Liberty Property Trust & Synterra Partners Break Ground On Two Flex Buildings in the Navy Yard Commerce Center

PHILADELPHIA, Jan. 3, 2011 /PRNewswire/ -- Liberty Property Trust (NYSE: LRY), which owns and manages more than 16 million square feet of office, flex and industrial space in the Delaware Valley, broke ground today on two of three planned flex buildings in The Navy Yard Commerce Center – and announced the signing of the project's first tenant.

"It's great to start 2011 with this groundbreaking," said John Gattuso, Liberty Property Trust Senior Vice President and Region Director, at today's ceremony. "These two buildings will bring highly sought flex space to the City of Philadelphia. Already, prior to groundbreaking, more than 20% of the project has been leased.  This is a very exciting time as leading companies are actively considering The Navy Yard as a location for their future growth. We expect this momentum to accelerate as the local economy moves more clearly into recovery."

The first two buildings will total 103,137 square feet of space. The facility at 4020 S. 26th Street will offer 51,560 square feet while its sister building at 4050 S. 26th Street will provide 51,577 square feet. A third building, which Liberty plans to develop once leasing of the first two is well underway, will expand the capacity by an additional 82,863 square feet.

The project, estimated at approximately $16 million, will utilize approximately $12.3 million in funding from the City of Philadelphia through the Federal Recovery Zone Facility Bonds (RZ-FBs).  The RZ-FBs, a tax-exempt private activity bond created specifically by the American Recovery and Reinvestment Act (ARRA), were awarded by the City with the cooperation of the Commonwealth and PIDC.  An additional $3.7 million of ARRA funds will be utilized by Liberty for infrastructure improvement at the nearby Navy Yard Corporate Center.

"The expansion of The Philadelphia Navy Yard as a growing center of business has been a smart investment for the city, developers and the companies that do business there. These two, new buildings will help the city to attract businesses that are new to the region or expanding within the city," said Mayor Michael A. Nutter. "I would like to thank PIDC, Liberty Property Trust and Synterra Partners for investing in the Naval Yard."

The Fretz Corporation, one of the leading appliance wholesale distributors in the nation, has signed an agreement for 22,391 square feet of space, taking nearly half of the 4050 S. 26th Street building. The tenant, with showrooms in both Philadelphia and Columbia, Maryland, represents several luxury appliance manufacturers including Sub-Zero and Wolf throughout Pennsylvania, New Jersey, Delaware, Maryland and Virginia.

Tom Dolan, President of The Fretz Corporation stated, "We are extremely excited to have Liberty Property Trust build a new facility for the Company's corporate offices and our world class Sub-Zero / Wolf showroom in one of Philadelphia's most historic landmark locations. Fretz has been a Philadelphia based company for over 78 years and it is personally gratifying to know the roots of our business will remain safely planted in this great city for many years to come."

Last month Liberty signed a lease with McGrann Corporation for the last 3,500 square feet available in the LEED Platinum certified One Crescent Drive. The deal brought Liberty's Navy Yard portfolio to 100% occupancy, which includes the LEED Gold certified Three Crescent Drive, the LEED Silver Certified Tasty Baking facility, the AppTec Laboratory Services Building (the first flex building Liberty developed in the park) and a data center at 4775 League Island Blvd.

About RZ-FBs

RZ-FBs are issued in Federal Recovery Zones, which are designated as:

1. Any area designated by the issuer as having significant poverty, unemployment, rate of home foreclosures, or general distress;
2. Any area designated by the issuers as economically distressed by reason of the closure or realignment of a military installation pursuant to the Defense Base Closure and Realignment Act of 1990; and
3. Any area for which a designation as an Empowerment Zone or Renewal Community is in effect.

RZ-FBs are a new, tax-exempt private activity bond created specifically by ARRA to be distributed by municipalities for business development activities. The ARRA funding authorizes the City of Philadelphia to assign an issuing authority to issue tax-exempt bonds for private activity use. The Administration has partnered with the Philadelphia Authority for Industrial Development (PAID) to structure and issue the RZ-FBs on behalf of Liberty Property Trust. The Federal government is awarding an available $15 billion nationwide in RZ-FBs.

Liberty and LEED®/Sustainable Development

Liberty has invested more than $1 billion in USGBC LEED registered and/or certified sustainable developments. The company has been recognized for its commitment to sustainable design and its positive impact on its tenants' employees, the environment and its communities. Liberty has received numerous awards for its approach and commitment to sustainability, including the National Association of Industrial and Office Properties (NAIOP) 2008 Developer of the Year Award, the CoreNet Global 2008 Sustainability Leadership Award for Design & Development and the 2007 NAIOP Green Development Award. The company was also honored with the U.S. Green Building Council's 2006 LEED Corporate Leadership Award.

About Liberty Property Trust

Headquartered in Malvern, PA, Liberty is dedicated to enhancing people's lives through extraordinary work environments. The real estate investment trust (REIT) serves customers in the United States and United Kingdom through the development, acquisition, ownership and management of superior office and industrial properties.  Liberty's 80 million square foot portfolio offers exceptional locations and flexible design to more than 2,000 tenants at approximately 750 office, distribution and light manufacturing facilities. For more information, visit www.libertyproperty.com.

About Synterra

Synterra Partners is a local real estate development company founded in 1996. The firm has an extensive portfolio of projects that include hotels and resorts, commercial and retail developments both domestic and international. Synterra Partners has earned its extraordinary reputation by working successfully with public and private organizations to create innovative strategies for complex development projects.

SOURCE Liberty Property Trust