Pennsylvania Office High-Rise Secures $68M Refi
A limited partnership refinanced an existing loan on the class-A office tower with an existing balance of $44 million.
A Pennsylvania limited partnership known as Crown Two Penn Center Associates has closed the $67.9 million refinance of Two Penn Center Plaza, a 502,000-square-foot 20-story class-A office tower located at 1500 John F. Kennedy Blvd. in Center City.
The property had an existing 10-year loan, according to industry sources, with a $44 million remaining balance. The limited partnership pulled cash out of the transaction. The remaining terms of the capital transaction were not disclosed.
Herzliya, Israel-based real estate investor Optibase announced the refinancing transaction. The firm owns a 22.16% interest in the property, and collected $5 million from the transaction as part of the total proceeds. The limited partnership will distribute $2 million of the total $5 million in the coming weeks. Optibase focused on fixed-income real estate transactions, and currently holds interests in properties in Switzerland, Texas, Philadelphia, Miami and Chicago.
The refi is a standout traditional office deal in a market that has become a stomping ground for medical office activity. Last year, BG Capital sold a medical office campus in Philadelphia’s Port Richmond neighborhood to New Jersey-based the Hampshire Cos. and its international investment partner Arbah Capital for $53.1 million. The three-building property includes a 200,000-square-foot, multi-tenant office building, located at 2301 E. Allegheny Ave., a renovated 30,000-square-foot, single-tenant medical office building, and a new 16,000-square-foot, ground-up recreational facility for a medical office tenant.
Earlier this year, a joint-venture partnership between Joss Realty Partners, SSH, Young Capital and National Real Estate Advisors LLC secured $220 million on behalf of a client to develop a build-to-suit, specialty care pavilion and ambulatory clinic in Philadelphia, PA. The Jefferson Health clinic will total 452,000-square-foot and stand 19 stories with a three-story underground garage, access to loading docks and parking for 320 vehicles.