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

 

CMBS DELINQUENCY VOLUME

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CMBS SPECIAL SERVICING VOLUME

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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

 

RCA CPPI

 

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CMBS 2.0 Spreads

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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

 

 

 

REITCafe

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