Brandywine Finds Partner For 29-Story Apt. Tower At 1919 Market St.

Map of Pennsylvania highlighting Philadelphia County (Photo credit: Wikipedia)

Brandywine Realty Trust, the Radnor company that is the dominant office landlord in Center City, says it has a partner and detailed plans to build a 29-story, 321-apartment, $140 million tower on the grassy lot it controls at 1919 Market St. in Center City. The tower will also feature 24,000 sq. ft. of commercial space, mostly leased to Independence Blue Cross (IBC) and the CVS drugstore chain. Statement here.

Brandywine’s 50-50 joint venture partner for 1919 Market is Berwyn-based LCOR CalSTERS, a successor to the former Linpro Co., which now manages property investments for the California State Teachers Retirement System. The partners arranged to borrow $88.9 million for the project, pricing the credit at Libor plus 2.25%. Equity investment is $59.2 million, split by the two partners; Brandywine’s half includes the $13 million value of the land. The company projects a cash yield (rent/cost) of 7% a year (vs 8% for Brandywine’s $385 million FMC office/apartment tower, and 7.6% at Brandywine’s $158 million Evo apartment project, both in University City).

Read more at http://www.philly.com/philly/blogs/inq-phillydeals/New-29-story-tower-proposed-for-1919-Market-St-.html#bOWzSHLeSA7BBpJU.99

Deal Will Keep Sunoco’s Philadelphia Refinery Operating

Sunoco Inc.‘s Philadelphia refinery, which was threatened with closure at the end of this month, will be reborn as an “energy hub.”

The Carlyle Group, a Washington, D.C., private-equity manager, announced plans Monday to operate the refinery with Sunoco as a joint venture called Philadelphia Energy Solutions. The venture will save 850 jobs at the refinery, the largest fuel-production plant in the northeastern United States, and may employ hundreds more if plans to expand production are realized.

Carlyle officials say they are “reimagining” the business to exploit new, cheaper domestic sources of crude oil to replace expensive imported petroleum, a major reason the refinery was uncompetitive. In September, Sunoco announced plans to exit refining and to sell or shut down the plant this summer, saying it was losing a million dollars a day on fuel production.

Carlyle, which will have a majority interest in the venture and operate the refinery, also plans to increase dramatically the use of low-priced natural gas from Pennsylvania’s booming Marcellus Shale region to reduce refining costs and emissions.

Read more: http://www.philly.com/philly/news/breaking/20120702_Deal_reported_to_keep_Sunoco_s_Philadelphia_refinery_operating.html