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Citadel Credit Union backs $50M refi for Philly office tower
The $50 million loan refinances a prior Maxim Capital acquisition loan and sets aside a $14 million credit reserve for future leasing.
Commercial Observer reports that a joint venture between CSB Holdings and Tide Realty Capital has closed a $50 million loan to refinance a Philadelphia office tower at 2000 Market Street in Center City.
The refi is intended to pay off a previous acquisition loan from Maxim Capital and to fund a $14 million credit reserve for future leasing, Commercial Observer says. The 29-story property totals 668,335 square feet and was 68 percent occupied at the time of the 2023 acquisition, with tenants carrying a weighted average lease term of 5.5 years.
Commercial Observer also reports that CSB and Tide Realty bought the building last year for $45.5 million, a 64 percent discount from Nahla Capital, as part of a value-add strategy. Two50 Capital principal Adrian Edery said the new ownership has lifted leasing occupancy to around 77 percent after securing major renewals over the past year, with tenants including law firm Marshall Dennehey and the Board of Pensions of the Presbyterian Church.
In prepared remarks, Edery said the parties are deliberate about which operators they represent and which assets they finance because office debt markets are sensitive to lender appetite, with an emphasis on Class A and B buildings in top markets with positive absorption, Commercial Observer reports. Citadel Credit Union, CSB Holdings, and Tide Realty Capital did not immediately respond to requests for comment.