Citi Global Realty and Goldman Sachs raised more than $45 million to refinance the building, as part of an $876.5 million CMBS deal that sold investments in dozens of U.S. properties to credit specialists and institutional investors.
The Fidelity piece went to landlord SSH Real Estate and its financial partner, Michael F. Young, who own the sixth through 30th floors of the white-stone, 1920s-era tower.
The partners' share of the building was appraised at more than $70 million. Borrowing $45 million at cheaper rates, the owners didn't have to put in any new cash.
SSH partner Jeffrey Seligsohn says his firm has boosted occupancy at the property to 86 percent, from 78 percent when it bought the space two years ago.
One of the New Yorkers who put the deal together told me investors who are returning to the office market are attracted to Philadelphia's stable - which is to say boring - real estate prices, as they scout for more deals here this year.
Profits on parole?
Former Pennsylvania
Gov. Mark Schweiker has joined the board of
MinSec Holdings Inc., a for-profit Wallingford, Delaware County, firm, backed by
Mike DiPiano's NewSpring Capital, of Radnor, and Baltimore-based
Camden Partners, which operates minimum-security work-release and parole centers for the state that Schweiker used to run, among other governments.
MinSec facilities include the parole center at 1344 W. York St. in Philadelphia and a community residential center at 201 E. 12th St. in Chester, which houses Pennsylvania and Delaware County work-release offenders.
