In what is described as a "complex transaction," Shorenstein acquires the land from locally based-LP Associates and the leasehold interest from 1650 Market Associates in Philadelphia. TIAA, the mortgage and real estate division of New York-based Teachers Insurance Annuity Association College Retirement Equities Fund, remains the first mortgage holder.
The 58-story, 1.2-million-sf property was developed by Malvern, PA-based Rouse & Associates in 1989. Rouse & Associates has since become Liberty Property Trust when it became a REIT in 1994.
The building was developed as part of Liberty Place, which also includes 61-story One Liberty Place at 1650 Market St., the tallest building in Pennsylvania; a Westin Hotel; 145,000 sf of retail space, and a four-level garage in addition to Two Liberty Place, located at 1601 Chestnut St.
Two Liberty Place is fully leased to Insurance Co. of America. Area brokers estimate the tenant's rental rate at about $22 per sf, a discount for prime office space in the area west of Broad Street where the asking price for class-A office space is approximately $26 per sf.
Douglas Shorenstein, chairman and chief executive officer of Shorenstein, calls the property "a top-quality asset in a key strategic market." He welcomes the opportunity, he says in a statement, "to build an even stronger relationship with TIAA-CREF."
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