Dwindling concessions good sign for office market

by Natalie Kostelni

"A couple of trends emerged in the second quarter. In the Center City market, though overall rental rates are basically unchanged from the first quarter, concessions are starting to dwindle at well-positioned assets, and smaller tenants have started to renew and expand their footprints but doing so by relocating within their existing building to accommodate this organic growth. Both of those I take as positive news for the office market …

Bluestone Real Estate Capital, a real estate investment banker, lined up $5.5 million in permanent financing with Firstrust Bank for the 30 remaining units at Old City Lofts, a 90-unit loft-style residential development project in the Old City neighborhood of Philadelphia. The five-year loan in the mid-5 percent range was secured on behalf of 806 Capital, a real estate investment and development company with offices in Philadelphia and Chicago.

Old City Lofts involved the conversion of three historic buildings — 10 Letitia St., 313 Arch St. (the Hoopskirt Building) and 209 Cuthbert St. — into a 90-unit luxury residential loft project with four ground floor retail condos. As part of the initial conversion, 60 of the residential units and two of the retail units were marketed and sold as condos, with the remaining 30 residential and two retail condo units to be kept by the sponsors as income properties, according to Bluestone. To date, 66 percent of the condo units available have been sold …

Wharton Business Group bought 2329 Yellow Springs Road in Malvern for around $515,000 from Customers Bank, which held the loan and took the building back. Wharton Business Group will use the renovated historic building as its new offices and will be relocating from Exton.…

Advanced Therapy leased 5,200 square feet at 1998 Route 70 in Cherry Hill.…

Leap Academy University Charter School bought a 15,000-square-foot building at 528-532 Cooper St. in Camden for $375,000."

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