Sovereign Capital Reiterates that 1818 Beneficial Bank Place is Financially Strong
SAN DIEGO, Jan. 8, 2015 /PRNewswire/ -- Despite recent reports of Chapter 11 bankruptcy filings by three former fractional owners of 1818 Beneficial Bank Place (1818 Market Street), Sovereign Capital Management Group, Inc. restates that the Center City Philadelphia trophy asset remains on solid financial footing with occupancy rates of more than 90%. Currently, the 37-story, Class-A office building (located in the prestigious West of Broad office submarket in Philadelphia), is in escrow for sale to San Francisco-based Shorenstein Properties.
Prior to Sovereign's investment in the property in 2012, 1818 Market Street, which is located just two blocks from Philadelphia's renowned Rittenhouse Square, was suffering from low occupancy levels and a lack of capital. Sovereign implemented a disciplined turnaround strategy and partnered with the tenant-in-common or fractional owners of the building to recapitalize the asset. By the spring of 2013, regional bank-holding company Beneficial Mutual Bancorp and national retailer Five Below had both selected the gleaming white granite and glass tower as their new corporate headquarters.
Following the stabilization and revitalization of 1818 Beneficial Bank Place, a plan was implemented by the ownership group for asset disposition. Shortly thereafter, three of the 34 fractional owners of the building breached their fiduciary obligations by attempting to interfere with the rights of the majority owners to sell. As a direct result of these actions, a California arbitrator was asked to determine if the disposition plan of the asset management group was appropriate. On December 16, 2014, that same California arbitrator ruled that all activities undertaken by management were both acceptable and suitable.
"It's unfortunate that these three former fractional owners have made the reckless decision to file a bad-faith bankruptcy in hopes of increasing their economic benefits," remarked Sovereign's CEO, Todd A. Mikles. "We continue to be pleased with the remarkable turnaround at 1818 and the pending sale to Shorenstein Properties."
About Sovereign Capital Management Group, Inc.
Established in 1999, Sovereign Capital is a leading private equity real estate firm based in San Diego, California. Over the last decade, Sovereign is proud to have completed more than $5 billion in commercial real estate transactions. For more information, please visit: www.sovcapital.com.
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SOURCE Sovereign Capital Management Group
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