1515 Market, also known as Three Penn Center, has been sold for $85M, reports The Inquirer. Accesso Partners LLC purchased the property, which overlooks City Hall/Dilworth Plaza and houses Temple University's Center City campus, from Winthrop Realty Trust. We'd love to make a Trading Places reference right now, but that was Louis Winthorpe III— damn. With the sale now announced, is this the first of a flurry of Philadelphia office building sales?
JLL brokered the deal and Executive Vice President Doug Rodio mentioned that there will be a "string" of office buildings sold around the Philadelphia area before the year is done, according to that same report in The Inquirer.
The Philadelphia Business Journal reported that Temple's long-term lease in the building, combined with it's proximity to City Hall and the new Dilworth Park were huge assets to consider during the sale. Estimates in back in Sept. had the value at $85M — right on the money.
Here's more from that report:
"[1515 Market] stands 20 stories, totals 502,000 square feet and could trade for as high as $85 million, according to one estimate. By comparison, its neighbor across the plaza, Two Penn Center, sold for about $66 million in 2012. Two Penn is also 20 stories and totals 505,000 square feet. It was roughly 82 percent occupied when it sold." Rodio said 1515 Market is currently 87% occupied, with tenants such as the aforementioned Temple, Heffler accounting firm and Citizens Bank and FirstTrust branches. Back to Temple for a second, a $2.6M project is slated for completion in "early 2015" that includes exterior improvements and a Barnes & Noble outpost with a Starbucks and outdoor seating.
Could you imagine if they actually get this whole pedestrian plaza thing from 17th Street through Dilworth Park and onto Market East right? It would only further the renaissance around the central business district.