Daily market intelligence on mortgages, equity raising, investment sales, and CMBS.

Sunday, 28 November 1999

Art Deco-Era Building in Run-Down Area Grabs Philadelphia's Rent Crown

The old North American Building has quietly found lucrative new life at the epicenter of the high-tech industry in the city. Owners of similar structures are taking note.
November 29, 1999

By Thomas J. Walsh, VertiNews.com Senior Writer

PHILADELPHIA – A behemoth, 70-year-old mixed-use building on the northern edge of downtown Philadelphia is home to the highest rents in any commercial building – office or otherwise – in its entire market area.

The building is 401 N. Broad Street, also known as the North American Building, a 12-story, 1.3 million square-foot structure that takes up an entire city block. For about three years, it has been changing from a sleeping giant into a cash cow for its owners, a private partnership known as Callowhill Management. The Philadelphia office of Colliers International, known as Colliers, Lanard & Axilbund, handles leasing for the property.

Rents at the North American Building are in the $35 per square foot range, higher than any other office space, including Class-A space, in the entire region. Top rents in the most expensive area, Bala Cynwyd, just to the west of the city, are $28-$32/sf. Other suburban locations come close to that mark, but nothing downtown – not even the ritziest skyscrapers – fetch anything above $25.

What makes it all the more remarkable is that the building was getting less than half its current rates only a year ago. And rents were in the single digits as recently as 1997.

The building is known as a "carrier hotel," because of its concentration of telecommunications tenants. It's one of at least two buildings in Center City Philadelphia to be converted into such a use, and part of a trend in older industrial cities across the country of converting buildings to new...


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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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