The lease term is slightly more than 10 years, according to Bill Luff, EVP in the local office of Jones Lang LaSalle. He and Ken Zirk, a JLL SVP, represented Unisys, which is a JLL corporate account, in the negotiations.
Luff tells GlobeSt.com, "the asking benchmark at Two Liberty is now a trophy price in the low $30s per sf, but, through timing and having such a desirable tenant, we were able to come in below that in the high $20s per sf." The City's commerce department, the current administration led by Mayor John Street, and Michael Nutter, mayor-elect, were all involved in advancing the deal to bring another major company headquarters to Center City.
Luff says "the City put together a nice financial package that helped balance the issues of costs with desire." According to published reports that GlobeSt.com was unable to confirm by deadline, the city is providing up to $1 million in annual job-creation tax credits.
The Unisys space includes part of the 27th floor and all of floors 34, 35 and 36, which are the highest floors of the office component of the building. Americas Capital Partners acquired the building for approximately $145 million in July 2005 and subsequently converted the top floors to residential condos. Luff says this lease takes occupancy in the office component well into the 90% level, and adds "there won't be space left there by early 2008."
Joe Wolff, SVP; George Cauffman, SVP, and Mitch Marcus, first VP in the local office of CB Richard Ellis, represented Americas Capital, which is headed by Brian Katz. The brokers and Katz decline to comment on the deal until ACP issues a release later today or tomorrow.
Unisys' roots are here. University of Pennsylvania computer pioneers founded its predecessor company, Eckert-Mauchly Computer Corp., here in the 1940s and created the Eniac and Univac computers. The company now employs about 2,400 at various locations in the Delaware Valley, including Blue Bell. Luff says JLL is "putting the final pieces on transactions for space that will remain in the suburbs."
Approximately 225 executive and corporate "client-facing" staff will relocate to Two Liberty beginning in January 2009, according to a Unisys statement. "We are investing in a new and exciting future for Unisys, and Philadelphia is a key part of that," says Joe McGrath, president and CEO. "Moving our headquarters to Philadelphia will enable us to better showcase Unisys as a strong and innovative brand to clients and prospects not just in the city, but also around the world."
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