SSH Real Estate

The Commonwealth


Location

1201 Chestnut Street, Philadelphia, PA

Size

90,500 SF Class B office building

Purchase Date

August, 2007

Purchase Price

$8,600,000 ($95 per SF)

ACQUISITION

1201 Chestnut Street was acquired in a 50/50 partnership with 806 Capital, LLC, with a planned redevelopment to a residential or hotel use. The goal was to capitalize on the revitalization of the Chestnut Street corridor, which is taking place East of Broad Street, and the proximity to the new is expanded Pennsylvania Convention Center.

EXECUTION

The Commonwealth, 1201 Chestnut Street, a 15-story, 110,000 square foot historic office building was converted to apartments by SSH in 2011 at a cost of $17 Million. The property was capitalized in part through securing historic tax credits which were sold to Chevron and netted the partnership $5 million. Due to its outstanding location and high quality finishes, the building leased up rapidly, reaching 95% occupancy within a year of completion. The building has a total of 98 apartments, comprised of one and two bedroom units, as well as five ADA equipped suites. Residents began moving in during July 2011.

RESULTS

SSH’s Investment sales team marketed the building nationally in 2012 and completed a successful sale to Invesco, one of the largest real estate pension fund investors in the United States for a price of $30 Million. This was a complex partnership sale with the historic tax credit obligations assumed by the buyer.

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