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PHILADELPHIA-The Philadelphia Stock Exchange has inked a 15-year lease for a 26,000-sf build-to-suit on a 3.7-acre parcel in the Navy Yard Business Center. Malvern-based Liberty Property Trust will break ground for the facility next month.
Terms of the lease are undisclosed. The total project cost, including the technology required to operate the facility, is estimated at between $25 million and $30 million, a spokeswoman for the exchange tells GlobeSt.com.
The location is on League Island Boulevard across from the 70 acres Liberty is developing in a joint venture with locally based Synterra Partners. Much of the Navy Yard is a designated Keystone Opportunity Zone, and the spokeswoman confirms the exchange's contention that the KOZ designation, which provides tax abatements, should apply to tax revenues that occur from trades cleared through computers at the new center.
The Philadelphia Industrial Development Corp. owns the land. Peter Longstreth, PIDC president, declined to tell GlobeSt.com any details of the pending sale of the parcel, but adds, "we support Liberty and the project." Liberty referred to the Navy Yard build-to-suit, without identifying the tenant, during its second-quarter conference call. A call to Liberty for further details was not returned by deadline.
The exchange is currently headquartered at 1900 Market St. in an eight-story, 400,000-sf building designed for it by locally based Cope Linder Architects and completed in 1981. It will retain that space. It is the nation's third-largest options exchange, and, according to published reports, its options volume has doubled this year, requiring larger quarters and additional back-up recovery capabilities.
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