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Philadelphia, Pennsylvania PHILADELPHIA, PENNSYLVANIA RITTENHOUSE SQUARE | 48,000 SF SINGLE TENANT OFFICE | 12+ YEARS OF TERM | CORPORATE GUARANTY EXECUTIVE SUMMARY THE OPPORTUNITY Holliday 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 CANDIDATE 1626 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. I 1626 LOCUST STREET EXECUTIVE SUMMARY I 3 1626 LOCUST STREET, PHILADELPHIA, PA RITTENHOUSE SQUARE SIZE (SF) 48,069 THE COMCAST THE COMCAST SUBURBAN STATION TECHNOLOGY CENTER CENTER JFK BOULEVARD YEAR BUILT 1960 MARKET STREET YEAR RENOVATED 1989 / 2019 PHILADELPHIA CITY HALL CLARENCE S. THALHEIMER ARCHITECTS DAVID D. WEITZ CHESTNUT STREET CURRENT OCCUPANCY 100% 17TH STREET 16TH STREET ESTIMATED LEASE START DATE JULY 1, 2019 LEASE TERM 12 YEARS, 10 MONTHS WALNUT STREET BROAD STREETBROAD RITTENHOUSE YEAR 1 RENTAL INCOME $1,562, SQUARE PARK 243 LOCUST STREET ANNUAL ESCALATIONS 2% RGN - NATIONAL BUSINESS ACADEMY OF MUSIC LEASE GUARANTY CENTERS, LLC SPRUCE STREET 4 I EXECUTIVE SUMMARY 1626 LOCUST STREET I RITTENHOUSE SQUARE SIZE (SF) 48,069 YEAR BUILT 1960 ONE OF FIVE ORIGINAL PHILADELPHIA’S MOST YEAR RENOVATED 1989 / 2019 SQUARES PLANNED SOUGHT AFTER NEIGHBORHOOD 1626 Locust Street is situated in Philadelphia’s most sought after, upscale CLARENCE S. THALHEIMER ARCHITECTS DAVID D. WEITZ BY CITY FOUNDER neighborhood: Rittenhouse Square. Located between Market and Pine WILLIAM PENN IN THE Streets from 15th to 24th streets, the neighborhood is occupied by CURRENT OCCUPANCY 100% luxury hotels, high-end office and retail space, as well as world-renowned LATE 17TH CENTURY, restaurants. This highly coveted location offers energetic nightlife and an ESTIMATED LEASE START DATE JULY 1, 2019 RITTENHOUSE SQUARE IS extensive array of art and culture providing entertainment options, all just steps from the Offering. Residents of Rittenhouse Square consistently LEASE TERM 12 YEARS, 10 MONTHS THE HEART OF CENTER choose to live and work in this neighborhood, taking advantage of the area’s unrivaled cultural and lifestyle amenities, proximity to the YEAR 1 RENTAL INCOME $1,562,026 CITY’S MOST EXCLUSIVE Philadelphia MSA’s densest office submarket, and direct access to a variety NEIGHBORHOOD. of transportation options. ANNUAL ESCALATIONS 2% RGN - NATIONAL BUSINESS LEASE GUARANTY CENTERS, LLC I 1626 LOCUST STREET EXECUTIVE SUMMARY I 5 PREMIER LOCATION IRREPLACEABLE UNDERLYING PHYSICAL PROPERTY Originally 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. 6 I EXECUTIVE SUMMARY 1626 LOCUST STREET I EXCELLENTMarket-Frankford Line Broad StreetACCESSIBILITY Line and Trolley Lines (end of route) Regional Rail Lines SEPTA Bus Route Station Subway Elevated Station Broad-Ridge Spur Station Tunnel Street Center City Station Station PATCO High Speed Line SC Pennsylvania Ave Chestnut HU YL Hill East, KI LL B Fox Chase, r oa Lansdale/ Shedwic k St d Doylestown, Spring Garden St -R Fairmount id Manayunk/ Av g e Norristown, Melon St S p Spring Spring ur Warminster, Garden West Trenton S Wallace St Garden to F E e Lines P Station r Station T Mt Vernon St 32nd St n National St A Douglas St R Haverford Av o 5th St c R Transportation Center Transportation k e 6th St Benjamin Franklin Pkwy T. g C i . o Napa Broad Street Line to Fern Rock n 76 18th St a St l Brandywine St Ridge Av 16th St R AMTRAK a i Spring Garden St l Y service to L EXPW 35th St i T n E S New York, e IN s Hamilton St St Broad V Boston, VINE ST EXPRESSWAY Montreal, 30 676 Vine St Baring St Harrisburg, 36th St LOGAN Race-VineRace-Vine F RANKLIN Spangler St Pittsburgh and Pearl St Chinatown SQUARE 34th St Station Chicago SQUARE Station PATCO High Speed Line Powelton Av Race St 33rd St NJ Transit 95 22nd St 23rd St 10 63rd-Malvern service to 21st St PPennsylvaniaennsylvania CoConventionnvention Center Cherry St Atlantic City Trolley Route 10 Trolley Lancaster Av Arch St 2nd St Arch St 9th St 34th St Arch St Warren St AMTRAK Jefferson 30th Street JFK Blvd OLD Filbert St Station 34th St. Station 22nd St. Trolley Routes CITY Market St Station 10, 11, 13, 34, 36 MARKET STREET Station MARKET STREET Market-Frankford Line to 69th Ludlow St 13th St. 11th St. 8th St. Street Transportation Center 19th St. 15th St. 5th St/ 2nd St Ranstead St Station Station City Hall Station Station Station Station Station Independence Chestnut St Chestnut St Hall Station 33rd St 6 3 , UNIVERSITY 21st St 4 11 Darby Transportation 3 23rd St Walnut St , Center Walnut St 3 CITY 1 13 Yeadon/Darby , 1 Transportation Center 1 Walnut-Walnut- RITTENHOUSE 15th-16th St. s 34 61st-Baltimore AMTRAK service to Locust e t 36th St 36 80th-Eastwick MARKETLOCUST STREETSTREET SQUARE Station Station PATCO High Speed Line u Baltimore and WASHINGTON o WWashington,ashington, DC R Rittenhouse Sq 12th-13th 9th-10th St. SQUARE ey ts oll St. Station Station r Ar T Spruce St RITTENHOUSE Spruce St 76 SQUARE WASHINGTON SOCIETY Broad St ue of the SQUARE HILL en v AAvenue of the Arts Lombard St 17TH ST 16TH ST 16TH ST Osler Cir Con vention A v Lombard-South Station r D South St s South St ce en ci Civic Center Blvd S s lth e Market-Frankford Line Broad Street Line and Trolley Lines (end of route) Regional Rail Lines SEPTA Bus Route ea in H l L ai l R Station Subway Elevated Station Broad-Ridge Spur Station Tunnel Street Center City Station Station na Pember ton St PATCO High Speed Line io Airport, Monroe St eg Fitzwater St A R Media/Elwyn, T Clymer St t P Fawn St SC SE Wilmington/Newark Pennsylvania Ave St Albans St 21st St S Chestnut Clymer St Iseminger St H d Fitzwater St St Clifton St U 10th St Y Lines Fulton o Hill East, o L Jessup St Uber St Mar tin St Mole St Hicks St Sar tain St K Catharine St Juniper St Dar ien St I 13th St 12th St 11th St Catharine St LL Kauffman St B Fox Chase, 7th St r ew Randolph Pl Fulton St Dorr ance St Cle veland St Webster St oa s Lansdale/ o Webster St 95 Shedwic k St d R Spring Garden St 20th St Delhi St Doylestown, Schell St 19th St P ercy St Christian St 18th St Christian-R St Fairmount id Manayunk/ Hall St Kauffman St Av g Salter Christian St Montrose St e Norristown, St Passyunk Av Reese St Queen St 16th St 17th St 23rd St 22nd St S Melon St 24th St Spring O4 09 12 p Warminster, Spring 15th St ur Garden West Trenton S Wallace St Garden to F E e Lines P Station r Station100 T Mt Vernon St 32nd St n National St R A HaverfordDouglas St Av o 5th St c R Transportation Center Transportation k e 6th St Benjamin Franklin Pkwy T. UNMATCHEDg COMMUTER ACCESS C i WALK SCORE o . Napa Broad Street Line to Fern Rock n 76 18th St a St Brandywine St Ridge Av l 16th St 1626 LocustR Street's ideal location places its tenants AMTRAK a i Spring Garden St l Y service to SEPTA: L EXPW 35th St i T withinn 350E S feet of Patco's 15/16th Locust Street New York, e IN s Hamilton St St Broad V Boston, VINE ST EXPRESSWAY Montreal, 30 676 Station and 3 blocks from SEPTA'sVine St Walnut-Locust Baring St Harrisburg, 36th St LOGAN Race-VineRace-Vine FRANKLIN Spangler St Pittsburgh and Station. In addition to its extremely walkable location, Pearl St Chinatown SQUARE 34th St Station Chicago SQUARE Station PATCO High Speed Line Powelton Av Race St the Property offers convenient access to all major 33rd St NJ Transit 95 22nd St 23rd St 10 63rd-Malvern service to 21st St PPennsylvaniaennsylvania CoConventionnvention Center arterial roadways of the region, including Interstates Cherry St Atlantic City 100 Trolley Route 10 Trolley Lancaster Av Arch St 2nd St Arch St 9th St 34th St 76, 95 and 676.Arch St 1626 Locust Street’s central location Warren St AMTRAK TRANSIT SCORE Jefferson 30th Street JFK Blvd provides multiple forms OLDof public transportation, Filbert St Station 34th St. Station 22nd St. Trolley Routes CITY Market St Station 10, 11, 13, 34, 36 MARKET STREET Station includingMARKET numerous STREET bus, subway, and regional train Market-Frankford Line to 69th Ludlow St 13th St.
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