MRP Realty, developers and managers of commercial, residential, mixed-use and industrial real estate across the mid-Atlantic region, has recapitalized the firm’s four-property Philadelphia portfolio in a joint venture with the merchant banking division of Goldman Sachs.
The portfolio includes 400 Market St. with 181,587 square feet, 325 Chestnut St. at 206,816 square feet, The Bourse building at 305,922 square feet, and The Bourse Garage with 453 parking stalls. Since acquiring the properties in 2016, MRP has executed extensive capital improvements across the three office assets, including a full repositioning of the Bourse Food Hall, which opened in November of 2018.
“This portfolio of properties provides us a unique opportunity to control an irreplaceable block of class A office product across three recently renovated and repositioned assets that cater to diverse users,” said MRP’s Philadelphia managing director Charley McGrath. “As a historic submarket, the core area here has proven durability and ongoing viability — and the newly repositioned Bourse is Philadelphia’s only historic trophy office asset.”
The properties are located in the historic epicenter of Philadelphia on Fourth Street between Chestnut and Market streets in the Market Street East submarket. Adjacent to Independence Mall, they are within a burgeoning commercial area of 4.9 million square feet of class A office space across nine buildings. Current tenant mix includes technology, media, communications, law and retail industries, with the largest tenants MakeOffices and Entercom (CBS Radio).
As one of the top three metropolitan areas in the Northeast and the sixth largest city in the United States, Philadelphia is retaining an increasing number of graduates from its universities which attracts new employers to the city. Education and healthcare are the city’s main economic drivers, providing more than 33 percent of total employment, and Philadelphia’s economy is further diversified by the substantial presence of financial services, IT and life sciences industries.