By Tudor Scolca
Chelsea/Village Associates has purchased a 126,689-square-foot office tower in downtown Philadelphia. A joint venture of Alterra Property Group and Stockton Real Estate Advisors sold the property for $31.5 million. A JLL Capital Markets team worked on behalf of Chelsea/Village Associates, also arranging acquisition financing with KeyBank, which provided a five-year loan.
The 15-story tower is located at 1760 Market St. in the city’s central business district. A plethora of shops, upscale restaurants and hotels are within walking distance. Metro and light rail stations are also nearby. The Philadelphia International Airport is about half an hour’s drive away.
Originally constructed in 1983, the Philadelphia office property received cosmetic renovations in 1991 and 2016, with extensive upgrades to the lobby, entry way, elevators, water pumps, a fire/life safety system and a gas-fired emergency generator. Leases range from 1,016 square feet of divisible space to 6,147 square feet of contiguous space. The mix of tenants includes Stockton Real Estate Advisors, Suburban Real Estate Group, Sprint, The Philadelphia Trust and others. The property is 16.5 percent vacant, according to Yardi Matrix,
“The size of the asset coupled with the location resulted in an extremely competitive bid process, resulting in offers from a diverse group of investors, including local, regional and international buyers,” said James Galbally, managing director at JLL, in a prepared statement.
Galbally, along with Senior Vice President Brett Grifo led the JLL brokerage team, while Executive Vice President Chad Orcutt worked to obtain the KeyBank loan.
Image courtesy of Yardi Matrix