Philadelphia still has a stock of older properties that offer repositioning opportunities, CBRE's James Gunning tells us—and lenders are eager to help qualified developers do those deals. "As developers continue to recycle properties to accommodate more efficient uses, we can expect to see an increased need for this type of financing," he says.
Recently James, along with colleagues Donna Falzarano and Evan Kleppe, arranged nearly $50M in acquisition and improvement financing for Carlyle Development Group. The Purchase, NY-based company plans to reposition the historic 534k SF Public Ledger Building in Philly. Located at 600 Chestnut St, the building is 65% occupied, with the GSA as its largest tenant. James notes that the financing provides for building renovations, as well as the flexibility to operate and dispose of the asset as needed.
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