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East Coast Players Joint Venture on Philadelphia Project

PHILADELPHIA-Multi-employer development partners invest in $75-million office rehabilitation. Space is expected to lease for about $27 per sf.

By Mike Cleary | Updated on June 13, 2002

PHILADELPHIA-Leggat McCall Properties has brought in a new joint venture partner for its project at 4 Penn Center in Downtown Philadelphia, GlobeSt.com has learned from insider sources. Multi-Employer Development Partners LP has invested an undisclosed amount estimated to be worth $75 to $80 million.

Leggat acquired the vacant 520,000-sf office building last December with plans to give it a first-class rehabilitation, lease it up and ultimately sell it. Leggat expects a 16% to 20% return, sources familiar with the deal say. Until then, Leggat will seek top class A rents, about $27 per sf, and hopes to move a tenant in by August 2001.

The renovation, which involves asbestos removal, began last month and is expected to be finished next July. One requirement of the deal is that union members do the work, one source says.

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