111-Acre Redevelopment Play Near Philly Comes With Catch

The buyer of a 111-acre site in a Philadelphia suburb could be up the creek with redevelopment ambitions.

Health care IT company Cerner Health Services, a subsidiary of tech giant Oracle, is looking to sell Malvern Green, the Philadelphia Business Journal reported. It’s unclear what Cerner is hoping to achieve in a sale of the office park, which is about a 45-minute drive from Philadelphia.

Malvern Green at 51 Valley Stream Parkway consists of three office buildings and a data center. The property spans 760,000 square feet and is occupied by Oracle, which is looking to sell it as part of an office consolidation stemming from its 2022 acquisition of Cerner for $28.3 billion.

Malvern Green was completed in 1999 after nearly 20 years of development. There’s enough space at the facility for 1,000 employees and multiple parking lots that can accommodate 1,800 vehicles.

The property is being marketed as an opportunity for mixed-use development, though the owner would need to undergo a rezoning process with East Whiteland Township. There’s just one other thing in the way of that, literally: Valley Creek, which runs through the property and divides it, limiting the redevelopment potential of the site.

JLL’s Brett Segal, Jim Galbally and Fran Coyne have the Malvern Green listing.

There have been several notable large-scale campus sales in the area recently as owners chart paths for properties with uncertain futures.

The 280,000-square-foot Lindenwood Corporate Center in Malvern was acquired this year by Time Equities for $23.1 million, representing a 42 percent drop from the sale price four years earlier.

In the fall, Brandywine Realty Trust sold the five-building Plymouth Meeting Executive Campus for $65.5 million to FLD Group and New York’s Adjmi family, landing far less than the estimated $100 million-plus Brandywine was expected to score when listing the property in 2023.

Abrams Realty & Development also purchased Exton Square Mall for $34.3 million, planning to redevelop the retail hub into a town center.

— Holden Walter-Warner