The PNC Bank Building, one of the landmarks of the Philadelphia central business district, has changed its owner. The iconic high-rise was sold by Equity Commonwealth to American Real Estate Partners (AREP), the former owner of Two Liberty Place.
The transaction, which closed at $160 million, was orchestrated by HFF. The brokerage services provider also worked with AREP to secure a three-year, floating-rate financing loan for the acquisition.
The tower located at 1600 Market Street was built in 1982 on the site of the Fox Theatre and was completely renovated in 1997. The new owner plans to further recondition the Class A office building in order to amenitize it and heighten the retail experience. Currently, the 825,968-square-foot dark glass skyscraper features 10,000 square feet of retail and an on-site conference center.
Enjoying a “Main & Main” location in Center City, the 39-story property attracts a wide array of high-profile tenants. PNC Financial Services, after which it was named, is the largest one. According to Yardi Matrix data, the tower is highly popular among law firms, its tenant list including names like McCarter & English LLP, Schnader Harrison Segal & Lewis LLP, and Bezark Lerner & De Virgilis. At the time of the sale, 1600 Market St. was 84% leased.
The 491-foot-tall high-rise is the 16th tallest building in Philadelphia. The Center City asset is a transit-oriented property located within a quarter mile of five public transport stations.