January 31, 2019
Chicago-based Equity Commonwealth is under contract to sell 1735 Market Street, a 1.3-million-square-foot office property in Philadelphia for a gross sale price of $451.6 million. The buyer is reportedly 1735 Market Holdco LP, a partnership involving New York-based Silverstein Properties Inc. and Philadelphia-based the Arden Group.
The 54-story Center City office tower is known as BNY Mellon Center, and is Philadelphia’s fifth-tallest building. Deal closing is expected to occur on or before March 27, 2019, unless another date is mutually agreed upon by the parties. The sales price works out to roughly $350-per-square-foot, which would rank as the highest ever for a Center City office building.
The 91%-leased tower is the last remaining Philadelphia asset in Sam Zell’s Equity Commonwealth REIT. Previously-divested properties included PNC Bank Building, the 1500 Market St. office complex and the One Franklin Plaza building.
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