Philly Office Project Lands $187M Construction Loan

Rendering of 2222 Market St. Image courtesy of Meridian Capital Group

The developer behind a Class A office tower in Philadelphia has landed $187 million in financing for the ground-up development.

Philly-based development firm Parkway Corp. secured the construction and mezzanine financing and equity for a 19-story office building set to rise on Market Street in the Center City neighborhood, according to a press release announcing the transaction from Meridian Capital Group.

The built-to-suit tower is being constructed to achieve LEED Gold and Fitwel certifications and will encompass 305,000 square feet once completed.

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The senior loan was provided by balance sheet lenders and the mezzanine loan and equity were provided by ACORE. A Meridian Capital Group team of Senior Managing Directors Morris Betesh and Ronnie Levine, Director Phil Galligan, Senior Vice President Thomas Wayda and Vice President Omar Ferreira negotiated the financing on behalf of Parkway.

Global law firm Morgan, Lewis and Bockius LLP has signed on as the anchor tenant at the property, which will feature tenant amenities including a 3,500-square-foot fitness center, a 50-space underground parking garage, a penthouse and rooftop terrace. Designed by Gensler, the building will also feature high ceilings with floor-to-ceiling glass, multiple outdoor terraces, flexible workspace planning and a conference center.

Located in the heart of downtown at 2222 Market St., the building is expected to begin development this fall, according to Parkway.  The project is located near City Hall, the new Comcast headquarters on Arch Street and several public transit options.

Projects in the pipeline

Parkway is one of several developers building office projects in Philadelphia at the moment. Tower Investments is behind 400 N. Broad St., a 526,000-square-foot office redevelopment project located in Center City that is expected to be completed in January 2021. That project will transform the former Philadelphia Inquirer building into the new headquarters for the Philadelphia Police Department.

Nearby, in the University City neighborhood, a joint venture between the University Science Center, Ventas and Wexford Science & Technology is developing One uCity Square, a $280 million office and lab facility that broke ground earlier this year and is scheduled to be completed in December 2021. The project is the latest phase of the uCity Square Knowledge Community, a research, medical and life sciences campus.