Thanks to a nearly $100 million deal, the historic building at 801 Market has a new owner.
A $96 million financing package was secured in mid-September for developers Cohen Properties and Taconic Capital Advisors to purchase a portion of 801 Market Street. Cohen Properties, which already owns floors seven through 13, is now part-owner of floors three through six.
JLL Capital Markets secured the financial package for the developers. The $96 million will be used to both buy the lower half of the building and rehab the 695,130-square-foot office tower.
The purchase comes as the Market East corridor undergoes a major rennaisance while offering the most affordable retail rents in the country. In addition to PREIT’s redevelopment of the Gallery Mall into the Fashion District, construction on the $600 million East Market mixed-use development is well underway, with big-name tenants like signed on or already moved in.
The 801 Market building dates back to 1931, when it was built for $10 million as a Strawbridge and Clothier department store. Developer PREIT still owns the first and second floors of the building, which will become part of its $365 million development of the Fashion District of Philadelphia next door.
Meanwhile, the 801 Market office building is already leased by the Philadelphia Media Network and the General Services Administration’s (GSA) Health and Human Services (HHS), which signed a 10-year lease in August 2016.