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Debt & Equity

Tail wags the dog as JLL secures $96M loan for Taconic, Cohen partnership

JLL’s Capital Markets experts announced the firm secured $96 million on behalf of a partnership between Taconic Capital Advisors and Cohen Equities.

The financing package, which was provided by Deutsche Bank and Square Mile, will be used for the acquisition and rehabilitation of 801 Market Street, a 695,130 s/f office tower in Philadelphia’s Market East submarket.

Executive Vice President Adam Schwartz, Managing Directors Aaron Appel and Jonathan Schwartz and Senior Vice President Chad Orcutt led the JLL team on the deal.

“This was a unique opportunity to provide a progressive package to finance the entire acquisition of the stabilized portion of an asset, while at the same time refinancing the value-add portion. It was an easy story to sell, but a very tough one to execute,” said Schwartz. Matt Legge, who led the financing and acquisition on behalf of Cohen, emphasized the impact that JLL had on the entire transaction, saying,

“Typically, from a structuring and feasibility perspective, the acquisition leads and the financing follows. In this case that was inverted, as the financing structure that our JLL team devised was what kicked the whole process off and compelled us to pursue the transaction in the first place. ”

Using the financing, the sponsors purchased the office component of the building on floors three through six as part of a deal that assembled the entire office portion of the building. They previously acquired floors seven through 13 in November 2016.

Currently, floors one and two are being redeveloped as part of Fashion District Philadelphia, a development that will span three city blocks and feature high-end retail and entertainment concepts.
801 Market Street provides direct access to regional rail – SEPTA, PATCO and BSL – and the city’s bus system. The building is within walking distance of Independence Hall, the Liberty Bell and more than $1 billion of retail, multifamily and office development.

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