HUD Renews for 94,350 SF in the Wanamaker Building

The aggregate value of the lease and the rental rate were undisclosed. A first-quarter report from the local office of CB Richard Ellis puts the average asking rental rate in that submarket at $24.50 per sf while acknowledging that discounting and attractive concession packages are being offered throughout the Center City office market.

HUD was represented in house, and Steve Gleason of locally based Amerimar and Tim Hutchens of CB Richard Ellis in Washington, DC represented the owner, Toronto-based IPC US REIT. IPC expects the lease to be in place for its full 10-year term, and, in a statement, Vinay Kapoor, CEO, calls HUD "a highly desirable tenant that will provide a very stable cash flow for the building for many years to come."

Lis S. Wigmore, IPC's COO, tells GlobeSt.com the renewal takes occupancy to above 90%. Of the building's 1.4 million sf, Lord & Taylor occupies approximately 400,000 sf and the remainder is office space.

Wigmore also reports recent leasing activity at United Plaza, the 20-story, 621,348-sf class A office building at 22.S. 17th St., in which IPC acquired an 89% stake from Oak Street Capital in mid-February this year. At the time, the building faced a potential lease-up of 100,000 sf. Wigmore says that since the acquisition, "45,000 sf, including one 31,000-sf floor of phantom space," has been leased. Dean Geis of NAI Geis Realty Group, is the leasing agent.

When IPC purchased United Plaza, Zach Vaughan, director of acquisitions, told GlobeSt.com it was seeking to sell up to a 50% interest in the building. Wigmore now says, "we have chosen not to pursue that strategy at this time, but it's not for a lack of interested potential partners."