mix of apartments and retail space, while maintaining a portion of the existing offices.
The Dresher-based developer is planning to build up to 200 apartments and between 20,000 and 30,000 square feet of retail space on the 16-acre site at 625 W. Ridge Pike, known as Conshohocken Ridge Corporate Center.
The property is currently home to one 91,700-square-foot, four-story office building and five one-story office buildings, each roughly 25,000 square feet. Together, they total around 200,000 square feet and are 62% occupied. As part of the redevelopment, BET would tear down two or three one-story office buildings to make way for new uses.
BET closed on the property in August, buying it from Radnor-based EQT Exeter.
The property is just south of the intersection of I-476 and West Ridge Pike on the northern edge of Conshohocken. It’s also less than two miles from I-276 and three miles from I-76.
“As far as raw, centrally located real estate in the region, it’s probably one of the best pieces of real estate I’ve ever purchased,” BET Investments President Michael Markman said. “… The key for us is we look at things a lot differently than everyone else. This particular property is screaming out for a redevelopment.”
BET specializes in suburban mixed-use developments that incorporate apartments and retail space.
By redeveloping the site, Markman believes the remaining office space will become more popular. It’s a formula he has seen play out at the Promenade at Upper Dublin, which BET developed and debuted in 2020. That project has 402 apartments and 138,000 square feet of retail space. The firm also owns the adjacent Montgomery Corporate Center office building, which has seen increased leasing as a result.
For the Conshohocken redevelopment, Markman said he has had discussions with “best- in-class retailers” who may be interested in leasing space at the property. A rendering for the project shows a potential grocery store.
Plans have also been discussed with Plymouth Township, which will have to approve any residential development given the site is zoned for commercial. Markman doesn’t yet know how many office buildings would be torn down and how many apartment units would be built, given it partly depends on what the township will approve.
The best-case scenario for BET, Markman said, would be completing the approval process by the end of 2025 and beginning construction by early 2026. Construction is expected to take two years, meaning the project would be complete in 2028. Markman declined to share a cost estimate, citing fluctuating construction costs.
BET’s strategy for this site is similar to several of its other mixed-use developments and goes back to one of its key philosophies.
“If we can create an exciting environment, it helps our office, helps our retail, helps our apartments,” Markman said.
He noted apartments built next to food establishments tend to lease faster and at higher rents because residents are attracted to walkable amenities. Similarly, when offices are next to mixed-use environments, it’s easier for companies to recruit employees.
That potential at this site, which was built in 1985, made the acquisition a “no-brainer” for BET, Markman said.
BET paid $6.5 million less for the site than it traded for nearly 20 years prior. At that time in 2005, Trinity Capital Advisors paid $24.5 million for the property, the Business Journal previously reported. Seven years later, Trinity sold the portfolio to EQT Exeter. Property records do not show the 2012 sale price.
While BET is taking advantage of the depressed value of office properties, Markman said demand for office space has been better than expected even just in the months since acquiring the property. Though some of the office space would be demolished, prospective tenants could be attracted to the remaining office space given the development plans for the rest of the property.
Current office tenants include construction engineering firm AECOM and Blue Pearl Pet Hospital.