On behalf of a joint venture between Nightingale Properties and Wafra Capital Partners, Newmark Knight Frank and Walker & Dunlop have arranged $388 million in refinancing of 1500 Market Street, located in Philadelphia, PA. Sources say the loan includes a large component for leasing costs and further property improvements.
The Newmark Knight Frank team was led by Dustin Stolly and Jordan Roeschlaub, Vice Chairmen and Co-Heads of Debt & Structured Finance, along with Nick Scribani, Chris Kramer, Dylan Kane and John Gallagher.The Walker & Dunlop team was led by David Rosenberg and Mark Silbersher, Managing Directors. The loan was provided by JP Morgan.
The property is a 1,759,410 s/f, Class A office and retail asset in the Market Street West submarket. 1500 Market is located in the heart of Philadelphia’s CBD, and is the only office complex in Philadelphia CBD that features its own on-site subterranean parking garage, as well as underground access to Philadelphia’s transportation network (SEPTA).
1500 Market consists of two towers, rising 36 floors in the East Tower, and 43 floors in the West Tower, which are connected by a three-story atrium, 450-spot parking garage, and offers direct access to Philadelphia’s regional rail and subway lines. Centre Square offers a best-in-class amenity base with numerous food options, retail offerings, conference facilities, and a fitness center. The property also is known for the Claus Oldenburg “Clothespin” sculpture that stands at its front plaza and, as a result, it is often referred to as the Clothespin building.
“Following the completion of a comprehensive renovation 1500 Market represents the premier Class A office property in the Philadelphia CBD with unmatched access to transportation and a newly enhanced amenity base that is rapidly attracting tenants from across the market,” said Stolly.
“The Philadelphia office market has seen immense momentum and rent growth over the past few years and the well capitalized Nightingale and Wafra partnership is in ideal position to capitalize on the favorable market dynamics,” said Rosenberg.
The Nightingale/WCP JV is currently the second-largest office landlord in Philadelphia, the largest privately-owned office landlord in Philadelphia, controlling approximately a quarter of the office inventory in the CBD.
Wafra is heavily invested in Philadelphia as Nightingale’s Capital Partner at 1500 Market, 1635 Market, 1835 Market, and 1500 Spring Garden.
Outside of their JV with Wafra, affiliates of Nightingale hold JV interests in The Bellevue and 1418 Walnut in Philadelphia.