NKF Capital Markets Arranges $355M Refinancing for Three Office Buildings in Philadelphia
PHILADELPHIA — NKF Capital Markets has arranged two loans totaling $355 million to refinance three office buildings in Philadelphia’s Central Business District.
The portfolio includes 1500 Spring Garden, 1635 Market Street and 1835 Market Street.
Dustin Stolly, Jordan Roeschlaub, Nick Scribani and Chris Kramer of NKF Capital Markets arranged the loans on behalf of the borrowers, Nightingale Properties and Wafra Capital Partners. TPG Real Estate Finance Trust provided the financing for 1500 Spring Garden, and KKR & Co. LP provided the loan for 1635 and 1835 Market Street.
Nightingale acquired the 1.1 million-square-foot 1500 Spring Garden in 2013. Upon acquisition, the company implemented a $10 million capital improvement program to upgrade the lobby, elevators, restrooms and newly leased spaces. Nearly one-third of the property is leased to data center tenants.
Nightingale acquired 1635 and 1835 Market Street in 2014. The buildings total 286,000 square feet and 800,000 square feet, respectively.
Since acquisition, Nightingale has invested more than $15 million in capital improvements at 1635 Market Street, signing more than 220,000 square feet of new leases. Over the past three years, the company has signed more than 275,000 square feet of new and renewed leases at 1835 Market Street, taking the occupancy from 65 percent to 82 percent.
“Market West is widely recognized as the preferred submarket for office users in Philadelphia, and Nightingale is among the largest privately owned office landlords in the city,” said Roeschlaub. “This made for a best-in-class combination of asset, market and sponsorship for the capital marketplace to pursue.”
Headquartered in New York City, Nightingale’s portfolio currently spans across 22 states with more than 11 million square feet of office and retail commercial space under management.
— Camren Skelton