X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PHILADELPHIA-The New York-based owner of three Downtown buildings is looking for net lease deals on 600,000 sf of prime office space. The investment firm’s new broker says the buildings are currently leased far below market rates and most of the space will roll over within a few years.

Central business district properties the Architects Building, Lafayette Building and Lewis Tower are all owned by the same undisclosed New York-based investment firm, according to Ruth Barone, a senior vice president at Carlton Advisory Services, the real estate advisory firm charged with net leasing the properties. Barone is marketing the properties along with Carlton chairman Howard Michaels Michael Butz, also a senior vice president at the firm.

According to Michaels, the properties’ current tenants are holding leases “30% below market, and 50% to 70% of the leases in all of the buildings will roll over in three to four years,” making a net-lease deal an attractive investment for a long-term investor willing to ride out the current economic mudslide.

Barone tells GlobeSt.com that the buildings are not only leased at “five to six bucks below market, in the $10 to $13 range,” but that their quality and location are especially marketable.

“The properties are great,” Barone says. “They have tremendous upside, with potential as office and as residential space. And Philadelphia has undergone quite a renaissance.” She says any investor with a knowledge of Philadelphia’s real estate history will take notice.

The Architects Building is a 26-story, 185,000-sf art deco tower “right in center city,” Barone says. The Lafayette Building, “just across from Independence Hall and the Liberty Bell,” is an 11-story, 180,000-sf Federal-style structure and the Lewis Tower is another art deco property, 35 stories high and 185,000 sf, also in the city center.

Barone says the owner is looking for “a complete net lease. The tenant will have full control of the property. If they want to take over the top floors, that’s fine. If they want to make it into a hotel, that’s fine. All they have to do is pay the rent on a monthly basis to the owner.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.