The owners of Centre Square have successfully negotiated with the city to reduce the property tax assessment on the challenged office complex by $113 million for the current year, while the two-building site remains in receivership with declining occupancy levels.

The assessed value of this Center City property, initially set at $362.6 million, will undergo revisions for both the 2023 and 2024 tax years. The Board of Revision of Taxes for the city has granted approval for a 33% reduction in Centre Square’s property tax assessment to $250 million for 2024 and a 24% drop to $275 million for 2023.

At Philadelphia’s property tax rate, Centre Square’s owners, Nightingale Properties and Wafra Capital Partners, are now obligated to pay approximately $3.85 million in property taxes for 2023 and $3.5 million for 2024. This marks a reduction from the $5.1 million in taxes that would have been owed in each of the two years had the assessment remained unchanged. The adjusted figures result in a combined savings of over $2.8 million for the property owners.

*Article courtesy of Philadelphia Business Journal

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