"While we often look to acquire 100%-ownership," he says, "we also like to develop partnerships. In this case, several investors are showing a lot of interest in partnering with IPC in this property. Principally, we look for institutional investor types like ourselves." IPC invests exclusively in US real estate.

"Under our purchase agreement," Vaughan says, "we're unable to disclose the price until the closing, which is expected to take place in early March." An area broker tells GlobeSt.com on condition of anonymity that the price is "probably comparable to the asking price for Penn Mutual, or "in the range of approximately $135 per sf to $145 per sf."

The building, which was completed in 1976 and later upgraded, is 84% leased. Duane Morris, the locally based law firm recently relocated to 226,000 sf there under a 15-year lease agreement, "and certain additional leases are under discussion," Vaughan says. Dean Geis of NAI Geis Realty Group, which is headquartered in the building, is the leasing agent. Asking rental rate in the West of Broad submarket is just under $25 per sf, according to a Q4 2004 report from the local office of Grubb & Ellis.

IPC expects first-year distributable income of approximately $3.8 million from United Plaza on just the existing leases. The building is subject to a $70-million, 10-year first mortgage at an interest rate of 5.18%. Return on equity is expected to be 12%, again, taking only existing leases into consideration.

"This acquisition continues our focus on acquiring core office towers that are accretive to the REIT based on the existing income and provide a strong upside potential," says Vinay Kapoor, the REIT's president and CEO, in a statement. In this case, the upside is "the potential lease-up of 100,000 sf of vacant space," he adds. The property also "reinforces our position in the Philadelphia market," he notes. IPC also owns the Wanamker Building, which is a 1.4-million-sf office property at 100 Penn Square East, and 1650 Arch St., a 587,000-sf building at that address.