Philly’s 1700 Market St. Sells for $143.5M
- Sep 27, 2011
September 26, 2011
By Nicholas Ziegler, News Editor
In a $143.5 million deal, the Class A office building at Philadelphia’s 1700 Market St. was purchased by a partnership formed by David Werner, a private real estate investor.
The deal, transacted and arranged by Jones Lang LaSalle’s capital markets division, was traded on behalf of Pearlmark Real Estate Partners in conjunction with Meridian Capital. JLL also arranged $123 million in senior-mortgage and mezzanine financing through by UBS for the buyer.
According to JLL’s internal research, the Philadelphia office market continued to tighten as the second quarter of 2011 closed. The city was marked by a flight to quality properties, with Class A absorption at more than a positive 463,000 square feet as compared to Class B’s negative 22,000 square feet. In the central business district, where 1700 Market is located, the close of several other sales will likely lead to propelled rent growth over the near- and mid-term.
“This property offers an unparalleled combination of location, parking, and tenant amenities,” Tom Beneville, international director for Jones Lang LaSalle, said.
Further noting that the deal is one of the largest office-property sales in almost four years in Philadelphia’s central business district, Beneville was optimistic about the city’s downtown prospects. “Philadelphia is an exceptionally strong market with a stable and growing economy,” he said. “As a result, many buyers expressed interest in 1700 Market, including REITs, pension funds and international investors.”
The property sits at the corner of 17th and Market Streets. The 841,172-square-foot building also includes an attached five-story, 761-car parking garage.