Jones Apparel Group’s HQ Building
96,000 square foot office
Institutional owner Lexington Property Trust, who bought and redeveloped the property from an old industrial building into a two story office building for Jones Apparel Group in 1996, was looking to redeploy capital into markets outside of Philadelphia. Located in Keystone Industrial Park, 180 Rittenhouse Circle represented one of their last remaining assets in the region. In the face of the credit crunch, we recommended Lexington do something to enhance the attractiveness of the property in order to offset rising CAP rates and declining property values. We suggested they attempt to extend the lease term from its original 5 year term to 10 years, and offered some negotiating leverage with Jones Apparel Group in order to get this successfully accomplished. Once a ten year deal was in place, we sourced another institutional buyer out of Chicago to buy the building. The deal successfully closed in the midst of the financial market meltdown.