The acquisition solidifies Brandywine as the lead landlord of Center City trophy space. The company owns One, Two and Three Logan Square as well as the Stock Exchange building, which sits across from Commerce Square. Brandywine also owns a parcel adjacent to the Independence Blue Cross tower in which it plans to construct a mixed-use building.
The Radnor, Pa., real estate investment trust will acquire the properties from Parkway Properties Inc.,
which is merging with Thomas Properties Group Inc. Brandywine (NYSE: BDN) had already owned a 25 percent in Commerce Square. Terms of the transaction call for Brandwine to buy a $238 million first mortgage and pay $69 million in cash.
Commerce Square, which was constructed by Thomas Properties Group between 1987 and 1992, is comprised of two 41-story office towers totaling 1.89 million square feet. The buildings sit on Market Street between 20th and 21st streets and are 88 percent leased.
In a statement, Jerry Sweeney, president and CEO of Brandywine noted that the company is buying the properties at a “significant discount to replacement cost.”
Real Estate, Economic Development
Source: Philadelphia Business journal
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