One Washington Square trades for $114M

Keystone Property Group has bolstered its real estate holdings in the historic district of Philadelphia and closed on buying One Washington Square for $114 million.

The 880,000-square-foot office building at 510-530 Walnut St. was sold by Rubenstein Partners, a Philadelphia real estate firm that bought the three-building complex in 2014.

Keystone, a Conshohocken, Pa., real estate company, already owns two other buildings in the neighborhood. It is part of a partnership that owns the Dow building, a nine-story, 400,000-square-foot office building at 100 Independence Mall West, as well as the Curtis, a six-story, 885,000-square-foot office building at Sixth and Walnut streets.

A series of office buildings in Old City have sold recently – highlighting the strength of investor interest in the East Market part of the city. The sale of One Washington continues that trend.

Vision for North Broad unveiled

Keystone's acquisition stems from a view that this part of the city is increasingly becoming a desirable place to work. It has an inventory of old, historic buildings that, because of their unique character, are attractive to companies and younger workers.

“We strongly believe that Washington Square and the surrounding neighborhoods are quickly becoming an epicenter for modern, forward-thinking workforces in search of a fresh, collaborative environment,” said Bill Glazer, president and CEO of Keystone, in a statement. “This area is indeed historic, but it’s also emerging as one of the city’s coolest hubs that blends culture, entertainment, dining, and business.”

As it has at the Curtis and Dow building, Keystone has plans for the building that looks to activate some spaces. It plans to convert the ground-floor and mezzanine office space at 530 Walnut St., which is now vacant, into retail. Spaces will range between 20,000 and 40,000 square feet.

There isn’t much retail along that section of Walnut Street and the space will serve not only tourists in the area but office workers, existing residents and new ones — 500 Walnut, a condominium tower, is under construction next door.

Many know One Washington Square by its former name of Penn Mutual Towers. Among its main tenants are 160over90, the American Board of Internal Medicine, Urban Engineers, and BDP International.

Source: Philadelphia Business Journal