Accesso Partners Acquires Penn Center Bldg
A joint venture between Winthrop Realty Trust and Stockton Real Estate Advisors sold the office buildingat 1515 Market St. in Philadelphia, PA to Accesso Partners LLC for $85 million, or about $169 per square foot.
Originally built in 1960, the 20-story, 502,213-square-foot, 4-Star office tower sits on nine-tenths of an acre in the Market Street West submarket of Philadelphia, in Penn Center. It is located across the street from Dilworth Park, which recently underwent a $70 million upgrade, and the SEPTA subway station can be accessed by the building’s lobby.
Renovated in 2007, the asset was 87 percent leased at the time of sale, anchored by Temple University’s Center City campus, along with CPAs Heffler Radetich & Saitta, law firms Sweeney & Sheehan, Simon & Simon, Rocco Law, and also the Commonwealth of Pennsylvania.
Boston-based real estate investment trust Winthrop (NYSE: FUR) expects to realize net proceeds from the sale, after repaying third-party mortgage loan, costs, and closing adjustments, of approximately $40.8 million. Stockton acquired the asset in January 2007 for $76 million, according to CoStar data. See CoStar COMPS #2517037.
“We’re delighted to be entering the Philadelphia market with the acquisition of one of the city’s premier office buildings,” said Ariel Bentata, co-founder and managing partner, investments for Hallendale Beach, FL-based Accesso Partners, formerly known as Beacon Investment Properties. “Education, healthcare and professional services are strong industries in Philadelphia and 1515 Market is represented in each sector. Temple University, the 128,000-square-foot anchor tenant, recently extended the lease on its Center City campus through 2022.”
Susan Hill, senior managing director of HFF in Houston arranged acquisition financing in the amount of $63.75 million, provided by JPMorgan Chase Bank.
Douglas Rodio, James Galbally, and John Plower with JLL represented the sellers. The buyer handled the sale in-house.
Please see CoStar COMPS #3177682 for additional information on this transaction.