philadelphia, pennsylvania - loopnet · philadelphia city hall size (sf) 48,069 year built 1960...
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P H I L A D E L P H I A , P E N N S Y L V A N I A
RITTENHOUSE SQUARE | 48,000 SF SINGLE TENANT OFFICE | 12+ YEARS OF TERM | CORPORATE GUARANTY
E X E C U T I V ES U M M A R Y
I 1626 LOCUST STREET EXECUTIVE SUMMARY I 3
THE OPP ORTUNITYHolliday Fenoglio Fowler, L.P (“HFF”), has been retained on an exclusive basis to arrange the sale of 1626 Locust Street
(the “Property” or “Offering”), a 48,069 square foot, class A single tenant office property located in the heart of Rittenhouse
Square, Philadelphia’s most sought after and prestigious neighborhood. The Offering is 100% net leased to Regus’ creative
office subsidiary, Spaces. Built in 1960 and completely renovated in 1989 and again in 2019, to the most forward looking
office design in the market today, 1626 Locust Street offers qualified investors 12+ years of secure income with annual rent
escalations and minimal landlord responsibility. This long term lease has a corporate guarantee from Regus, one of the
first companies to offer shared office spaces and the world's largest provider of flexible work solutions.
IDEAL 1031 EXCHANGE CANDIDATE1626 Locust Street’s recent renovation, stable tenancy, long-term lease obligation, increasing rents and net lease structure make this opportunity a perfect candidate for an investor’s 1031 exchange needs while also being located in Philadelphia’s most dynamic location, Rittenhouse Square.
1626 LOCUST STREET I 4 I EXECUTIVE SUMMARY
1626 LOCUST STREET, PHILADELPHIA, PA
RITTENHOUSESQUARE
THE COMCASTTECHNOLOGY CENTER
THE COMCASTCENTER
ACADEMY OF MUSIC
SUBURBAN STATION
PHILADELPHIA CITY HALL
RITTENHOUSE SQUARE PARK
JFK BOULEVARD
MARKET STREET
CHESTNUT STREET
WALNUT STREET
LOCUST STREET
SPRUCE STREET
BROAD STREET
17TH STREET
16TH STREET
SIZE (SF) 48,069
YEAR BUILT 1960
YEAR RENOVATED 1989 / 2019
ARCHITECTS CLARENCE S. THALHEIMER DAVID D. WEITZ
CURRENT OCCUPANCY 100%
ESTIMATED LEASE START DATE JULY 1, 2019
LEASE TERM 12 YEARS, 10 MONTHS
YEAR 1 RENTAL INCOME $1,562,243
ANNUAL ESCALATIONS 2%
LEASE GUARANTY RGN - NATIONAL BUSINESS CENTERS, LLC
I 1626 LOCUST STREET EXECUTIVE SUMMARY I 5
RIT TENHOUSE SQUARE
SIZE (SF) 48,069
YEAR BUILT 1960
YEAR RENOVATED 1989 / 2019
ARCHITECTS CLARENCE S. THALHEIMERDAVID D. WEITZ
CURRENT OCCUPANCY 100%
ESTIMATED LEASE START DATE JULY 1, 2019
LEASE TERM 12 YEARS, 10 MONTHS
YEAR 1 RENTAL INCOME $1,562,026
ANNUAL ESCALATIONS 2%
LEASE GUARANTY RGN - NATIONAL BUSINESSCENTERS, LLC
PHILADELPHIA’S MOSTSOUGHT AFTER NEIGHBORHOOD1626 Locust Street is situated in Philadelphia’s most sought after, upscale neighborhood: Rittenhouse Square. Located between Market and Pine Streets from 15th to 24th streets, the neighborhood is occupied by luxury hotels, high-end office and retail space, as well as world-renowned restaurants. This highly coveted location offers energetic nightlife and an extensive array of art and culture providing entertainment options, all just steps from the Offering. Residents of Rittenhouse Square consistently choose to live and work in this neighborhood, taking advantage of the area’s unrivaled cultural and lifestyle amenities, proximity to the Philadelphia MSA’s densest office submarket, and direct access to a variety of transportation options.
ONE OF FIVE ORIGINAL
SQUARES PLANNED
BY CITY FOUNDER
WILLIAM PENN IN THE
LATE 17TH CENTURY,
RITTENHOUSE SQUARE IS
THE HEART OF CENTER
CITY’S MOST EXCLUSIVE
NEIGHBORHOOD.
1626 LOCUST STREET I 6 I EXECUTIVE SUMMARY
IRREPLACEABLE UNDERLYING PHYSICAL PROPERTYOriginally built in 1960 by award-winning architects Clarence S. Thalheimer & David D. Weitz, 1626 Locust Street was completely renovated in 2019 and and is located in Rittenhouse Square, where the median home value within a half mile radius is $467,531 and over 79% of its residents have a Bachelor's degree or higher. The Property's premier location offers qualified investors the rare opportunity to acquire an asset that provides stable, long-term cash flow with irreplaceable underlying real estate.
PREMIER LOCAT ION
I 1626 LOCUST STREET EXECUTIVE SUMMARY I 7
EXCELLENT AC CE S S IB IL I TY
SEPTA:
Trolley Lines (end of route) SEPTA Bus RouteBroad Street Line and
Broad-Ridge SpurStation
Regional Rail Lines
Center City Station Station Station Subway Elevated
Market-Frankford Line
Station Tunnel Street PATCO High Speed Line
Ave
nue
of t
he
Arts
Spangler St
Napa St
National St
Douglas St
Melon St
34th St
35th St
Hamilton St
Shedwic
k St Wallace St
Mt V ernon St
Haverford Av
Brandywine St
Pearl St
Powelton Av
Fairmount Av
33rd St
32nd St
Cherry St
Arch St
Filbert St
Warren St
23rd
St
22nd
St
Lancaster Av
Pennsylvania Ave
Benjamin Franklin Pkwy
Arch St
MARKET STREETMARKET STREET
VINE ST EXPRESSWAY
Spring Garden St
VINE ST EXPWY
16th
St
18th
St
9th
St
Ridge Av
Race St
JFK Blvd
21st
St
6th
St
5th
St
2nd
St
Spring Garden St
Vine St
Arch St
Rand
olph
Pl
Pember ton St Monroe St
Spruce St
Fitzwater St
7th
S
t
Dari
en S
t
Juni
per S
t
Sart
ain
St
10th
S
t
Faw
n St
Isem
inge
r
St
Jess
up S
t
Clift
on S
t
Walnut St
South St
Chestnut St
Mar
tin S
t
Dorr
ance
St
Cle
vela
nd S
t
Hick
s St
Rittenhouse Sq
Ranstead StLudlow St
23rd
St
21st
St
Ave
nue
of t
he
Arts
Walnut St
Chestnut St
Spruce St
Lombard St
21st
St
South St
Broa
d St
Broa
d St
34th
St
36th
St
Civic Center Blvd
33rd
St
Con
vent
ion A
v
Market St
Clymer St
Uber
St
Mol
e St
23rd
St
24th
St
22nd
St
St Albans St
Kauffman St
Montrose St
Catharine St
Christian St Christian St20th
St
17th
St
16th
St
15th
St
19th
St
18th
St
Rose
woo
d
St
13th
St
12th
St
Fulton St
Hall St
Clymer St
Fulton St
Queen StKauffman St
Fitzwater StCatharine St
Webster St
11th
St
Salter
Per
cy
S
t
Delh
i
St
Sche
ll St
Rees
e St
SCHUYLKILL
Broa
d St
36th St
Christian St
Baring St
Osler Cir
HealthSciences Dr
St Pass
yunk
Av
Webster St
MARKET STREETMARKET STREET
MARKET STREETLOCUST STREET
17TH
ST
16TH
ST
Pennsylvania Convention CenterPennsylvania Convention Center
F RANKLINSQUARE
RITTENHOUSESQUARE
LOGANSQUARE
WASHINGTONSQUARE
F RANKLINSQUARE
RITTENHOUSESQUARE
LOGANSQUARE
WASHINGTONSQUARE
AMTRAK30th Street
Station
AMTRAK30th Street
Station
City HallStation
City HallStation
12th-13thSt. Station
9th-10th St.Station
Walnut-LocustStation
34th St.Station
22nd St.Station
19th St.Station
15th St.Station
15th-16th St.Station
8th St.Station
Lombard-SouthStation
Race-Vine Station Chinatown
Station
Spring GardenStation
Spring GardenStation
13th St. Station
11th St.Station 5th St/
IndependenceHall Station
2nd StStation
JeffersonStation
AMTRAK30th Street
Station
City HallStation
12th-13thSt. Station
9th-10th St.Station
Walnut-LocustStation
34th St.Station
22nd St.Station
19th St.Station
15th St.Station
15th-16th St.Station
8th St.Station
Lombard-SouthStation
Race-Vine Station Chinatown
Station
Spring GardenStation
Spring GardenStation
13th St. Station
11th St.Station 5th St/
IndependenceHall Station
2nd StStation
JeffersonStation
95
76
676
76
95
30
O4 09 12
Market-Frankford Line to 69thStreet Transportation Center
11 Darby Transportation Center13 Yeadon/Darby Transportation Center34 61st-Baltimore36 80th-Eastwick
Trolley Routes10, 11, 13, 34, 36
Airport,Media/Elwyn,
Wilmington/NewarkLines
SEPTA Regional Rail Lines
AMTRAK service toBaltimore and
Washington, DC
AMTRAK service toBaltimore and
Washington, DC
AMTRAK service to New York, Boston, Montreal, Harrisburg, Pittsburgh and
Chicago
NJ Transit service to
Atlantic City10 63rd-Malvern
Trolley
Ro
utes
11,1
3,34
,36
Chestnut Hill East,
Fox Chase,Lansdale/
Doylestown,Manayunk/Norristown,Warminster,West Trenton
Lines
SEPTA Regional Rail Lines
Market-Frankford Line to 69thStreet Transportation Center
PATCO High Speed Line
PATCO High Speed Line
11 Darby Transportation Center13 Yeadon/Darby Transportation Center34 61st-Baltimore36 80th-Eastwick
Trolley Routes10, 11, 13, 34, 36
Trolley Route 10
Broad-Ridge Spur to Fern Rock T.C.Bro
ad S
tree
t Lin
e to
Fer
n Ro
ckTr
ansp
orta
tion
Cent
er
AMTRAK service to New York, Boston, Montreal, Harrisburg, Pittsburgh and
Chicago
NJ Transit service to
Atlantic City
SOCIETY HILL
OLD CITY
WASHINGTON SQUARE
RITTENHOUSE SQUARE
UNIVERSITY CITY
SOCIETY HILL
OLD CITY
WASHINGTON SQUARE
RITTENHOUSE SQUARE
17TH
ST
16TH
ST
UNIVERSITY CITY
UNMATCHED COMMUTER ACCESS1626 Locust Street's ideal location places its tenants within 350 feet of Patco's 15/16th Locust Street Station and 3 blocks from SEPTA's Walnut-Locust Station. In addition to its extremely walkable location, the Property offers convenient access to all major arterial roadways of the region, including Interstates 76, 95 and 676. 1626 Locust Street’s central location provides multiple forms of public transportation, including numerous bus, subway, and regional train lines providing immediate accessibility to the entire city and its surrounding suburbs. Amtrak’s 30th Street Station, the third busiest stop along the nation’s Northeast rail corridor, is also just a short walk away.
100TRANSIT SCORE
93BIKE SCORE
100WALK SCORE
SEPTA:
Trolley Lines (end of route) SEPTA Bus RouteBroad Street Line and
Broad-Ridge SpurStation
Regional Rail Lines
Center City Station Station Station Subway Elevated
Market-Frankford Line
Station Tunnel Street PATCO High Speed Line
Ave
nue
of t
he
Arts
Spangler St
Napa St
National St
Douglas St
Melon St
34th St
35th St
Hamilton St
Shedwic
k St Wallace St
Mt V ernon St
Haverford Av
Brandywine St
Pearl St
Powelton Av
Fairmount Av
33rd St
32nd St
Cherry St
Arch St
Filbert St
Warren St
23rd
St
22nd
St
Lancaster Av
Pennsylvania Ave
Benjamin Franklin Pkwy
Arch St
MARKET STREETMARKET STREET
VINE ST EXPRESSWAY
Spring Garden St
VINE ST EXPWY
16th
St
18th
St
9th
St
Ridge Av
Race St
JFK Blvd
21st
St
6th
St
5th
St
2nd
St
Spring Garden St
Vine St
Arch St
Rand
olph
Pl
Pember ton St Monroe St
Spruce St
Fitzwater St
7th
S
t
Dari
en S
t
Juni
per S
t
Sart
ain
St
10th
S
t
Faw
n St
Isem
inge
r
St
Jess
up S
t
Clift
on S
t
Walnut St
South St
Chestnut St
Mar
tin S
t
Dorr
ance
St
Cle
vela
nd S
t
Hick
s St
Rittenhouse Sq
Ranstead StLudlow St
23rd
St
21st
St
Ave
nue
of t
he
Arts
Walnut St
Chestnut St
Spruce St
Lombard St
21st
St
South St
Broa
d St
Broa
d St
34th
St
36th
St
Civic Center Blvd
33rd
St
Con
vent
ion A
v
Market St
Clymer St
Uber
St
Mol
e St
23rd
St
24th
St
22nd
St
St Albans St
Kauffman St
Montrose St
Catharine St
Christian St Christian St20th
St
17th
St
16th
St
15th
St
19th
St
18th
St
Rose
woo
d
St
13th
St
12th
St
Fulton St
Hall St
Clymer St
Fulton St
Queen StKauffman St
Fitzwater StCatharine St
Webster St
11th
St
Salter
Per
cy
S
t
Delh
i
St
Sche
ll St
Rees
e St
SCHUYLKILL
Broa
d St
36th St
Christian St
Baring St
Osler Cir
HealthSciences Dr
St Pass
yunk
Av
Webster St
MARKET STREETMARKET STREET
MARKET STREETLOCUST STREET
17TH
ST
16TH
ST
Pennsylvania Convention CenterPennsylvania Convention Center
F RANKLINSQUARE
RITTENHOUSESQUARE
LOGANSQUARE
WASHINGTONSQUARE
F RANKLINSQUARE
RITTENHOUSESQUARE
LOGANSQUARE
WASHINGTONSQUARE
AMTRAK30th Street
Station
AMTRAK30th Street
Station
City HallStation
City HallStation
12th-13thSt. Station
9th-10th St.Station
Walnut-LocustStation
34th St.Station
22nd St.Station
19th St.Station
15th St.Station
15th-16th St.Station
8th St.Station
Lombard-SouthStation
Race-Vine Station Chinatown
Station
Spring GardenStation
Spring GardenStation
13th St. Station
11th St.Station 5th St/
IndependenceHall Station
2nd StStation
JeffersonStation
AMTRAK30th Street
Station
City HallStation
12th-13thSt. Station
9th-10th St.Station
Walnut-LocustStation
34th St.Station
22nd St.Station
19th St.Station
15th St.Station
15th-16th St.Station
8th St.Station
Lombard-SouthStation
Race-Vine Station Chinatown
Station
Spring GardenStation
Spring GardenStation
13th St. Station
11th St.Station 5th St/
IndependenceHall Station
2nd StStation
JeffersonStation
95
76
676
76
95
30
O4 09 12
Market-Frankford Line to 69thStreet Transportation Center
11 Darby Transportation Center13 Yeadon/Darby Transportation Center34 61st-Baltimore36 80th-Eastwick
Trolley Routes10, 11, 13, 34, 36
Airport,Media/Elwyn,
Wilmington/NewarkLines
SEPTARegional Rail Lines
AMTRAK service toBaltimore and
Washington, DC
AMTRAK service toBaltimore and
Washington, DC
AMTRAK service to New York, Boston, Montreal, Harrisburg, Pittsburgh and Chicago
NJ Transit service to Atlantic City
10 63rd-Malvern
Trolley
Ro
utes
11,1
3,34
,36
Chestnut Hill East,
Fox Chase,Lansdale/
Doylestown,Manayunk/Norristown,Warminster,West Trenton
Lines
SEPTA Regional Rail Lines
Market-Frankford Line to 69thStreet Transportation Center
PATCO High Speed Line
PATCO High Speed Line
11 Darby Transportation Center13 Yeadon/Darby Transportation Center34 61st-Baltimore36 80th-Eastwick
Trolley Routes10, 11, 13, 34, 36
Trolley Route 10
Broad-Ridge Spur to Fern Rock T.C.Bro
ad S
tree
t Lin
e to
Fer
n Ro
ckTr
ansp
orta
tion
Cent
er
AMTRAK service to New York, Boston, Montreal, Harrisburg, Pittsburgh and Chicago
NJ Transit service to Atlantic City
SOCIETY HILL
OLD CITY
WASHINGTON SQUARE
RITTENHOUSE SQUARE
UNIVERSITY CITY
SOCIETY HILL
OLD CITY
WASHINGTON SQUARE
RITTENHOUSE SQUARE
17TH
ST
16TH
ST
UNIVERSITY CITY
1626 LOCUST STREET I 8 I EXECUTIVE SUMMARY
LEASE COMMITMENT FROM THE GLOBALLEADER IN SHARED WORKSPACE SOLUTIONS
LONG TERM, SECURE CASH FLOWOne hundred percent (100%) of the Offering’s rentable square footage is leased to RGN - Philadelphia IX, LLC, a subsidiary to Regus, the world's largest provider of flexible work solutions to some of the most successful entrepreneurs, individuals, and multi-billion-dollar corporations. Found in 1989, Regus has a network that includes 3,000 business centers, spanning almost 900 cities across 120 countries, and is considered one of, if not the first, companies worldwide to offer and market shared office spaces.
Spaces is Regus' modernized creative office concept. Since first opening in the Netherlands in 2008, Spaces has seen rapid growth and now has offices in Europe, the Americas, Asia & Pacific, and Africa. With over 12 years of lease term and a corporate guaranty from Spaces' parent company Regus, this Offering provides qualified investors a long term, secure income stream from a high-quality tenant.
$2.34B 2017 REVENUE
2.5MMEMBERS
3,094LOCATIONS
1,000+CITIES
110+COUNTRIES
REGUS BY THE NUMBERS
I 1626 LOCUST STREET EXECUTIVE SUMMARY I 9
P H I L A D E L P H I A I SA G L O B A L D E S T I N AT I O N
6M+PERMANENTRESIDENTS
2NDMOST POPULOUS
CBD IN THENATION
11YEARS OF
CONSECUTIVEPOPULATION GROWTH
12FORTUNE 500
COMPANY HEADQUARTERS
1STWORLD HERITAGE
CITY INTHE U.S.
42M+TOURISTS
ANNUALLY
4THLARGEST MEDIA
MARKET IN THE U.S.
#1HIGHEST WAGE
GROWTH AMONGU.S. CITIES
Take Note
CONFIDENTIALITY I 10
© 2019 Holliday Fenoglio Fowler, L.P. (“HFF”) a Pennsylvania licensed real estate broker.
This Offering Memorandum has been prepared by Holliday Fenoglio Fowler, L.P. (“HFF”) for use by a limited number of parties and has been obtained from sources believed reliable. While we do not doubt its accuracy, we have not verified it, and make no guarantee, warranty or representation about it. It is your responsibility to confirm, independently, its accuracy and completeness. All projections have been developed by HFF, Owner and designated sources, are based upon assumptions relating to the general economy, competition, and other factors beyond the control of Owner, and therefore are subject to variation. No representation is made by HFF or Owner as to the accuracy or completeness of the information contained herein, and nothing contained herein is or shall be relied on as a promise or representation as to the future performance of the property. Although the information contained herein is believed to be correct, Owner and its employees disclaim any responsibility for inaccuracies and expect prospective purchasers to exercise independent due diligence in verifying all such information. Further, HFF, Owner and its employees disclaim any and all liability for representations and warranties, expressed and implied, contained in, or for omissions from, the Offering Memorandum or any other written or oral communication transmitted or made available to the recipient. The Offering Memorandum does not constitute a representation that there has been no change in the business or affairs of the property or Owner since the date of preparation of the Offering Memorandum. Analysis and verification of the information contained in the Offering Memorandum is solely the responsibility of the prospective purchaser.
Additional information and an opportunity to inspect the property will be made available upon written request to interested and qualified prospective investors. Owner and HFF each expressly reserve the right, at their sole discretion, to reject any or all expressions of interest or offers regarding the property and/or terminate discussions with any entity at any time with or without notice. Owner shall have no legal commitment or obligations to sell the property to any entity reviewing this Offering Memorandum or making an offer.
This Offering Memorandum and the contents, except such information, which is a matter of public record or is provided in sources available to the public, are of a confidential nature. By accepting this Offering Memorandum, you agree that you will hold and treat it in the strictest confidence, that you will not photocopy or duplicate it, that you will not disclose this Offering Memorandum or any of the contents to any other entity (except to outside advisors retained by you, if necessary, for your determination of whether or not to make a proposal and from whom you have obtained an agreement of confidentiality) without the prior written authorization of Owner or HFF and that you will use the information in this Offering Memorandum for the sole purpose of evaluating your interest in the property and you will not use the Offering Memorandum or any of the contents in any fashion or manner detrimental to the interest of Owner or HFF. If you have no interest in the property, please return the Offering Memorandum forthwith.
1700 MARKET STREET, SUITE 3232 | PHILADELPHIA, PA 19103 | HFFLP.COM
THISIS
SPACES.
E XCLUS IVE MARKET ING ADV ISOR SINVESTMENT ADVISORS
DOUG RODIOSenior Managing Director
BRETT SEGALManaging Director
MARC MANDELManaging Director
STEVE SCHRENKDirector
DEBT ADVISORS ANALYTICS
RYAN ADEManaging Director
NEIL CAMBPELLDirector
ADAM GOSSReal Estate Analyst