PHILADELPHIA — Jones Lang LaSalle’s Capital Markets team has closed the $143.5 million sale of 1700 Market Street, a Class A trophy office building located in Center City Philadelphia. The 841,172-square-foot building, situated in the heart of Philadelphia’s central business district at the corner of 17th Street and Market, also includes an attached five-story, 761-car parking garage.
Pearlmark Real Estate Partners, formerly Transwestern Investment Company, sold the building to a partnership formed by David Werner. Jones Lang LaSalle, in conjunction with Meridian Capital, also arranged a senior mortgage and mezzanine financing of $123 million through UBS for the new buyer.
Jones Lang LaSalle’s International Director Tom Beneville, Senior Vice President Jerry Kranzel and Vice President Mike Carpenter led the team on this deal. Senior Vice President Dustin Stolly arranged the financing along with Meridian Capital’s Managing Director Ronnie Levine.
“This is one of the largest office property sales in almost 4 years and will set pricing expectations in Philadelphia's CBD for the next investment cycle,” said Beneville. “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.”
“This trophy quality asset proved compelling to a wide variety of lenders, including life companies, foreign and domestic banks and CMBS shops,” added Stolly. “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.”
— Dan Marcec