This Week's Philadelphia Deal Sheet
A Center City office building undergoing renovations including the addition of a pickleball court is seeing an uptick in leasing activity.
JLL has leased 30K SF at the 665K SF 2000 Market St. since the start of the year, the company announced. Inked deals include one renewal, two new leases and two expansions for an average term of seven years.
Tenant names and other terms weren't disclosed.
The Class-A office building’s renovations will include a new lounge for workers as well as a conference center with meeting spaces and a training room. Plans also call for a fitness center and pickleball court.
A completion date for those projects hasn't been announced.
Kevin Maloney and David Mendez of JLL represented building owners Nahla Capital and Goldman Sachs in the transactions. The brokers are marketing just under 26K SF left at the address, according to a listing on their site.
“This positive momentum for the west side of Market Street is an indicator that things like lounges and pickleball courts are not just for residential buildings, but also a driver for employers who want to create an environment for their organizations to thrive in and grow,” Mendez said in a release.
PEOPLE
Equus Capital Partners has begun to shift executive roles as part of a multiyear succession plan.
The Newtown Square-based real estate investment manager and developer named Stephen Spaeder its CEO and president last week. Spaeder, who has been at the firm since 1988, led acquisitions and operations for most of the Equus portfolio. He also helmed the firm’s ground-up and adaptive reuse projects.
Former CEO Dan DiLella has been named chair of the board after three decades leading the firm. George Haines was named chief operating officer and executive vice president, succeeding Art Pasquarella, who has transitioned to the board.
Howard Patent has been named chief financial officer, succeeding Robert Maloney, who transitioned to the board, and Kyle Turner will be the executive vice president and chief investment officer.
“This next generation of leadership has the experience, vision, and deep-rooted understanding of Equus’ core values that will drive the company forward,” DiLella said in a press release, noting that under Spaeder, the firm will continue to expand.
The firm’s latest fund, Fund XII, totaled more than $465M in equity commitments, with an additional $515M in two co-investments involving large industrial portfolio acquisitions, according to the release.
DEVELOPMENT
A Los Angeles-based real estate group plans to turn a tract near the Atlantic City International Airport into a 3.5M SF industrial campus.
Industrial Realty Group will develop a build-to-suit campus on a 400-acre property between the Atlantic City Expressway and White Horse Pike, according to the Philadelphia Business Journal.
Groundbreaking is slated for 2025, and the project is expected to take 10 years to complete. The development will cost an estimated $350M, or $100 per SF, the firm’s president, Stuart Lichter, told the PBJ.
IRG landed the property last fall after reaching an agreement with the South Jersey Transportation Authority on a ground lease following a request for proposals process.
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Pennrose and its public partners have announced $11.7M of capital improvements at an affordable housing community for people with disabilities in Phoenixville.
The developer has partnered with the Pennsylvania Housing Finance Agency, Schuylkill Township, the Chester County Department of Community Development, the Housing Authority of Chester County and Human Services Inc. to redevelop Liberty House.
Plans for the 36K SF building call for replacing outdated mechanical systems and appliances and making units compliant with accessibility requirements. The amenities area will be expanded by almost 60% to add space for on-site supportive services, and space formerly used for staff will be converted into two units for residents.
The project will be managed by the Pennrose Management Co., with supportive services provided by HSI. It is set for completion in November.
“This activity supports the county’s goals of supporting affordable housing activities and supporting efforts to prevent and end homelessness, as well as the priority need of services and housing for vulnerable populations,” Chester County Department of Community Development Director Dolores Colligan said at an event for the redevelopment of Liberty House.
The agency awarded the project more than $4.4M.
The National Low Income Housing Coalition estimates there is a shortage of nearly 266,000 affordable rental homes across Pennsylvania, according to a release. In Chester County, where Liberty House is located, the waitlist for affordable housing exceeds 4,500 households.
