Sunday, March 1, 2015

2000 Market sold at double its 2009 value

CBRE spent $20 million turning $56 million into $110 million in just four years

2000 Market sold at double its 2009 value

A high-rise building at 2000 Market Street in Center City has sold for a reported $110 million. Has the market finally turned? (Photo: Wikipedia.com)
A high-rise building at 2000 Market Street in Center City has sold for a reported $110 million. Has the market finally turned? (Photo: Wikipedia.com)

It's either a Center City office market recovery -- or a canny investment by a property specialist who had the capital, smarts and guts to take advantage of a lender's weakness in the financial panic of a few years back -- and scored big:

CBRE Investments confirms it has sold 2000 Market Street, a 600,000 sq ft tower it bought from lender Prudential after its owners defaulted four years ago, to Rosemont Realty Co. of Santa Fe, New Mexico.

A source familiar with the sale confirmed the building changed hands for $110 million -- the same figure the Wall St Journal reported the parties were close to back in January -- and twice the $56 million CBRE paid Prudential in 2009 to buy out the previous defaulted owners, a Deutsche Bank real estate fund.

CBRE pumped in another $20 million for improvements, winning new law firm tenants to replace the Arkema headquarters and other departed occupants, and leaving CBRE with a net (unamortized) $34 million, four-year profit.

The building had previously been sold by Rubenstein & Co. to the Deutsche fund for $76.6 million in 2004.

Joseph N. DiStefano
About this blog

PhillyDeals posts raw drafts and updates of Joseph N. DiStefano's columns and stories about Philly-area finance, investment, commercial real estate, tech, hiring and public spending, which he's been writing since 1989, mostly for the Philadelphia Inquirer.

DiStefano studied economics, history and a little engineering at Penn, taught writing at St. Joe's, and has written the book Comcasted, more than a thousand columns, and thousands of articles, and raised six children with his wife, who is a saint.

Reach Joseph N. at JoeD@phillynews.com or 215 854 5194.

Joseph N. DiStefano
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