Dealmaker: JLL Secures $118M for Office Towers

JLL, Chicago, secured $117.5 million for Keystone Property Group, Conshohocken, Pa., to purchase three downtown Philadelphia office assets called One Washington Square.

JLL Managing Directors Doug Rodio and Jim Galbally and Senior Vice Presidents John Plower and Erin Miller also represented seller Rubenstein Partners, Philadelphia, in the transaction. Senior Vice President Chad Orcutt led the financing efforts.

Orcutt noted that Keystone plans a value-add business plan. “With the continued demand for office space in Philadelphia, we are seeing more institutional capital available for strong sponsors to fund value-add projects,” he said.

Keystone Chief Investment Officer Chip Walters said the firm’s plans for the property include converting the ground-floor and mezzanine office space at 530 Walnut Street into retail space to leverage the Washington Square neighborhood’s growing pedestrian traffic. 

“With a limited supply of new product available and burgeoning residential and retail activity in submarkets like Washington Square and Independence Mall, investors are looking to adapt existing product to meet market demands,” Rodio said.

Comprising 510, 520 and 530 Walnut Street, One Washington Square totals 880,000 square feet. Both 530 and 520 Walnut Street are 20 stories tall while 510 Walnut Street has 10 stories. 

In Los Angeles suburb Valencia, Calif., JLL helped Clarion Partners, New York, sell a five-building industrial portfolio to LaSalle Investment Management, Chicago, for $64 million. 

Managing Directors Bo Mills and Mark Detmer and Executive Vice President Brad Koehler led the JLL team on the deal. 

“The Valencia Industrial Portfolio offered quality assets occupied by credit tenants in a market with great connectivity,” Mills said. “With a limited supply of Class A warehouse product in southern California and in-place rents below market value, this deal represented a prime opportunity for both the buyer and seller.”

The portfolio totals 491,500 rentable square feet and includes:

•       28150 W Harrison Parkway: 86,970 square feet
•       28145 W Harrison Parkway: 113,980 square feet 
•       28904-28912 Avenue Paine: 116,955 square feet 
•       24823 Anza Drive: 31,286 square feet
•       25045 Avenue Tibbitts: 142,392 square feet