Cigna Downsizes Center City Office Footprint: The Philadelphia Deal Sheet
A major health insurance firm shrank its footprint at the Philadelphia office tower where it has maintained a presence for nearly three decades.
Cigna signed a new lease at Coretrust Capital Partners’ Two Liberty Place that covers 165K SF across the building’s 11th to 16th floors, according to CBRE Vice President Mark Adzick, who represented the firm.
“Cigna evaluated multiple options before ultimately renewing and consolidating,” the broker said.
“Location, building quality, ownership and leasing incentives played key roles in Cigna staying at Two Liberty,” he added.
Cigna and Coretrust didn't respond to Bisnow’s requests for comment.
The firm previously leased 292K SF, of which 82K is still subleased by New York Life Insurance Co. That organization will stay in that subleased space until 2027, but it is in the market for a 50K SF to 60K SF lease nearby after it expires, Adzick said.
The broker said 44K SF in the building will be vacated as a result of Cigna’s downsizing.
The insurer began renting space at Two Liberty Place when the building was completed in 1990. It has gradually downsized its footprint in recent years.
SALES
Velocity Venture Partners has sold two condos totaling 17K SF at the Willow Grove Industrial Center for $2.3M to an unnamed pharmaceutical production firm. Glenn Gaines of Suburban City Group represented the buyer.
***
Pharmaceutical firm Incyte is selling two downtown Wilmington office properties totaling more than 500K SF to the Buccini Pollin Group, WDEL reported. The former owner was set to receive $15M in state funding to redevelop Bracebridge I and III on 11th and King streets. It has committed to leasing 80K SF at Bracebridge I once work there is complete.
CONSTRUCTION AND DEVELOPMENT
SEPTA is seeking proposals for a mixed-use redevelopment of the underutilized parking lot next to its Langhorne regional rail station, the Philadelphia Business Journal reported. It will host a public meeting about the matter March 23.
FINANCING
Conshohocken-based CenterSquare Investment Management has closed a $50M co-investment vehicle focused on essential service industrial spaces with ESAS. For the purposes of this fund, the subset of the small-bay sector is defined as sub-10K SF multitenant industrial product in densely populated infill locales.
PEOPLE
Conshohocken-based Morgan Properties, the nation’s third-largest multifamily owner, has two new co-CEOs. Founder Mitchell Morgan has passed the torch to his sons Jonathan and Jason Morgan.
Seven other people at the company were promoted to C-suite positions, including Greg Curci, who is now the firm’s inaugural chief operating officer.
