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This Week’s Philadelphia Deal Sheet: 2 Center City Office Properties Set To Hit The Market

The “extend-and-pretend” era could be coming to a close in the Philadelphia office sector with two hulking Center City properties set to hit the market.

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The distressed Centre Square office towers at 1500 Market St. are slated to go up for sale.

Centre Square, a distressed building at 1500 Market St. that has been in foreclosure proceedings for nearly two years, is “very likely” to be sold, the Philadelphia Business Journal reported, citing court documents filed by court-appointed receiver CBRE earlier this month. 

The two-tower office property is worth “substantially less” than the more than $375M Nightingale Properties and InterVest Capital Partners owe on their overdue loan, CBRE Senior Vice President Jerry Kranzel said in one of the filings.

The 27-story Ten Penn Center tower at 1801 Market St. will also be available for purchase soon. JLL is handling the listing.

“This is the first opportunity to acquire a 500k+ SF Market Street tower post-pandemic,” JLL Director Matt Blumberg said in a post on LinkedIn.

The 675K SF building’s upper floors would be a good candidate for residential conversion, according to the brokerage’s marketing materials.

PEOPLE

Philadelphia-based development firm Method Co. has hired two new team members: Chief Business Officer Dan Mullen and Chief Development Officer James Nozar.

“Both bring unparalleled expertise and a shared passion for creating spaces that inspire, connect, and elevate communities,” CEO Randall Cook said in a statement.

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CBRE Vice Chairman David Murphy has been appointed to the Penn State Real Estate Advisory Board at the university’s Smeal College of Business. He graduated from the school with a real estate degree in 1994.

SALES

Two multifamily properties sold in Trenton. The Kislak Co. coordinated the sales of the 24-unit Belleview Commons at 328 Bellevue Ave. and 33-unit Parkside Commons at 883-887 Parkside Ave. for roughly $2.8M and $3.3M, respectively.

Kislak's Barry Waisbrod partnered with Ten-X to create an online bid process for the properties on behalf of the sellers, Belleview Commons LLC and Parkside Commons LLC.

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Outrigger Industrial and its partners purchased a two-building, 8-acre industrial site in Bear, Delaware. This is the company’s first deal in the region. The 85K SF and 40K SF buildings near the corner of Wrangle Hill and Porter roads are occupied by one tenant.

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Vantage Commercial recently coordinated the sale of a 13K SF office building at 100 N. Black Horse Pike in Williamstown, New Jersey. The buyer immediately procured Metropolitan Dermatology as a new tenant with a 2,400 SF lease.

Vantage's Vince Ceroli and Emily Stein led the sale.

LEASES

American Overhead Door & Dock LLC has signed a lease for nearly 15K SF at 632 Grammes Lane in Allentown. Matt Macdonald and Jimmy Franchetti of Lee & Associates of Eastern Pennsylvania represented the landlord.

CONSTRUCTION AND DEVELOPMENT

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Jefferson Apartment Group's new 310-unit J Veridian apartment complex in Fort Washington

Jefferson Apartment Group and its equity partner CP Capital have completed construction of a 310-unit, five-building apartment community in Fort Washington. The J Veridian complex at 1125 Virginia Drive includes two pickleball courts, a dog park and a pool.

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Tenants have begun moving into the Alcott, a 329-unit mixed-use community at 416 Spring Garden St. in Northern Liberties. Southern Land Co. is the developer behind the complex, where monthly rents start at $1,918.

THIS AND THAT

Developers have revived plans for a suburban-style strip center at 2400 Washington Ave. in Point Breeze after the project was first proposed in 2008, Naked Philly reported.

Plans unveiled at a community meeting earlier this week call for an anchor supermarket, 30 apartments and several other retail and restaurant spaces. A rendering also includes a parking lot with 152 spots.

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A new trade group called the Construction Alliance of Pennsylvania has been formed. The organization will hold its first event Feb. 19 in Conshohocken.

“Implementing our strategic vision will enable us to meet the evolving needs of industry, promote development and address the workforce gap which continues to face the construction industry,” President and CEO Joe Perpiglia said in a statement.