OVERVIEW
Combined capital improvements and building upgrades with aggressive leasing program targeting neighboring hospital and health care systems to raise building occupancy from 75% to 95%.
Address: 125 South Ninth Street
Location: Philadelphia, PA
Square Footage: 101,697
Investment Profile: Core-Plus
Purchase Date: August 2006
Sale Date: June 2015
Purchase Price: $8,650,000
Sale Price: $16,300,000
INVESTMENT THESIS
Well Located | Reposition Opportunity | Embedded Micro-Market Demand Drivers |
Prominent location in Philly’s Center City. Close to all forms of public transportation, Washington Square Park, as well as one of Philadelphia’s largest hospitals. | This property could be converted into residential or medical office space or sold to a single user expanding in the area. | Proximity to Wills Eye Hospital and Thomas Jefferson University Hospital which provided solid base for leasing & sale. Market push to residential conversions put pressure on available office space in Center City. |
EXECUTION
UPGRADED INFRASTRUCTURE
Undertook capital expenditures to upgrade façade, mechanical systems, and elevators to create best in class office product.
IMPROVED MANAGEMENT
Provided professional responsive management to meet existing tenants’ needs and to appeal to potential new tenants.
ELEVATED PROFILE
Improved appearance of the building to increase occupancy to 95% from 75%.
RESULTS
Sold for $16,300,000 (an equity return multiple of 2.5).
JOSS REALTY PARTNERS LLC
650 Fifth Avenue, Suite 2400
New York, New York 10019
Phone (212) 710-8193
