Behringer Harvard Buys First Mortgage for 1650 Arch Street in Philadelphia's Central Business District

DALLAS, Feb. 25 /PRNewswire/ -- Behringer Harvard announced today the successful purchase of the first mortgage secured by 1650 Arch Street, a 553,349-square foot, 27-story office tower in Center City Philadelphia.

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"This investment demonstrates our continued commitment to the Philadelphia market, and to 1650 Arch Street," said Ms. Deidre Hardister, Vice President of Asset Management for Behringer Harvard. "Since the departure of WolfBlock, the debt structure secured by 1650 Arch Street has presented challenges. Now that a Behringer Harvard entity controls the senior debt, we have the flexibility required to upgrade the property and invest capital to lease the vacant space."

"We plan to make significant capital improvements to 1650 Arch Street this year, including lobby and exterior renovations and upgrades to the elevator and mechanical systems," said Ms. Hardister. "The property has available for lease approximately 176,000 contiguous square feet of office space that features efficient floor plates and spectacular views. We expect to aggressively market this space and to invest the capital required to make 1650 Arch Street once again a leading office address in downtown Philadelphia."

With approximately 2.5 million rentable square feet in downtown Philadelphia, Behringer Harvard is one of the largest office owners in Center City. Behringer Harvard's Philadelphia portfolio consists of four high-quality properties in Center City: 1650 Arch Street, The Wanamaker Building, Three Parkway and United Plaza. The Wanamaker Building, located at 1301 Chestnut Street, is a 12-story mixed use property providing 1.39 million square feet of rentable space. Located at 1601-1645 Cherry Street, Three Parkway is a 20-story tower providing 561,351 square feet of office space. United Plaza, a 20-story tower, provides 617,476 square feet of office space. All of these properties are owned by entities affiliated with Behringer Harvard REIT I, Inc., and three have achieved Energy Star ratings as part of Behringer Harvard's sustainability initiatives.

Jones Lang LaSalle (JLL) has leasing responsibilities for 1650 Arch Street and Three Parkway, both of which will continue to be managed by Behringer Harvard. Mr. Drew McGowan, Vice President of JLL's Philadelphia office, will lead leasing efforts for both buildings, with Mr. Tom Weitzel and Mr. Ron Cariola completing the leasing team.

"We are thrilled to represent Behringer Harvard in its market re-introduction of 1650 Arch Street," said Mr. McGowan. "This centrally located, Class A building provides one of the most exciting leasing opportunities available today in Center City Philadelphia. 1650 Arch Street offers the rare combination of large, upper floor, high-quality blocks of contiguous office space and financially stable, well-capitalized ownership. We believe that Behringer Harvard's renewed commitment to 1650 Arch Street sends a strong, positive signal that will reverberate throughout the Philadelphia office market."  

About Behringer Harvard

Behringer Harvard creates and manages global institutional-quality investment programs for individual and institutional investors through its real estate investment trusts, joint ventures and proprietary program structures. The company also offers strategic advisory, asset management and capital market solutions. Behringer Harvard has interests in or manages more than $10 billion in assets. For more information, contact our U.S. headquarters toll-free at 866.655.3600 or our European headquarters at 011 49 40 34 99 99 90, or visit us online at behringerharvard.com.

This release contains forward-looking statements relating to the business and financial outlook of Behringer Harvard REIT I, Inc. that are based on our current expectations, estimates, forecasts and projections and are not guarantees of future performance. Actual results may differ materially from those expressed in these forward-looking statements, and you should not place undue reliance on any such statements. A number of important factors could cause actual results to differ materially from the forward-looking statements contained in this release. Such factors include those described in the Risk Factors sections of the Behringer Harvard REIT I, Inc.'s filings with the Securities and Exchange Commission. Forward-looking statements in this document speak only as of the date on which such statements were made, and we undertake no obligation to update any such statements that may become untrue because of subsequent events. We claim the safe harbor protection for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

SOURCE Behringer Harvard

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