Waterfall Provides $127M Refinancing for Chesterbrook Office Campus

Rubenstein Partners has secured a $127 million refinancing for the Chesterbrook Office Campus, a 14-building, 1.1 million-square-foot office complex located in the King of Prussia/Wayne submarket outside Philadelphia.

The loan was provided by Waterfall Asset Management and includes both initial proceeds and future funding to support leasing activity and capital improvements across the campus.

CBRE arranged the financing on behalf of the borrower, with Ready Capital sourcing the opportunity.

1.1M SF Suburban Office Campus

Chesterbrook is a 1.1 million-square-foot office campus comprising 14 buildings, making it one of the largest suburban office properties in the greater Philadelphia region.

Rubenstein Partners acquired the campus in 2019 and has since invested more than $50 million in capital improvements aimed at repositioning the property.

Upgrades include the creation of “The Circuit,” a centralized amenity hub featuring:

• food hall and dining options
• meeting and collaboration spaces
• fitness center and wellness facilities
• outdoor gathering areas
• a 20,000-square-foot coworking suite.

The campus is located near Valley Forge with direct access to Route 202 and proximity to major highways and regional rail connections.

Financing Supports Leasing and Repositioning Strategy

The refinancing is structured to support Rubenstein’s ongoing business plan for the campus, including leasing initiatives and additional capital investment.

The loan also includes future funding designed to enhance tenant amenities and improve occupancy across the portfolio.

Recent leasing activity at the property includes a 36,000-square-foot lease signed by Arcfield, reflecting early traction in repositioning efforts.

Office Capital Markets Remain Selective

The transaction highlights continued lender interest in well-capitalized office assets with a clear value-add strategy, even as the broader office sector faces headwinds.

Suburban office campuses with strong amenity offerings and accessibility have become a focal point for repositioning strategies, particularly in markets like King of Prussia where tenant demand remains relatively stable compared to urban cores.

Lenders such as Waterfall are increasingly targeting opportunities where sponsors have already committed significant capital and demonstrated a clear path to stabilization.

Final Thoughts

The $127 million refinancing of Chesterbrook underscores how capital continues to flow to office assets that offer a compelling repositioning story and strong sponsorship.

While the office sector remains challenged, transactions like this suggest that well-located, amenitized suburban campuses with active investment strategies can still attract both debt and equity capital.

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