Douglas Veasey, Stockton's chief investment officer, declined to disclose the price or identify the seller. However, in a statement, the Hague, Netherlands-based Wereldhave NV, a global property investor, says it sold the building for $76 million USD, which translates to just north of $146 per sf.
According to the statement, the disposition is part of Wereldhave's policy of replacing older properties with new investments, and it is concentrating its US portfolio around Washington, DC and Texas. Philadelphia public records identify the owner as 1515 Market Street Associates, an affiliate of Purchase, NY-based West World Holdings, which acquired it in late 1989. Veasey says no brokers were involved in the sales transaction.
The building was completed in 1960, and, according to Veasey, it was "renovated extensively in the late 1990s and 2001." It is currently 88% occupied, and he says the rental rates range from $23 per sf to $24 per sf, plus electric. Stockton will handle leasing in house.
Among the current tenants are Temple University and the Commonwealth of Pennsylvania along with numerous law firms. "Law firms like this building because of its proximity to City Hall," Veasey says. "We think this is an extraordinary investment, given its location and the opportunity to retain wonderful tenants, lease up the vacant space and increase rents with the acceleration of the office market in Philadelphia." Stockton will handle leasing in house.
Stockton was formed two years ago by Jim Paterno, who previously held posts here with Jones Lang LaSalle, the Rubenstein Co. and Rubin Co., the forerunner of Pennsylvania Real Estate Investment Trust. Veasey, formerly with Bala Cynwyd-based Stoltz Real Estate Partners, joined Stockton and formed the investment side of the business this summer.
"This is the first of what we hope are many acquisitions in our new platform," Veasey tells GlobeSt.com. "We're looking at office and industrial properties up and down the East Coast." Without disclosing the size of Stockton's purse, he says, "through partners, we have access to a large amount of capital."
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