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HARRISBURG, PA-In an effort to save money, Gov. Ed Rendell’s administration has hired Trammell Crow Co. to dispose of state office buildings in Philadelphia and Pittsburgh. The 18-story, 240,000-sf property at 400 N. Broad St. and Spring Garden Road in Philadelphia will be the first to go, Ed Myslewicz of the General Services Administration tells GlobeSt.com. “We’re still lining up the ducks for the Pittsburgh disposition, which is a little further down the road.”

Karen Daly-Smith, who heads the Philadelphia office of TCC, along with Bill Luft, SVP, are leading the Philadelphia sale effort and also seeking space to lease for the approximately 1,000 employees in 18 state agencies that now occupy the building. “We hope to house them in one Philadelphia location,” Myslewicz says. “There will be no change in the number of employees, and 11 potential sites for them have been identified.” A call to TCC was not returned by deadline.

The building was completed in 1958, according to Myslewicz and requires an estimated investment of about $40 million in short-term upgrades. “It’s in an excellent location in an area that is undergoing significant revitalization.” He suggests it could join Center City’s condo-conversion trend or meet Temple University’s growing demand for additional student housing.

There is no asking price. “We don’t bid against ourselves,” he says, “but we think it can command a considerable amount. According to our calculations, the sale could save the Commonwealth more than $17 million over the next five years and approximately $52 million over the next 20 years.”

The Pittsburgh asset is a 200,000-sf building at 300 Liberty Ave. It was built in 1955 and currently houses about 920 state workers. “This sale is in very preliminary stages,” says Myslewicz. “These are the two largest buildings in our fleet of state-owned office properties. We also own buildings in Reading and Scranton, but, at this time, we have no plans to sell them.”

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