Buccini/Pollin Pays $68M for Suburban Philly Office Asset
The new owner plans to invest $9 million in capital improvements.
One Tower Bridge. Image courtesy of The Buccini/Pollin Group Inc.
The Buccini/Pollin Group Inc. has acquired One Tower Bridge, a 271,678-square-foot, Class A office tower in the Philadelphia suburb of Conshohocken, Pa. Oliver Tyrone Pulver Corp. sold the 92 percent occupied asset for nearly $68 million, according to CommercialEdge information. The company took out a $59 million loan from Citibank to finance the acquisition.
BPG intends to make capital improvements worth $9 million to the building. The revamp will involve the renovation of the garage and plaza, upgrades to common-area restrooms and corridors, enhancements to the ground level lobby, as well as exterior facade work.
The 15-story historic building was designed by Skidmore Ownings & Merrill in 1989. One Tower Bridge features 799 on-site parking spaces, a fitness center, an outdoor terrace and a multi-purpose room.
The property is located at 100 Front St., along the Schuylkill River. One Tower Bridge is anchored by Morgan Stanley. TheITSupportCenter, Lincoln Healthcare, Vector Data Services and Barton Investment Management also have leases at the property, CommercialEdge data shows. The property has a 65 percent retention rate for tenants who initially leased space.
Office sales thrive in the Northeast, but Philadelphia trails
A recent CommercialEdge report reveals that Northeastern markets are top performers for office sales volume, with investors closing deals worth $666 million in Boston, $423 million in New Jersey and $351 million in Manhattan during the first two months of 2023.
However, the office sector is facing headwinds due to both a volatile lending environment and the uncertainty around hybrid work, which gives it some exposure in the face of economic challenges. On the overall, the Philadelphia office market presents a more challenging environment compared to other cities in the region. According to the same report, sales in the metro totaled $148 million in the first two months of the year, with assets trading at $146 per square foot.
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