Investment Platform At Work
1515 Market Street, Philadelphia, PA

Situation:
Twenty-story, Class "A" office building consisting of approximately 510,000 square feet located at one of the premier sites in the Market Street West submarket of the Central Business District of Philadelphia, Pennsylvania.

Five tenants, totaling 79,736 square feet, with expirations during the first twelve month hold period, in addition to 20,323 square feet of existing vacancy; Foreign institutional ownership that sought to redirect investment to other markets.

Action:
Investment opportunity began with the property's off-market negotiation at a competitive price structure. Stockton successfully acquired the asset by aligning with institutional co-investors and lenders based on consistent investment parameters and on their confidence in the Stockton platform. Stockton also introduced the building to the brokerage community with a new marketing campaign that promoted broker-friendly transactions focusing on leasing existing vacancies and near term expirations. Additionally, Stockton engaged in a proactive tenant retention program to ensure long term value and designed a capital improvement master plan for building entrances, lobby interior, restrooms, and common areas.

Result:
• Increased rental rates by approximately 20% from previous owner’s rates,
   while simultaneously converting the building from full service to a
   “plus electric” lease structure.

• Executed Lease Agreements/Amendments totaling 76,428 square feet
   of new tenants and expansions and 37,781 square feet of renewals
   during the first five months of ownership.

• Increased occupancy to 91.4% within the first five months.

• Achieved lower TIA/concessions and higher rental rates compared to
   the property’s competitive set of buildings.

• Creating an enduring new image for the building through ongoing renovations
   to the lobby entrance, lobby interior, common corridors, and restrooms.

View other “at work" examples:

• Landlord Advisory At Work
• Corporate Advisory At Work
• Tenant Advisory At Work