Philadelphia's 1700 Market Street Tower Sells for $143.5 Million

Philadelphia's 1700 Market Street Tower Sells for $143.5 Million

Commercial News » Commercial Real Estate Edition | By David Barley | September 26, 2011 12:20 PM ET

Today global real estate firm Jones Lang LaSalle announced the sale of 1700 Market Street, a Class A trophy office building located in Center City Philadelphia for $143.5 million.

The property traded on behalf of Pearlmark Real Estate Partners (formerly Transwestern Investment Company).  The firm, in conjunction with Meridian Capital, also arranged a senior mortgage and mezzanine financing of $123 million through UBS for the new buyer, a partnership formed by David Werner.

Leading the Jones Lang LaSalle team on this transaction was International Director Tom Beneville, Senior Vice President Jerry Kranzel and Vice President Mike Carpenter.  Senior Vice President Dustin Stolly arranged the financing along with Meridian Capital's Managing Director Ronnie Levine.

"This property offers an unparalleled combination of location, parking, and tenant amenities," said Beneville.  "In addition, it is one of the largest office property sales in almost four years and will set pricing expectations in Philadelphia's CBD for the next investment cycle. Philadelphia is an exceptionally strong market with a stable and growing economy. As a result, many buyers expressed interest in 1700 Market, including REITs, pension funds and international investors."

Added Stolly, "This true trophy quality asset proved compelling to a wide variety of lenders, including life companies, foreign and domestic banks and CMBS shops.  Competition for this prime lending assignment was exceptionally deep, and speaks to the continued health of the lending markets and desire to do business with a top tier sponsor."

The property lies in the heart of Philadelphia's central business district at the corner of 17th Street and Market.  The 841,172-square-foot building also includes an attached five-story, 761-car parking garage.

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