123 South Broad Street
123 South Broad, Philadelphia, PA
626,594 SF Class B office building
$57,700,000 ($92 per SF)
SSH Real Estate targeted 123 South Broad Street – a 626,594 SF Class B office building on the corner of Broad & Walnut Streets. We recognized the opportunity to add value by leasing the 125,000 square feet of vacant space. With our successful leasing at 230 South Broad Street one block away and the strength of the South Broad submarket, we were confident that our team would quickly lease the vacant space.
The owner, American Financial Realty Trust, was in the process of being acquired by Gramercy Capital Corp., when the building was offered. With only sixty days until the completion of the merger, it was critical to the seller that the buyer selected would perform under a very tight time frame. SSH Real Estate and Young Capital were chosen as the buyer based upon the strength of our offer, extensive prior due diligence, understanding of the operation of the building, knowledge of the leasing market, and track record of closing past transactions.
Since acquisition we have signed over 75,000 square feet of new leases. We also completed a lease renewal with one of our largest tenants the law firm Montgomery McCracken Walker & Rhoads, LLP, which occupies 111,000 square feet.
Within nine (9) months, we increased occupancy from 78% to 89%, and in November 2010 completed a $48.5 million, 10-year fixed rate refinance at attractive terms. The building continues to perform well.Download Case Study PDF