Equity Commonwealth completed the sale of its 84%-leased, 826,000-square-foot office tower at 1600 Market St. in Philadelphia for $160 million to real estate investment manager American Real Estate Partners, the Philadelphia Business Journal reported.
According to a Jan. 23 release, the office landlord expected to register roughly $156 million in proceeds from the divestment after certain adjustments.
The paper noted the 39-story office building in Center City has been the home of PNC Bank since 1995, adding that the tenant renewed 230,000 square feet of its 350,000-square-foot lease through May 2031. American Real Estate will be marketing 115,000 square feet of adjacent space at 2018-end. The incoming occupant will take up floors 28 through 32, according to the report citing a company statement.
The investment manager acquired the asset through its Strategic Office Fund II, alongside an unidentified long-time institutional partner.
HFF brokered the sale and oversaw the debt financing, the Feb. 15 report noted.