This Week's Philadelphia Deal Sheet
On Thursday, Keystone Development + Investment will open the doors on the final piece of its 500K SF-plus SORA West development complex in Conshohocken: a $59M, 127-room hotel.
Keystone and partner Concord Hospitality developed and will operate the property, called Hotel West & Main, and run it as part of Hilton's boutique Tapestry Collection. A historic firehouse adjacent to the hotel building has been adapted to house an all-day café and bar called 1874 Social on the first floor and a gastropub and restaurant called Hook & Ladder Skybar on the second.
Combined with the restaurant component, and including a 4K SF space in the new building that remains available, Hotel West & Main totals 130K SF. The six-story building sits across a green space and multi-use outdoor event stage from the 11-story, 429K SF headquarters of AmerisourceBergen, the other major component of SORA West.
SALES
A newly constructed, 5.6K SF Wawa convenience store with 16 gas pumps in Northeast Philadelphia traded hands for $10M between two unnamed parties, with both sides represented by a Marcus & Millichap team of Derrick Dougherty and Scott Woodard. The brokers identified the seller as an investment property group and the buyer as a family office looking to place capital gains in a 1031 exchange. Opened in August 2021, the Wawa at 9101 Frankford Ave. is operated on a triple-net lease and was marketed as a fully passive investment.
Bratton Law Group has purchased an 18K SF office building at 383 Kings Highway in Cherry Hill to serve as its headquarters, NJBiz reports. Local insurance company Carleton Whitney had been the previous occupant. Bratton, which focuses on elder law and estate planning, was represented by Wolf Commercial Real Estate Executive Vice President John Mozzillo and Vice President Ryan Barikian in the transaction.
FINANCING
Nightingale Properties has applied for a second extension on a CMBS loan backed by Centre Square, the 1.8M SF, two-building office property at 1500 Market St., the Philadelphia Business Journal reports. The $368M loan was originated in 2020 and counts Midland Loan Services as its servicer and KeyBank National Association as its special servicer.
Centre Square was 69% occupied at the end of last year, with at least 130K SF of further space available for sublease from tenant Radian, whose lease expires in 2024.
THIS AND THAT
Local architecture and design firm L2P has agreed to be acquired by Stantec, an Edmonton, Canada-based company traded on the New York Stock Exchange, the Philadelphia Business Journal reports. L2P will continue to operate as an independent subsidiary out of its 40-person office in Three Logan Square, at least for now.
Stantec, which has a Philadelphia office of its own at 1500 Spring Garden St., plans to add positions at L2P when the merger closes, which is expected by the end of the year, PBJ reports. Among L2P's current projects is Parkway Corp.'s proposed office building at 2000 Arch St., currently slated as a build-to-suit for insurance giant Chubb.
