Friday, April 18, 2014

Graham building at 15th and Chestnut in Center City purchased



The special servicer overseeing a defaulted loan on the Graham building in Center City has decided to take a deal to sell the note on the office property.

C-III Asset Management had an option to buy the note on the 240,634-square-foot building at 30 S. 15th St. and has exercised that option, according to Commercial Real Estate Direct and Trepp Inc. The building is also known as One Penn Square West.

In June 2006, an entity going under the name 30 S. 15th Associates bought the 25-story building for $35 million. That group consisted of a partnership of Grasso Holdings of Philadelphia and the Union Labor Life Insurance Co.-USA Realty Fund of Washington, D.C. The union fund served as the general partner, according to Pennsylvania Secretary of State records.

How much C-III paid for the building is uncertain. A $28.3 million loan, which was originated in 2006, was outstanding on the building, according to Trepp data. An appraisal was done last June that valued the property at $20.2 million.

The loan was transferred to a special servicer last July. Foreclosure proceedings were then initiated and it was placed in receivership. Two offers were reportedly made on the note.

The building was constructed in 1985 and its anchor tenant is the Graham Co., a Philadelphia insurance brokerage.

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