Penn Mutual consists of two joined structures that span from 508 to 530 Walnut St. across from Independence Square. To the west is Washington Square, and to the east is an adjacent, developable land parcel, "which we intend to actively market for sale," says Larry Botel, Broadway's COO and managing director. Broadway also purchased an adjacent, 600-car, underground garage.

Penn Mutual Life, a 20-story, neoclassical building, was completed in 1931 and joined in 1975 by a 22-story, then-controversial, concrete and glass, brutalist-style structure, designed by architect Mitchell Guirgola. The entire facility was extensively renovated in the 1990s.

"Broadway has spent a good deal of time looking for the right asset in Philadelphia," Botel says. "With a diverse economy and limited future supply, Philadelphia has weathered this cycle as well as any office market in the country," he adds, also noting that the Independence Square submarket "has evolved over the last decade into Philadelphia's most vibrant commercial and residential area."

The property was sold by a partnership of Dallas-based Lincoln Property and Whitehall. Lehman Brothers provided financing.

Broadway tapped the local office of Grubb & Ellis as exclusive leasing agent for Penn Mutual. Wayne L. Fisher, director and SVP, and James A. Egan, VP, will handle the marketing. The property is 85.9% occupied. Beneficial Savings Bank, American Board of Internal Medicine, Urban Engineers and Lippincott, Williams & Wilkins are among the major tenants. The average asking rental rate in the Independence submarket ranges between $20.45 per sf and $23 per sf.

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Broadway Partners Closes on $82M Penn Mutual Acquisition

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