22 April 2016

Zurich buys Philadelphia office building for $41m

Zurich Insurance has acquired 2.0 University Place in Philadelphia for $41.25m, with an implied rate of $438 per square-foot.

Certified to the highest LEED (leadership in energy and environmental design) level, the office building was fully leased at the time of the sale. The US Department of Homeland Security, Citizenship and Immigration is the anchor tenant, occupying three floors of the five-story building.

According to local newswire Philly.com, this is one of the highest purchase prices ever for a commercial property in the city.

Scott Mazo, principal of University Place Associates, the developer, said it will soon proceed with the construction of 3.0 University Place, a commercial office building near 2.0 University Place.

Alessandro Bronda, head of global real estate investment strategy at Zurich Insurance Group, told IAR last year that the insurer's real estate portfolio was expected to increase.