Wednesday, December 11, 2019

Philly Office Tower Secures $388M Refinancing

by John Jordan
The joint venture of Nightingale Properties and Wafra Capital Partners has secured a $388-million in refinancing deal for its 1500 Market St. office tower from JP Morgan.

Sources closed to the deal say the loan includes a large component for leasing costs and other property improvements.
1500 Market St. is a 1,759,410 square-foot, Class A office and retail asset in the Market Street West submarket.

1500 Market is located in the heart of Philadelphia’s CBD, and is the only office complex in Philadelphia CBD that features its own on-site subterranean parking garage, as well as underground access to Philadelphia’s best-in-class transportation network (SEPTA). The complex’s Centre Square offers numerous food options, retail offerings, conference facilities and a fitness center.
1500 Market consists of two towers, rising 36 floors in the East Tower, and 43 floors in the West Tower, which are connected by a three-story atrium and a 450-spot parking garage that offers direct access to Philadelphia’s regional rail and subway lines.

The property also is known for the Claus Oldenburg “Clothespin” sculpture that stands at its front plaza and, as a result, it is often referred to as the Clothespin building.

“The Philadelphia office market has seen immense momentum and rent growth over the past few years and the well capitalized Nightingale and Wafra partnership is in ideal position to capitalize on the favorable market dynamics,’ says Walker & Dunlop’s Rosenberg.

The Nightingale/WCP JV is currently the second-largest office landlord in Philadelphia, the largest privately-owned office landlord in Philadelphia, controlling approximately a quarter of the office inventory in the CBD. Wafra is heavily invested in Philadelphia as Nightingale’s capital partner at 1500 Market, 1635 Market, 1835 Market and 1500 Spring Garden. Outside of their joint venture with Wafra, affiliates of Nightingale hold JV interests in The Bellevue and 1418 Walnut in Philadelphia, where it also serves as the property manager.

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