Wednesday, February 15, 2017

Rubenstein Partners Acquires 60% of The Wanamaker Bldg in Market Street East

TEIR REIT, Inc. has sold its 60-percent interest in the Wanamaker Building at 100 Penn Sq. E in Philadelphia, PA through a reported divestiture of an interest in the entity that indirectly owns the asset for $114 million, or about $139 per square foot, to Rubenstein Partners LP.

The partial interest transfer included the assumption of existing debt secured by the property and held by Tier REIT, which in a Q3-2016 public filing reported the balance due in 2023 with a stated interest rate of 3.83 percent. The balance was not disclosed.

This historic property was built in 1902 with a renovation completed in 1991. It totals almost 1.37 million square feet, including 954,000 square feet of office space and 435,000 square feet of retail space, located on 2.7 acres in the Market Street East submarket. Macy's utilizes the entire retail portion with 10 years remaining on its master lease. Other notable tenants in the office portion, stabilized at around 97 percent occupancy, include The Children’s Hospital of Philadelphia and the U.S. Department of Housing and Urban Development.

Tier REIT, which at one time had listed the entire asset for sale with an asking price of $210 million, is focusing on seven targeted growth markets, and Philadelphia is not one of them. Headquartered in Philadelphia, Rubenstein owns several area assets.

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