Metro Philadelphia – November 21st, 2016 – Cohen Equities announced today that the company has acquired 801 Market Street, a 382,801 square foot, 7-story, Class-B office condominium located in the heart of Philadelphia’s CBD. The Property comprises the top 7 floors of the 13-story building, with Pennsylvania Real Estate Investment Trust owning the lower six floors including the building’s retail anchor, Century 21. The office condo at 801 Market Street is currently anchored by Health and Human Services. Patrick Grenko and Tom Weitzel of JLL will be leasing the space. Jll’s engagement supplements strong leasing activity that is also being managed by James Mullarkey and Brian Neary of Newmark Grubb Knight Frank.
The acquisition was driven by strong market fundamentals and an identifiable demand for high quality, low cost office space. Two major catalysts for the renewal of the submarket are taking place in the property’s immediate vicinity: East Market, a $500 million mixed-use project encompassing four acres at 34 S 11th Street, and The Fashion Outlets of Philadelphia at Market East, a $600 million retail development project with an estimated opening of 2018. Additionally, recent leases in the area indicate a preference for large open floorplates, such as those available at 801 Market Street.
“801 Market Street gave us an opportunity to acquire an iconic CBD asset with a large capitalization and strong in-place cash flow,” said Meir Cohen, Chairman and CEO of Cohen Equities. “There aren’t a lot of assets within the value-add space that offer that remarkable combination of attributes, so this is a testament to our acquisitions team.”
801 Market Street is the second property Cohen Equities has purchased in Metro Philadelphia this year. The firm also acquired Oak Hill Plaza, a 165,000 square foot office building in King of Prussia in May of 2016. Both deals are illustrative of Cohen Equities’ institutional-grade focus on the office sector. The firm has demonstrated an affinity for targeting well-located, under-performing assets and bringing value through strategic capital improvements, aggressive leasing and asset management.
About Cohen Equities
Cohen Equities is a national real estate investment firm that pursues commercial assets that present an opportunity to add value in both secondary and gateway markets. The company has successfully invested in and improved more than 9 million square feet of real estate across the United States. Led by Meir Cohen, a real estate veteran with more than 30 years of experience, Cohen Equities creates significant value through active management, leasing and repositioning activities. For more about Cohen Equities, please visit cohenequities.com.