Thomas Beneville of the New York office of Chicago-based Jones Lang LaSalle tells GlobeSt.com that he along with Noble Carpenter, "have been hired to advise EOP on whether to sell or hold the portfolio." Monahan confirms that Jones Lang is developing an asking price.

Ideally, EOP would sell to a single buyer, Monahan says, adding, "it may be, however, that a single buyer would be interested only in the Center City buildings." Calling 100 Four Falls in Conshohocken a "marquee property," Monahan also says, "a buyer interested in Four Falls may not want any or all of the other suburban properties. So, there may be a menu of selling options."

Equity's accumulation of the portfolio, which began in 1996, was widely interpreted as a signal that the city's investment star was rising. Now local real estate executives contemplate whether or not the planned sale of the portfolio portends a reversal of fortune.

"Everyone's trying to connect the dots and link this to KOZ zones and the impact of new construction," Monahan says, referring to the controversial Keystone Opportunity Zone tax break granted for Cira Centre and being promoted for One Pennsylvania Plaza. He notes that EOP is also selling properties in Minneapolis, Cleveland and New Orleans, and says, "this move is probably a pure investment decision. Philadelphia's not a growth market; rental rates are flat; there's no increase in demand, and Equity is probably going to invest where there's a higher rate of return." By deadline, the spokesperson for EOP in Chicago had not returned GlobeSt.com's call.

The 36-story 681,000-sf 1601 Market St. was completed in 1970, acquired by EOP in 1996 and renovated 1989. Monahan says it is 99% leased, "but I have some vacancies coming up," he adds. The 32-story, 841,000-sf 1700 Market St. facility was built in 1969, acquired by EOP in 1997, and also renovated in 1989. It also is better-than-90% occupied. The base asking rental rate in both buildings is $22 per sf, according to Monahan.

EOP acquired the 11-building suburban portfolio from Oaks, PA-based Acorn Development Corp. in 1997. According to published reports, it paid $144.7 million. The jewel in this crown is 100 Four Falls Corporate Center, two six-story buildings totaling 254,000 sf. The rental rate is $26 per sf.

The other EOP properties are: Devon Square, a two-building, 136,000-sf complex in Wayne; Oak Hill Plaza, a four-story, 164,000-sf building in King of Prussia; Valley Square, a five-building, 293,800-sf complex on 26 acres in Blue Bell, and Walnut Hill Plaza, a four-story, 150,000-sf building in King of Prussia. Ina Sargen is Monahan's leasing counterpart for the suburban locations.

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Equity Office Puts Nearly 3M-SF Portfolio Up for Sale

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