PHILADELPHIA-Locally based Sant Properties obtained $31.2 million in interim acquisition funding for its purchase of 1500 Walnut St., a 22-story office building with an aggregate of 317,628 sf. It acquired the building last September from Metro Development, which is also based here, for $35 million.

Jeff Heath, SVP in the local loan origination office of GMAC Commercial Mortgage Corp., arranged the transaction and GMACCM is the lender. Heath tells GlobeSt.com the funding is for a three-year term with two one-year extensions.

In addition to helping finance the acquisition, Heath says, "the loan provides for additional funding as the property completes its retenanting and capital campaigns. Sant is investing in some upgrades." Calls to Sant were not returned by deadline. Heath says the building is currently about 88% occupied.

It consists of two towers. The 22-story portion was constructed in 1926, and a 20-story companion was built in 1965. At the time of the sale to Sant, David Grasso, Metro's president, told GlobeSt.com the office rental rates in the class B building were "in the high teens" per sf. Striped Bass restaurant occupies the property's 12,000-sf ground-floor space.

Sant also acquired New Market Pavilion on Headhouse Square in 2005. It plans construction of a residential condominium on the parcel, which is located in the Society Hill neighborhood.