A company with deep South Jersey roots has decided Philadelphia would make a better home base, with help from a city tax credit and forgivable loan.
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Discount clothing retailer Burlington is moving its corporate headquarters from the chain’s namesake township to a 441K SF building it purchased at 3151 Market St., the company announced Thursday.
Burlington bought the building from Brandywine Realty Trust for $240M, equating to $544 per SF, according to a document the REIT filed with the Securities and Exchange Commission. The property is part of Brandywine’s Schuylkill Yards development.
The shift to University City will bring 2,000 workers and $370M worth of investment to the neighborhood over the next five years, according to a press release from the governor’s office.
It represents “the largest headquarters relocation to the city in years,” Gov. Josh Shapiro said in a statement.
Burlington received a $7M forgivable loan and a job creation tax credit award from the city to support the move. SEPTA and the Philadelphia Parking Authority are also offering discounts to commuters working at the new headquarters.
The company has been based in Burlington, New Jersey, since it was founded in 1972.
“Today’s announcement reinforces what we have long believed: the future of business is built in places that bring people, ideas, and opportunity together,” Brandywine CEO Jerry Sweeney said in a statement.
“Their investment validates our vision for Schuylkill Yards as a place where companies can access world-class talent, foster collaboration, and accelerate growth,” he added.
The building, completed last year, was 4% leased when Burlington and Brandywine finalized the transaction Monday, according to the SEC filing. The deal is expected to close by the end of September.
Brandywine will use the proceeds to pay off a $57.3M loan and expects to net $168M from the sale.
The University City office market had a 12.8% vacancy rate last quarter, which was lower than the 18.9% and 17.9% seen in Market East and Market West, respectively, Colliers reported.
The 441K SF of office space Burlington bought is equivalent to more than 10% of the 4.3M SF of inventory the brokerage counted in University City at the time.
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