MRP Realty (MRP), developers and managers of commercial, residential, mixed-use, and industrial real estate across the Mid-Atlantic region, announced today its recapitalization of the firm’s four-property Philadelphia portfolio in a joint venture with the Merchant Banking Division of Goldman Sachs.

The portfolio includes 400 Market Street with 181,587 square feet, 325 Chestnut Street at 206,816 square feet, The Bourse building at 305,922 square feet, and The Bourse Garage with 453 parking stalls. Since acquiring the properties in 2016, MRP has executed extensive capital improvements across the three office assets, including a full repositioning of the Bourse Food Hall, which opened in November of 2018.

“This portfolio of properties provides us a unique opportunity to control an irreplaceable block of Class A office product across three recently renovated and repositioned assets that cater to diverse users,” said MRP’s Philadelphia Managing Director Charley McGrath. “As a historic submarket, the core area here has proven durability and ongoing viability – and the newly repositioned Bourse is Philadelphia’s only Historic Trophy Office Asset.”

400 Market Street with The Bourse and Bourse Garage

The properties are located in the historic epicenter of Philadelphia on 4th Street between Chestnut Street and Market Street in the Market Street East submarket. Adjacent to Independence Mall, they are within a burgeoning commercial area of 4.9 million square feet of Class A office space across nine buildings. Current tenant mix includes technology, media, communications, law, and retail industries, with the largest tenants MakeOffices and Entercom (CBS Radio).

The Bourse (Photos courtesy of MRP Realty)

As one of the top three metropolitan areas in the Northeast and the sixth largest city in the U.S., Philadelphia is retaining an increasing number of graduates from its universities which attracts new employers to the City. “Eds and Meds” are the City’s main economic drivers, providing over 33% of total employment, and Philadelphia’s economy is further diversified by the substantial presence of financial services, IT, and life sciences industries.

About MRP Realty

Founded in 2005, MRP Realty is a real estate operating company focused on opportunistic and value-add investment in the northeastern United States, with offices in Washington, D.C., Maryland, Virginia, Pennsylvania, and New York City. MRP provides to its institutional capital partners a full array of real estate services including: acquisition/disposition, development/construction management, property management, asset management and financial reporting services.

About Goldman Sachs Merchant Banking Division

Founded in 1869, the Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division (MBD) is the primary center for Goldman Sachs’ long-term principal investing activity. With nine offices across seven countries, the Merchant Banking Division of Goldman Sachs is one of the leading private equity investors in the world with equity and credit investments across corporate, real estate, and infrastructure strategies. Established in 1991, the Real Estate Principal Investment Area within MBD has invested in real estate and real estate related assets totaling over $50 billion in equity across more than 800 investments located in 35 countries. Investments include office, retail, industrial, hospitality, residential, acquiring real estate companies, real estate projects, loan portfolios, debt recapitalizations and direct property.