After acquiring a significant portion of the debt on the historic Wanamaker building, TF Cornerstone is now attempting to take control of the Center City office space from its owner, Rubenstein Partners. With the New York-based developer now in possession of the loan, the foreclosure situation has changed. Instead of being managed by a commercial mortgage-backed securities (CMBS) trust focused on generating investor returns, the debt is now owned by a developer who may see greater potential in obtaining the building’s office floors.TF Cornerstone already holds ownership of the Wanamaker’s 435,000-square-foot retail space, including Macy’s, which it acquired for $40 million in 2019. The remaining 954,363 square feet—consisting of office space from floors 4 through 12, along with a 660-space underground parking garage—remains under Rubenstein’s ownership and serves as collateral for the firm’s $124 million mortgage.

Located at 1300 Market St., across from City Hall, the Wanamaker building highlights the struggles facing Philadelphia’s office market, which have worsened with the rise of remote and hybrid work models following the Covid-19 pandemic. The building was placed under receivership in September 2023, and its office occupancy has sharply declined from 96% in 2020 to just 23%, based on CMBS and receiver data.

*Article courtesy of Philadelphia Business Journal

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