Philadelphia, PA, March 27, 2008 – In the city’s largest building sale of the year, a private partnership led by Peter C. Soens and Jeffrey R. Seligsohn, Principals of SSH Real Estate, and Michael F. Young of Young Capital, announced today the purchase of 123 South Broad Street in Philadelphia from American Financial Realty Trust for a purchase price of $57.7 million or $92 per square foot.

Known as “The Fidelity Building,” the property is one of Philadelphia’s most iconic office towers—having achieved widespread notoriety when it was featured prominently as the “Duke & Duke” building in the 1983 blockbuster film Trading Places starring Eddie Murphy. The building is also on the United States’ National Register of Historic Places.

The property is comprised of 626,594 square feet and includes the unit encompassing floors 6–30 of 123 South Broad Street, and floors 6–11 of the adjacent Witherspoon Building. Paul Feaster, Director of Acquisitions for SSH Property Group, the investment division of SSH Real Estate, represented the buyer in-house. Adam J. Spies of Eastdil Secured represented the seller.. SSH Real Estate will act as the exclusive leasing and management agent for the building.

“With the recent volatility in the credit markets, acquiring a building of this size in a very tight timeframe was a major challenge, and is a testament to the ability of our acquisition team and the strength of our partnership,” noted Peter Soens, principal of SSH Real Estate.

“This acquisition is another major step in our growth strategy of acquiring quality Class B office buildings in Class A locations where we can creatively add value through our in-house leasing and management efforts,” added Jeff Seligsohn, principal of SSH Real Estate.

About 123 South Broad Street

123 South Broad is one of the 10 largest buildings in Philadelphia. The property is prominently located just two blocks from City Hall on the “Avenue of the Arts,” comprising the entire Broad Street block from Sansom to Walnut Streets. Constructed in 1927, the building was originally known as the Fidelity-Philadelphia Trust Company Building. It’s distinctive ‘beaux arts’ architecture, coupled with its long history, make it one of the most famous office buildings in the city. Located in the heart of Philadelphia’s premier and growing arts & entertainment district, 123 South Broad is surrounded by some of the city’s finest restaurants, retail shops and cultural attractions, including the Kimmel Center for the Performing Arts and the Academy of Music. It is also adjacent to several new residential developments on or near the Avenue of the Arts including the Residences at The Ritz Carlton and Symphony House among others.

123 South Broad’s flexible floor plate can accommodate both small and large tenants and offers a tremendous window ratio, abundant natural light and spectacular views. The building also has direct concourse access to the Broad Street Line with underground access to the entire SEPTA regional and subway train system. While the building has been extremely well maintained and has recently undergone renovations including new elevators, and upgrades to the common corridors and bathrooms, ownership plans to make additional capital and cosmetic improvements. Plans also include providing new amenities to the building, such as a Conference Center and Fitness Center.

The building is currently 79% occupied. Its largest tenant, Wachovia, occupies 30% of the building, followed by Montgomery, McCracken, Walker & Rhoads, one of Philadelphia’s largest law firms.

“There is significant value that will be realized once we successfully lease the 125,000 square feet of current vacancy in the building.. The occupancy rate for South Broad Street is over 95%, which is the highest of any submarket in the city. Therfore, we are confident that the remaining space will be leased very quickly. We are already in lease negotiations with several new tenants for 60,000 square feet, which is close to 50% of the current vacancy, and expect to reach the 95% level within the next 12 months,” stated Peter Soens.

About SSH Property Group

SSH Property Group is a subsidiary of SSH Real Estate. It was formed to pursue the company’s entrepreneurial growth strategy of acquiring prominent buildings that fit its long-term investment criteria. With the acquisition of more than 1.6 million square feet of commercial office space, primarily in central Philadelphia, SSH Property Group has added these investments to its considerable expertise and resources in property management and its 50-year history as a commercial real estate brokerage company. The company’s success as a broker and property management company naturally led to these investment opportunities, and solidifies the company as one of the leading experts in the Philadelphia office market.

SSH has retained an occupancy level of over 95% within their office portfolio, which includes seven recently acquired buildings in Philadelphia, including 230 South Broad Street, a 22-story, 215,000 square foot building just one block away at Broad & Locust Streets.

About SSH Real Estate

Led by Principals Jeffrey R. Seligsohn and Peter C. Soens, SSH Real Estate is a Philadelphia-based company offering comprehensive commercial real estate services. Complementing its longstanding brokerage and advisory service, the firm’s property management division, SSH Management LLC, manages over 4 million square feet of commercial property in the Philadelphia region, and SSH Property Group, the company’s investment division, partnership with Young Capital, currently owns approximately 1.6 million square feet of office buildings in Philadelphia and Washington, D.C. SSH has been a prominent commercial real estate firm in Philadelphia since 1954 through its predecessor Harold B. Hess Company, and in addition to its depth and expertise in the Philadelphia market, the firm has a national and global reach as an affiliate of TCN Worldwide, a consortium of leading, independent commercial real estate firms throughout the world.

Related Links:

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Philadelphia Business Journal

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