Thursday, May 14, 2026
Wednesday, May 13, 2026
Prologis sells Tastykake's headquarters in Philadelphia
By Jonathan Lehrfeld CoStar News
The Philadelphia headquarters and central production plant of snack maker Tastykake has been offloaded in a deal that comes as the market's industrial real estate sector shows signs of improvement.
San Francisco-based Prologis sold the South Philly facility at 4300 S. 26th St., the real estate investment trust confirmed with CoStar News via email. Prologis did not comment further on the deal.
An affiliate of Salt Lake City-based Bridge Investment Group bought the nearly 346,000-square-foot complex last month for $87 million, according to a city property record and CoStar data. Bridge did not respond to email and phone requests for comment.
Plans for the main hub of Tastykake — known for its creme-filled cupcakes and other pastries — remain to be seen. Neither the baked good group nor its Georgia-based parent company, Flowers Foods, immediately responded to a request to comment from CoStar News.
The Tastykake transaction "reflected premium pricing for infill industrial assets with strong functional utility, strategic access to regional transportation networks, and long‑term relevance for distribution or manufacturing users," CoStar wrote in its latest Philadelphia industrial report.
The deal also underscores how Philadelphia's industrial market "has found its footing in early 2026 after a historically weak 2025, when demand fell to levels not seen in decades."
The cross-dock manufacturing and distribution facility was constructed in 2009 as a build-to-suit for Tastykake. The company had nearly 10 years remaining on its 26-year lease when JLL began marketing the property for sale in the fall.
Founded as Tasty Baking Co. in 1914, the company announced in 2010 it was selling its former bakery property, corporate offices and distribution center in Philadelphia for $6 million in connection with its relocation to its current address. It then merged with Flowers Foods in 2011.
Prologis acquired the building in 2020 through its merger with Liberty Property Trust.
Monday, May 11, 2026
Thursday, May 7, 2026
Tuesday, April 28, 2026
WSFS Financial Corp. renews Office Lease in Philadelphia
By Katie Burke CoStar News
The parent company of WSFS Bank signed a deal to keep its headquarters at a Philadelphia office tower in a welcome boost for the property since it had its valuation cut by more than 35% and was last year sent to receivership.
Wilmington, Delaware-based WSFS Financial Corp. earlier this month signed the long-term extension agreement for its 96,800-square-foot hub at 1818 Market St. where it is the tower's namesake and largest occupant.
The nearly 1 million-square-foot tower is one of many scattered across Philadelphia's urban core that have faced increasing financial distress over the past several years as a product of significant occupancy losses, a bleak leasing climate and declining valuations that have complicated refinancing efforts.
Landlord Shorenstein Properties acquired the Center City property more than a decade ago for $184.75 million, much of which was financed through a $174 million loan issued through Bank of America. The San Francisco-based real estate firm then pumped nearly $95 million into renovations, tenant improvements and leasing expenses, efforts that helped boost the tower's appraisal value beyond $282 million and helped Shorenstein secure a roughly $223 million refinancing package issued by Barclays Capital Real Estate in early 2021.
Fast forward a couple of years, however, and Shorenstein — similar to other landlords across the United States — faced a troublesome combination of fewer tenants and smaller spatial requirements that sent vacancy rates soaring to unprecedented highs.
The 1818 Market tower was more than 80% occupied in 2021, according to CMBS reports, a figure that fell in the following years before settling at less than 70% by March 2025. The refinancing loan was underwritten on the assumption that the property would generate about $16 million of annual net cash flow, but the declining occupancy rate meant the WSFS-anchored building only pulled in about $12.7 million in 2024.
By last summer, Shorenstein owed $239.5 million on the commercial mortgage-backed securities loan backed by the tower, according to Philadelphia court documents. The loan is still performing but remains held with a special servicer.
Center City presence
While financial turbulence has pushed some tenants across the U.S. to look for more stable alternatives, WSFS' decision to double down on its existing space points to companies' increasing willingness to commit to their physical real estate.
The WSFS Financial subsidiary, one of the nation's oldest banks, inherited the 1818 Market St. space in early 2019 as part of its acquisition of Beneficial Bancorp, the Philadelphia-based financial holding company for which the tower was previously named.
Yet WSFS has quickly settled in, growing its regional workforce to more than 250 employees and, in 2024, signing on for additional space on the ground floor to house a banking office and a publicly accessible lounge space to host meetings and events.
The bank's renewal "underscores our unwavering commitment to Philadelphia, a city that has been integral to our growth and success as an organization." WSFS CEO Rodger Levenson said in a statement, adding that Philadelphia is more than "just a key market for WSFS."
