PHILADELPHIA-CBRE has sold the 2000 Market Street office tower to New Mexico-based Rosemont Realty for a reported $110 million. That is close to twice the $56 million a CBRE investment fund paid for it in 2009.
The sale was part of a two-building deal with Rosemont, which also acquired the Dulles View building in suburban Washington, D.C., which had been speculatively built and is now close to fully occupied. CBRE's Global Investment arm sold the properties on behalf of two of its funds.
The 29-story tower in downtown Philadelphia is a 665,649-square-foot building that the CBRE Strategic Partners U.S. Value 5 fund acquired in December 2009 and renovated extensively. CBRE also built-out a 5-Star Conference Center and created a spec' suite program in the building. Since acquiring the property, the team had executed over 340,983 square feet of gross leasing and raised occupancy from 77% percent to 95%.
Dulles View is a two-building property which has a total of 360,045 square feet. The property was a speculative office development by CBRE Strategic Partners U.S. Fund IV that was completed in 2008. The team executed 340,243 square feet of leasing and brought the property to 94.5% occupancy.
“We have successfully completed our business plans for these properties in line with the value-added strategy for our CBRE Strategic Partners U.S. series of funds,” said Vance Maddocks, president of CBRE Strategic Partners U.S. in a statement. “This included making significant investments, either through development or repositioning, to lease these properties.”
In a separate transaction this week, CBRE also brokered the $74.7 million sale of 8800 Tinicum Boulevard in Philadelphia to an affiliate of Cole Real Estate Investments. Liberty Property Trust was the seller in that transaction. The 441,000 square foot building is occupied by PNC Bank, for whom Liberty developed the property in two phases, delivered in 1997 and 2000.
CBRE represented Liberty in the transaction. Cole was represented by Bob Corry, senior vice president of office and industrial acquisitions.
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