"This is obviously terrific news for Center City," said Michelle Shannon, director of marketing for the Center City District, a nonprofit group that researches Center City business trends and administers cleanliness and safety programs in the area.
"It is just one more piece of evidence that the viability of Center City as an office area is increasing," she said.
Guers said the building would be gutted, down to the steel, and renovated. One of the biggest tasks will be asbestos removal, which should cost about $8 million. The building will also need new fire alarm and sprinkler systems.
Renovation plans include new windows throughout and an atrium lobby that would rise several stories. Guers said the building should be ready for tenants by April 2001. He said he thought the space would rent for about $25 a square foot.
"It's a very fast-track project," Guers said. Usually, he said, it takes 32 months - including the design phase - to build a building. This project, to begin in January, would be finished in 16 months because the design can take place as the building is being gutted.
The seller was Rutherford Hayes Delaware Inc., an affiliate of GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corp. The sale was brokered by Cushman & Wakefield of Pennsylvania Inc., represented by William J. Hirschfeld, James P. Vesey and Michael D. Hines.
Guers said that about half of the purchase and renovation costs were being financed by equity put up by Leggat's partner, Fremont Bank, an investment bank set up by the Bechtel engineering family in San Francisco.
"We're seeking financing as we're seeking more co-investors," Guers said.
