The owner of a high-profile Center City office building is plotting upgrades after receiving a two-year loan extension in the wake of a hefty valuation cut.
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Accesso Partners shared the update about its 500K SF 1515 Market St. property Monday. The property management company negotiated new loan terms with lender JPMorgan Chase. It includes the two-year extension and the option for an additional year.
“This loan extension is a vote of confidence in Accesso’s ability to successfully reposition 1515 Market, an initiative that will be critical to the building’s continued success given the current flight to quality in the U.S. office market,” Accesso General Manager Deb Kolar said in a statement.
At 1515 Market, Accesso plans to create several rent-ready spec suites and updates to the building’s conference center and lobby. This work is expected to wrap up in 2026. The building was last renovated in 2017, according to Morningstar Credit.
Temple University, the largest tenant in the building, is planning to move out of its 130K SF when the university's lease expires in 2027. The company purchased a nearby former University of the Arts property in February.
The building's value was pegged at just $28M in August, down 68% from when Accesso bought it in 2014. It was 72% occupied in April, but the owner is optimistic about its leasing prospects.
“Out of respect for the leasing process, we can’t share any names, but what we can say is there is active interest in the space and Accesso will share an update when the time is right,” a spokesperson for the company told Bisnow.
Accesso’s $63.7M fixed-rate acquisition loan for the property originated in 2014. The loan entered special servicing in December 2023. Accesso has been delinquent on payments three times in the last year.
Spokespeople for Temple University and JPMorgan Chase didn't respond to Bisnow’s requests for comment.
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