KanAm has ownership in Mills Corp. shopping centers, and, early this year, following Mills requirement by the SEC to restate earnings back to first quarter 2000, two KanAm funds were frozen. In mid-February, a KanAm spokesman said that selling a portfolio was among its options for raising liquidity.

KanAm acquired the 20-story, 524,462-sf office asset at 1600 JFK Blvd. from Boston-based Leggat McCall in March 2005 for $95.3 million, or nearly $182 per sf. This sale takes the per-sf price tag to almost $208 per sf, giving KanAm a nearly $14-million gain. The building was constructed in 1964 and fully renovated between 1999 and 2001.

When KanAm acquired the asset, it was 90% leased. Current occupancy is unavailable, but among the tenants are Elsevier Inc., the law firm of Post & Schell and the Federal Insurance Co. Jeremy Gates, managing director of StratREAL, says in a statement that the tenant composition underwrites "60% of the income long term. The purchase suits our client's core-plus investment strategy where we can add value through leasing renewal and management to maximize the overall returns in the future."

According to the statement, Atlanta-based Carter & Associates has been appointed property and asset manager on behalf of StratREAL. A call to Carter was not returned by deadline. The average asking class A office rental rate in Center City's West Broad submarket is $26.19 per sf, according to a fourth-quarter 2005 report from the local office of Cushman & Wakefield.

Instant Insights /

UPDATE: KanAm Sells Four Penn Center for $109M

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