New York Buyer Seeks $38M Loan for Philadelphia Office Building
Damian Ghigliotty June 20, 2014, noon
The New York-based real estate investment firm the Nightingale Group is in negotiations to acquire a Philadelphia office building and is seeking a $38 million loan for the transaction, a person familiar with the transaction told Mortgage Observer exclusively on background.
Nightingale recently agreed to purchase the 19-story office property, Seven Penn Center, from Arden Seven Partners, an affiliate of the Arden Group in Philadelphia, for $42 million. Now, the firm is on the hunt for a five-year floating-rate loan to help cover the cost, the person said.
Including the building’s lease-up price, “costs associated with stabilization of the property bring it to a $54 million total capitalization,” according to the person familiar with the negotiations.
The Chicago-based real estate services firm JLL is brokering both the sale and the loan, the person said. A JLL spokesperson declined to comment. Nightingale did not return requests for comment in time for publication.
Arden acquired the building in 1995 and unsuccessfully put it on the market once before in 2006, according to prior news reports.
The 286,574-square-foot office property located at 1635 Market Street, in the heart of Philadelphia’s Central Business District, was built in the 1960s and underwent major renovations in 1989.