D2 Organization Recapitalizes 1000 Campus in Collegeville, PA

Iron Mountain vacates Collegeville office building, moves to Royersford

By Natalie Kostelni – Reporter, Philadelphia Business Journal

In 2007, data storage company Iron Mountain Inc. bought a 225,000-square-foot building for $12.3 million in Royersford with plans to eventually use the entire structure.

That day has finally arrived.

Since 1999, Iron Mountain has maintained its regional headquarters in 81,400 square feet at 1000 Campus Drive in Collegeville when Pitcairn Properties developed the building for its predecessor company, Pierce Leahy Corp. The company has decided to move forward with a long-standing plan to consolidate its operations into 1101 Enterprise Drive, about eight miles west along Route 422.

Iron Mountain had several years left on its lease at the Collegeville office building but struck a deal with its landlord, D2 Organization, to move out.

"D2 Organization has come to an agreement with Iron Mountain on a buyout of its lease at 1000 Campus Drive in Collegeville,” the company said in an emailed statement.

D2 Organization is now marketing the vacant building to tenants as well as prospective buyers. The Norristown-based real estate company bought the building in June 2017 for $13.26 million, according to Montgomery County property records.

“We don’t have an asking price on it yet but we’re going to be extremely aggressive,” said Scott Gabrielsen, a broker with CBRE Inc. who has the listing.

D2 will use the buyout proceeds toward building upgrades and incentives for new tenants if it decides to go that route. In addition to the existing building, there is a by-right ability to build another 100,000-square-foot property on the 18-acre site.

Iron Mountain bought the Royersford building from Wetherill Associates, a company involved in the aftermarket auto parts industry. The facility had served as Wetherill's corporate headquarters and distribution facility. For several years, Wetherill continued to lease a portion of the building and eventually relocated those operations. Boston-based Iron Mountain (NYSE: IRM), which had been occupying space in the building, always had plans to grow into it.

Source: https://www.bizjournals.com/philadelphia/news/2020/11/18/iron-mountain-vacates-collegeville.html