Tuesday, September 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

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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.

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PhillyDeals posts drafts, transcripts and updates of Joseph N. DiStefano's columns and stories about Philly-area business, which he's been writing since 1989.

DiStefano studied economics, history and a little engineering at Penn and taught writing at St. Joseph's. He has written thousands of columns and articles for the Inquirer, Bloomberg and other media, wrote the book Comcasted, and raised six children with his wife, who is a saint.

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

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