This Week's Philadelphia Deal Sheet
Thomas Jefferson University and Jefferson Health have announced who will be the new CEO of the sister entities following Stephen Klasko's retirement at the end of last year.
Joseph Cacchione, who most recently served as executive vice president of Clinical and Network Services for national nonprofit healthcare system Ascension, will assume the mantle of CEO effective Sept. 6, Jefferson announced Monday. He has big shoes to fill, as Klasko oversaw a massive expansion of both the university and the hospital system during his eight years at the helm.
Ascension is a $28B organization with 165,000 employees across 145 hospitals and more than 2,600 care sites in 19 states and Washington, D.C. In Cacchione's time as a national-level executive, he led its centralization from a collection of separate operating companies into one unified organization. Integrating disparate operations will be an important skill as Jefferson eyes continued expansion, even after acquiring Einstein Healthcare Network in October.
SALES
Local commercial developer and investor Maguire Hayden has sold a 155K SF lab facility in Wayne, part of the King of Prussia submarket and one of the Philadelphia region's most popular nodes for office and life sciences tenants. JLL Capital Markets Senior Managing Directors Jim Galbally and Brett Segal led the team representing Maguire Hayden in the deal.
The building, which sits on 10 acres of land at 466 Devon Park Drive, is fully leased on a long-term basis to contract research and development organization Charles River Laboratories. Houston-based CRE giant Hines acquired the property for $57M, the Philadelphia Business Journal reports.
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National hospitality REIT Pebblebrook Hotel Trust closed the sale of the Sofitel Philadelphia at Rittenhouse Square for $80M on Wednesday. The 306-room hotel at 120 South 17th St. had a net operating income of $3.1M for the 12 months before this July, and it was sold to an unidentified buyer. Pebblebrook announced it will use the proceeds from the sale to help reduce debt accrued from recent acquisitions.
Sentinel Real Estate Corp. has acquired two downtown multifamily properties from a joint venture of Barings Real Estate and MRP Realty for what the Philadelphia Business Journal reports is a combined price of $68.5M. The two properties, the 69-unit Broderick at 400 Walnut St. in Society Hill and the 144-unit Republic at 1930 Chestnut St. in Rittenhouse Square, are New York-based Sentinel's first acquisitions within Philly city limits. The company added its fourth property in the Philly suburbs in June with the purchase of the newly constructed Madison Lansdale Station complex in Lansdale for $61M.
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Singaporean-run United Hampshire US REIT purchased a 400K SF power retail center in the far Montgomery County suburb of Pottstown for nearly $86M from Paramount Realty Services. Upland Square is anchored by a 76K SF Giant supermarket and shadow-anchored by a 147K SF Target, though an AMC Theatre multiplex and the center's outparcels were not included in the transaction. Senior Managing Director Brad Nathanson of Marcus & Millichap affiliate Institutional Property Advisors represented Paramount and procured United Hampshire as a buyer.
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Ambrosia Real Estate has sold inpatient addiction treatment facility Pinelands Recovery Center of Medford, a three-building, 40K SF complex on 45 acres at 283 Old Marlton Pike, to a private investor. Ambrosia was represented by a Wolf Commercial Real Estate team led by Managing Partner Jason Wolf and Executive Vice President Evan Zweben, who said in a release the unnamed buyer was attracted to the operator's long-term lease and the plentiful vacant land adjacent to the building for potential expansion.
PARTNERSHIPS
Local brokerage firms Rittenhouse Realty Advisors and CVA Commercial Group have announced the formation of a partnership to represent local government entities and institutions in the acquisition and disposition of properties.
Led by co-founder Vince Jolly, CVA is a certified Minority Business Enterprise that has already built a specialization in real estate deals with government and nonprofit institutions. Though CVA and RRA are both based locally, they hope to have a national reach through Global Real Estate Advisors, a nationwide partnership of midsized firms that RRA helped to form earlier this year to serve private capital clients searching for deals in multiple markets at once.
PEOPLE
The Philadelphia chapter of the Urban Land Institute has named Kevin Moran as its new executive director, a position held by Laura Slutsky for the last six years. Moran served as senior manager and director for ULI Philadelphia since 2019, and before that as executive director of the Northern Liberties Business Improvement District and Fairmount Community Development Corp. Moran is also an adjunct faculty member at Temple University’s Tyler School of Art and Architecture.
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CenterSquare Investment Management has promoted Scott Crowe to the role of president from that of chief investment strategist, a position he held for the past seven years. Crowe will continue to report to CenterSquare CEO and Chief Investment Officer Todd Briddell, but his new role is meant to reflect the part he has played in the growth of the Plymouth Meeting-based real estate investment firm.
