A partnership between Nightingale Properties and Carlton Associates bought 1835 Market St. in Center City for $100 million and it’s the latest office building to trade in Philadelphia amid a flurry of deals.
The 29-story property has 660,343 square feet of office space, 26,160 square feet of retail and a three-story, underground parking garage with 176 spaces. The building, which was once known as 11 Penn Center, was constructed in 1986. Klehr Harrison is one of its anchor tenants. Its office space is just 75 percent occupied and 159,182 square feet is vacant. CalSTRS was the seller.
The partnership was attracted to the value-add nature of the property, said Doug Rodio, an investment broker with JLL who arranged the transaction. It has bought other buildings in Philadelphia with the same strategy of investing funds to improve them.
This is the third building in Philadelphia that Nightingale of New York has taken an ownership stake. It is involved in 1500 Spring Garden with Carlton and 1700 Market St. withDavid Werner, a New York real estate investor.
The investment scene in Philadelphia has heated up. Other office properties that have recently sold or are under agreement include 1515 Market St., 1818 Market St. and Seven Penn Center and those that are up for sale include 1650 Arch St., United Plaza, 3535 Market St. and 2.0 University Place. More office buildings are expected to hit the market by year end and early next year.
Read the full article at Philadelphia Business Journal.