Landmark Philly Tower Lands $80M Refi

123 S. Broad St. Image courtesy of PCCP LLC

PCCP LLC has provided a $80 million senior note for the refinancing of 123 S. Broad St., a 705,500-square-foot office building in Philadelphia, also known as the Wells Fargo Building. The ownership of the 30-story landmark tower includes SSH Real Estate, Quilvest Capital Partners and Young Capital.

According to John Randall, partner with PCCP, the loan will refinance the existing debt and will also serve a $4.1 million capital improvement plan. The renovation efforts will boost the property’s amenity package, with the addition of a rooftop deck, fitness center and shared conference space. JLL’s Ryan Ade and Jim Cadranell arranged the transaction.

Once the tallest building in the city and the ninth-largest in the world, 123 South Broad St. was constructed in 1928 in Center City, three blocks south of City Hall.

SSH acquired the historic tower in a portfolio transaction which included the neighboring property known as The Witherspoon Building at 1319 Walnut St., in a two-part deal in 2008 and 2018. SSH separated the two structures, moved its headquarters to 123 S. Broad St., while redeveloping The Witherspoon Building into a 186-unit apartment hotel.

Post-pandemic confidence

The Wells Fargo building currently offers a three-story lobby, ground-floor bike room and concierge service. Since the onset of the global health crisis, the property gained nine new tenants occupying a combined 60,000 square feet. At the time of the refinancing, the building’s roster included 92 tenants.

Despite the office market’s pandemic-induced uncertainties, PCCP has been vigorously recapitalizing properties across the country, including five loans within New York City. Earlier in August, the finance and investment management firm provided a $148 million loan for the recently renovated, 387,300-square-foot 1410 Broadway tower in Midtown Manhattan.