A joint venture between CSB Holdings and Tide Realty Capital has secured $50 million in financing for a recently acquired office tower in Philadelphia. Citadel Credit Union provided the loan for the 29-storey office building at 2000 Market Street in Philadelphia's Center City district.
CSB and Tide Realty acquired the property last year for $45.5 million, representing a 64 percent discount from the previous owner, Nahla Capital. This acquisition was part of a value-add strategy. The refinancing serves to pay off a previous acquisition loan from Maxim Capital and to provide a $14 million credit reserve for future leasing activities.
Property Details and Market Assessment
Two50 Capital, with a team led by Adrian Edery, arranged the transaction. The property, with a total area of 668,335 square feet, was 68 percent occupied at the time of acquisition. Existing tenants had a weighted average lease term of 5.5 years, as reported by the Philadelphia Business Journal at the time.
Nahla Capital had purchased the building, constructed in 1973, in 2018 in partnership with a division of Goldman Sachs for $125.4 million. Adrian Edery, Principal at Two50 Capital, noted that the new ownership has increased the property's occupancy rate to approximately 77 percent by signing key lease extensions over the past year. Anchor tenants include the law firm Marshall Dennehey and the Board of Pensions of the Presbyterian Church.
Strategic Alignment in the Office Market
Adrian Edery commented on the market situation: “Given the sensitivity of office markets regarding lender appetite, we are selective about which operators we represent and for which assets we arrange financing.” He further stressed that they intend to place financing for Class A and Class B buildings in top markets that show genuinely positive absorption with the right strategy.
The parties involved, Citadel Credit Union, CSB Holdings, and Tide Realty Capital, did not provide further comments at the time of publication.
