In a transaction that enables a major local government agency to remain in its headquarters for 11 years, the Redevelopment Authority of the City of Philadelphia (RDA) and two associates agencies, the Philadelphia Housing Development Corporation (PHDC) and Philadelphia Office of Housing and Community Development (OHCD), renewed their 70,000-square-foot lease on the 16th and 17th floors of 1234 Market Street.
A team from international commercial real estate services firm Studley represented the RDA in the 11-year deal. H. Hetherington Smith, senior vice president/branch manager, Catherine Pullen, corporate managing director and Charles Steelman, assistant director, diligently looked for alternative space within a two block radius of City Hall for the RDA.
Ultimately, however, the most cost-effective option was to remain in place, said Hether Smith, who further explained that Studley needed to obtain consensus from the Directors of Operations from all three agencies regarding the offices locations, which made the assignment all the more challenging.
Studley negotiated a robust lease renewal that includes substantial upgrades to the base building HVAC systems and that will provide the agencies with a cash allowance for much needed renovations to their existing space conditions.
Studley also arranged for the RDA, PHDC and OHCD to relocate to temporary swing space on the 20th floor of 1234 Market Street during the renovations.
“One of the other items on the RDA’s wish list was to support the mayor’s green initiatives by achieving LEED certification for the new space,” said David Thomas, Deputy Executive Director of the RDA. “We negotiated an agreement with SEPTA, the landlord, for base-building improvements, including retrofitting the property’s HVAC system that is designed to meet LEED standards, as well as achieving other significant sustainable concessions through the use of recycled furniture, low VOC paint and carpeting and energy efficient lighting fixtures.”
The RDA/PHDC & OHCD are now the building’s largest tenant after SEPTA.
Bill Vail, senior vice president, U.S. Equities Realty brokered the transaction in-house on behalf of the landlord.
Studley is the only global tenant advisory firm with a pure tenant representation delivery platform. Founded in 1954, Studley pioneered this conflict-free business model. Today, with 19 offices nationwide and an international presence through its London office and AOS Studley throughout Europe, Studley provides strategic real estate consulting services to top-tier corporations, law firms, nonprofits, government agencies and institutions of higher education. Information about Studley is available at www.studley.com.