by Brianna Crandall — September 7, 2016 — The recent acquisition of and plans for a historic landmark property with three office towers in Philadelphia are indicative of current real estate trends in city centers.
With one of the nation’s top “live, work, play” urban cores, downtown Philadelphia continues to attract office investment. On behalf of Rubenstein Partners, JLL’s Capital Markets experts recently announced the global professional real estate services and investment management firm completed the sale of One Washington Square, led by Managing Directors Doug Rodio and Jim Galbally and Senior Vice Presidents John Plower and Erin Miller. Keystone Property Group purchased the three office assets. Led by Senior Vice President Chad Orcutt, JLL also secured financing on behalf of Keystone to be used for the acquisition and repositioning of the building.
Plans include converting the ground-floor and mezzanine office space at 530 Walnut Street into retail, leveraging the neighborhood’s emerging pedestrian culture fueled by an influx of new businesses and residents.
One Washington Square contains “the perfect combination of stunning architectural style from the past with modern systems and amenities of the present,” according to the Web site. Designated as landmarks by the National Register of Historic Places, “the buildings offer spectacular city views of the Delaware River and adjacent parks that are unique for a Center City office building.” The original building was constructed in 1914, with additions in 1934 and 1972 and extensive renovations in 1991, 1997 and 2014.
Comprised of 510, 520 and 530 Walnut Street, One Washington Square totals 880,153 square feet. Both 530 and 520 Walnut Street are 20 stories tall, while 510 Walnut Street is 10 stories. Amenities include a fitness center with a locker room and showers, a daycare center, and 24-hour tenant access with manned security. One Washington Square is also located next to Philadelphia’s renowned Walnut Street retail corridor.
“With a limited supply of new product available and burgeoning residential and retail activity in submarkets like Washington Square and Independence Mall, investors are looking to adapt existing product to meet market demands,” said Rodio.
Orcutt added, “Keystone’s acquisition allows them to implement a value-add business plan and continue to capitalize on their ownership and experience in the Philadelphia market. With the continued demand for office space in Philadelphia we are seeing more institutional capital available for strong sponsors to fund value-add projects.”
“Our plans for the property include converting the ground-floor and mezzanine office space located at 530 Walnut Street into retail, leveraging the Washington Square neighborhood’s emerging pedestrian experience, fueled by an influx of new businesses and residents,” said Keystone Chief Investment Officer Chip Walters.
“One Washington Square is located adjacent to The Curtis, which we recently repositioned as a mixed-use property with ground-floor retail and 63 luxury apartments,” continued Walters. “It is also within blocks of 100 Independence Mall West, which we reimagined with an indoor-outdoor experience featuring the Independence Beer Garden and a La Colombe coffee café.”
