PHILADELPHIA — SSH Real Estate and Young Capital, in partnership with the real estate arm of Quilvest Private Equity, have announced a $100 million recapitalization of the 880,000-square-foot 123 South Broad Street and Witherspoon Building complex in Philadelphia’s central business district.
Currently, the property is 95 percent leased, with Wells Fargo as the anchor tenant renting 225,000 square feet of space across multiple floors. The complex was previously split into two condominium units with separate ownership. Unit 1 comprised of 255,000 square feet from the basement through the fifth floor of both 123 South Broad Street and the Witherspoon Building. Unit 2 comprised floors six through 30 of 123 South Broad Street and six through 11 of the Witherspoon Building, totaling 625,000 square feet.
SSH Real Estate and Young Capital partnership acquired Unit 1 earlier this year, and with Quilvest’s investment in Unit 2, the 725,000-square-foot 123 South Broad office building will be under common ownership for the first time in 20 years. As part of the transaction, the partnership secured a loan facility from Guggenheim Commercial Real Estate Finance, which includes capital to complete leasing and capital improvements for the building.
HFF served as the broker for the financing. Additionally, as part of the new transaction, SSH Real Estate and Young Capital acquired complete ownership of the 155,00-square-foot Witherspoon Building. The partnership is evaluating the building for a residential apartment conversion.