The Center City office building that houses the headquarters
for Beneficial Bank and Five Below has been put on the market.
Now called 1818 Beneficial Bank Place but better known as
1818 Market St., Sovereign Capital Management Group Inc. has decided to sell
the property. The San Diego, Calif., acquired the office building when it
bought in 2012 Daymark Realty Advisors. When it was in that position, Sovereign
was able to give the building a sizable chunk of “rescue capital” when its
ownership was struggling. The investment gave Sovereign a majority interest in
the property, according to people familiar with the situation.
Cushman & Wakefield is marketing the structure.
The 37-story, 940,000-square-foot office building last
traded in 2006 for $153.8 million. That’s when NNN Realty Advisors of Santa
Ana, Calif., bought it. NNN Realty later became known as Daymark. During the
recession, Daymark and its tenant-in-common approach to buying real estate
began to flounder and made the company and its properties vulnerable.
The property took a beating when Delaware Investments moved
out of it and then Day & Zimmermann departed. It was difficult to attract
tenants, especially when Daymark had little money to support fit outs and take
care of deferred maintenance. Sovereign’s financial boost helped to
reinvigorate the building.
“They really turned it around and now we think it’s a good
time to sell,” said Bruce Coin of Sovereign. Coin declined to say how much the
building could trade for or to confirm how much interest the company has in the
ownership.
Sovereign formed a partnership with tenant-in-common
investors and began to fund renovations and upgrades. It was able to line up
Five Below as a tenant and later snagged Beneficial, which leases 95,000 square
feet. Other tenants followed and some existing firms expanded. The building is
now 91 percent occupied by 63 firms. A Marathon Grille in the building filed
for bankruptcy earlier this year
Source: Philadelphia
Business Journal
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