A Multiphase Historic Renovation Returns Record Sale Price
Digital Realty, Philadelphia, PA—Development Management

When Lehman Brothers purchased 833 Chestnut Street in 1998, they chose our team to manage the then-27% occupied office building. We created a redevelopment plan with phased infrastructure improvements and signed a new 80,000SF tenant. Over the next three years we

  • Completed an initial $42 million renovation with new electrical and mechanical systems
  • Restored the historic masonry exterior
  • Recreated historic cast iron storefronts
  • Redesigned common areas and finishes
  • Signed over 500,000SF in small individual leases to new tenants, including medical office, back office, LEED-certified tenants and data centers, redesigning and dramatically expanding mechanical and electrical systems to accommodate data center needs

Building exponential profit, one management decision at a time
To finance the project, we secured a first mortgage, obtained a $7 million historic tax credit, and negotiated a $10 million tax abatement. We consistently achieved tenant satisfaction well above the industry averages, while accommodating a diverse tenant base with everything from medical offices treating prisoners to high security data centers operating around the clock. We brought the building to 90% occupancy. In 2015, it broke citywide records when it sold for $161 million, the highest price ever achieved for an occupied office building in Philadelphia.

Read More