Citadel Credit Union Provides $50M Refi on Philly Office Tower

A joint venture between CSB Holdings and Tide Realty Capital has sealed a $50 million loan to refinance a newly acquired Philadelphia office tower, Commercial Observer has learned.

Citadel Credit Union supplied the loan on the 29-story office building at 2000 Market Street in Philadelphia’s Center City neighborhood. CSB and Tide Realty teamed up to purchase the asset for $45.5 million last year at a 64 percent discount from Nahla Capital as part of a value-add strategy. The refi will pay off a previous acquisition loan from Maxim Capital and fund a $14 million credit reserve for future leasing.

Two50 Capital arranged the transaction with a team led by Adrian Edery.

The 668,335-square-foot property was 68 percent occupied at time of the acquisition with existing tenants having a weighted average lease term of 5.5 years, the Philadelphia Business Journal reported at the time. Nahla Capital had partnered with a division of Goldman Sachs to buy the building for $125.4 million in 2018.

Edery, principal at Two50 Capital, said the new ownership has boosted leasing occupancy at the 1973-builder property to around 77 percent after inking some major renewals over the past year. Anchor tenants include law firm Marshall Dennehey and Board of Pensions of the Presbyterian Church.

“Given how sensitive the office debt markets are in terms of lender appetite, we are deliberate about which operators we are looking to represent as well as the assets we are arranging the debt on,” Edery said in prepared remarks. “We are looking to place debt on Class A and B buildings in the top markets that have genuine positive absorption with the right story.”

Citadel Credit Union, CSB Holdings and Tide Realty Capital did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com