PMA Companies: PMA Companies

• Assumable non-recourse debt in place with only 13% down payment required
• Only a 5% balloon eliminating any re-financing risk
• 21 years remaining on Absolute NNN lease - no landlord maintenance responsibilities
• 84% return to equity in Years 1-5 through amortization
• Class A construction type office building
• Affluent location with an average household income of $159,637 within a one-mile radius
• Philadelphia MSA – Sixth largest metropolitan area in the US and home to over 6 million residents

The subject property is a single-tenant office building located in Blue Bell, Pennsylvania, part of the Philadelphia MSA. The property consists of one 4-story Class A construction type office building comprised of 109,812 square feet of Net Rentable Area located on 7 acres of land. There is on-site surface parking containing approximately 450 spaces. The property, built in 1986, houses the corporate headquarters for PMA Companies, one of the nation’s top providers of workers’ compensation and third-party administration services.

The lease is guaranteed by Pennsylvania Manufacturers’ Association Insurance Company (PMA), an A2 rated company by Moody’s (which is the equivalent to a Standard & Poor’s A rating). PMA is part of the Old Republic General Insurance Group, the largest business segment within Old Republic International (ORI)-one of the nation’s 50 largest publicly held insurance organizations with a substantial interest in major segments of the industry. ORI is primarily a commercial lines underwriter, serving many of America’s leading industrial and financial services companies as valued customers.

The property is leased for 22 years (21 years remaining) with 1.75% annual rental increases. The lease is absolute net with no landlord maintenance responsibilities. This offering allows an investor to acquire the property for 13% cash down by assuming the existing, non-recourse financing in place. The subject property is a zero cash flow offering. The rent, including all scheduled increases for the next 21 years, match the monthly debt service from the existing financing. The debt amortizes to just $15 / square foot, or 5% of the original balloon significantly reducing any refinancing risk.

PA Broker of Record
Mark Taylor
License: RM423708