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 17TH STREET 16TH
ESTIMATED LEASE START DATE JULY 1, 2019
LEASE TERM 12 YEARS, 10 MONTHS WALNUT STREET BROAD STREET 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 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 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. 11th St. 8th St. Street Transportation Center 19th St. 15th St. lines providing immediate5th St/ accessibility2nd St to the entire Ranstead St Station Station City Hall Station Station Station Station Station Independence Chestnut St Chestnut St city and its surroundingHall Station suburbs. Amtrak’s 30th Street
33rd St
6 Station, the third busiest stop along the nation’s
3 , UNIVERSITY 21st St
4 11 Darby Transportation 3 23rd St Walnut St , Center Walnut St 3 CITY 1 13 Yeadon/Darby Northeast rail corridor, is also just a short walk away.
,
1 Transportation Center 1 93Walnut- 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 Washington, DC BIKE SCORE 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
AvenAvenue of the Arts
I 1626 LOCUSTLombard St STREET 17TH ST 16TH ST 16TH ST EXECUTIVE SUMMARY I 7 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 ea in H l L ai l R na Pember ton St io Airport, Monroe St eg Fitzwater St A R Media/Elwyn, T Clymer St t
P Fawn St SE Wilmington/Newark St Albans St 21st St S Clymer St Iseminger St d Fitzwater St
St Clifton St 10th St Lines Fulton o
o Jessup St
Uber St Mar tin St Mole St Hicks St Sar tain St Catharine St Juniper St Dar ien St 13th St 12th St 11th St Catharine St Kauffman St 7th St ew Randolph Pl Fulton St Dorr ance St Cle veland St Webster St s
o Webster St 95
R 20th St Delhi St Schell St 19th St P ercy St Christian St 18th St Christian St Hall St Kauffman St Salter Christian St Montrose St St Passyunk Av Reese St Queen St 16th St 17th St 23rd St 22nd St 24th St O4 09 12 15th St
SEPTA: LEASE COMMITMENT FROM THE GLOBAL LEADER IN SHARED WORKSPACE SOLUTIONS
LONG TERM, SECURE CASH FLOW One 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.
REGUS BY THE NUMBERS $2.34B 2.5M 3,094 1,000+ 110+ 2017 REVENUE MEMBERS LOCATIONS CITIES COUNTRIES
8 I EXECUTIVE SUMMARY 1626 LOCUST STREET I PHILADELPHIA IS A GLOBAL DESTINATION
+ 2ND 11 12 6M MOST POPULOUS YEARS OF FORTUNE 500 PERMANENT CBD IN THE CONSECUTIVE COMPANY RESIDENTS NATION POPULATION GROWTH HEADQUARTERS
1ST + #1 4TH WORLD HERITAGE 42M HIGHEST WAGE LARGEST MEDIA TOURISTS CITY IN GROWTH AMONG MARKET IN ANNUALLY THE U.S. U.S. CITIES THE U.S.
I 1626 LOCUST STREET EXECUTIVE SUMMARY I 9 Take Note
© 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.
CONFIDENTIALITY I 10 THIS IS SPACES.
EXCLUSIVE MARKETING ADVISORS
INVESTMENT ADVISORS DOUG RODIO BRETT SEGAL MARC MANDEL STEVE SCHRENK Senior Managing Director Managing Director Managing Director Director 484.532.4205 484.532.4174 484.532.4212 484.532.4213 [email protected] [email protected] [email protected] [email protected]
DEBT ADVISORS ANALYTICS RYAN ADE NEIL CAMBPELL ADAM GOSS Managing Director Director Real Estate Analyst 484.532.4209 484.532.4176 484.532.4178 [email protected] [email protected] [email protected]
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