PHILADELPHIA | EVO @ Cira Centre South | 407 FT | 33 FLRS | U/C

[Don098]

Questioned by analysts, Sweeney said "a couple of larger tenants are looking at a large bloc of space" in the complex, but "in this environment" he's not scheduling work. Brandywine has at least until 2010 to begin hanging iron or face losing the site, he added.

That's key. If nothing starts moving next year, I think it will be safe to say that this project is dead. For now, it looks like it's on pause like I thought. Are all developers in the country holding off on their proposed projects, or could U. Penn hire another nationally-regarded developer that is a little more experienced and stable? I thought U. Penn's staff really needed this space, and that the project was anchored by U. Penn's master plan, and partly some of its financing?

[We Got Five]

Press pause for 12 - 18 months.

[hammersklavier]

I was talking to a guy at the train station a coupla weeks ago who said that Blackrock had, indeed, inked a deal with Brandywine but since their finances are a mess (like everybody else's) nobody was building...or something to that effect. Was he right? Does anybody know?

[McBane]

BlackRock cuts jobs for the "first time"
UPDATE: "Some positions across the firm will be eliminated, resulting in some of our co-workers, colleagues and friends leaving BlackRock... These decisions... will be communicated this week," bond fund and investment manager BlackRock Inc. told its 5,500 employees in a memo yesterday. See the memo at NYTimes' Dealbreaker site here. BlackRock confirmed the memo is accurate.

EARLIER: What it means: "first-ever" job cuts for the giant bond fund and investment manager. The $1.3 trillion (formerly $1.5 trillion) asset manager follows Legg Mason, Fidelity, Putnam and other big mutual fund families in trimming jobs. Bloomberg story here.

We don't know how many BlackRock will cut. We note the announcement takes place soon after BlackRock CEO Lawrence Fink was to meet with executives at his soon-to-be biggest owner, Bank of America Corp. So we're expecting this isn't going to help the proposed relocation of BlackRock workers from Plainsboro, N.J. to Brandywine Realty Trust's proposed Cira 2 complex in West Philadelphia, despite the tax breaks kindly agreed to by Pennsylvania and Philadelphia. Indeed, "no decision has been made" on that possible move, said spokeswoman Bobbie Collins.

But BlackRock's planned expansion in Delaware is on schedule, she added. Earlier PhillyDeals item here.

[Don098]

Today at the ACC meeting, I sat next to this man who explained to me that his job was to basically broker the deal between tenants and landlords to make sure that they're not getting ripped off (commercial and residential) and I asked him if he had heard anything about Cira South II and Blackrock as a possible tenant, and he replied, "The last I heard, it was a no (on Blackrock)," to which I responded, "Wow, well I know their stock tumbled quite a bit," and he nodded his head in affirmation. Now, he's not one on the inside of this project, but he is in the industry. I couldn't ask much more because we were whispering during the presentation, but he definitely seemed like a relatively credible source. He could certainly be wrong, though, and he'd be the first to tell you that. Just thought I'd share.

[Ninjawho]

Was that the guy with the crazy hair? Kinda looked like a toupee?

[Jes44]

I think bottom line it comes down to 2 things: the credit market which is in the tank, not even T Boone Pickens can get money from banks. The same problem applies to the American Commerce Center. Lastly, it comes down to tennants. Penn has alot of bucks and they do need the space, dont see why the construction couldnt begin. Why not use the same tax dollars and allow local schools to have business incubator office space for people who want to start their own businesses from there??? Alot of companies have started in garages, old supermarkets, etc. Thoughts?

[cjPhilly]

I didn't see this posted, but it is good news for a change.

Brandywine Realty in tax-credit deal with U.S. Bancorp

Brandywine Realty Trust has finalized a tax-credit transaction that gives it funding for the rehabilitation of the former U.S. Post Office facility at 30th Street Station in Philadelphia.

Brandywine (NYSE:BDN), which is the developer of the project, will receive $67.9 million from New York-based U.S. Bancorp. (NYSE:USB) The bank has advanced $10.2 million of those funds. The remainder of the money will be funneled to Brandywine next year and 2010, subject to Brandywine's achievement of certain construction milestones and its compliance with the federal rehabilitation regulations, the Radnor, Pa., real estate investment trust said. Once the project is completed in 2010, U.S. Bancorp will receive substantially all of the rehabilitation credits.

The Internal Revenue Service will consolidate several of its regional offices into the old Post Office, which totals 862,692 square feet.

http://philadelphia.bizjournals.com/...d=lfn&brthrs=1

[cubanChris]

^^ that certainly is good news in terms of continued activity at that site, the rehabilitation of the post office as well as the centralization of the IRS to that building is all a good thing for the area... Plus even if the towers arent being built right now, at least the groundwork is laid (and cleared) for that eventuality!

[Jes44]

Anyone have any connections w/ on the inside with respect to Black Rock? I would love to see Cira Center II to be back on track and be built.

[pwp]

Originally Posted by Jes44

Anyone have any connections w/ on the inside with respect to Black Rock? I would love to see Cira Center II to be back on track and be built.

Going about 3-4 months back, and before the economic crisis, a friend who works with the company believed the intended move to Philly was not as popular an option as it was to moving to New Brunswick or the Princeton area.

[winxs]

I received an email today from our facilities folks concerning the 30th Street Post Office Building. Here is a little snippet:

The Philadelphia Campus Consolidation Project ... is now moving into its next phase: Relocation and Move Management. We have completed the space design process and bidding is currently underway on the IRS (interior and parking garage) construction. Demolition of the old Post Office space has been on-going and the project remains on schedule for an August 2010 completion.

It was mentioned that Phase II of the Cira South project (one of the towers) is scheduled to commence upon completion of Phase I.

[cubanChris]

^^ that would roughly bring tower groundbreaking to what some financial experts (is that term elicit sad chuckles from anyone else these days?) predict to be the bottoming out/beginning of the upswing to the economy. So that could potentially be a nice time to start such a project...

Thanks for the update!

[winxs]

I was up at the IRS Campus in NorthEast Philly to get my laptop repaired yesterday...anyway, just inside the lobby of their North Building and outside of the Plant and Facilities offices was an artists rendering sitting on an easel of the whole Cira complex that I had not seen before. It shows 4 towers: the existing Cira I, both of the Cira South towers and parking garage, and the mystery tower behind behind the train station. It looked similar to the one posted here but not quite the same.

I wish I could get a picture of it, but cameras and camera phones are prohibited inside the IRS buildings. I will try to get a closer look to see whose rendering it is when I am there next week and see if I can get a copy of it.

[Eigenwelt]

If you could get a copy of that image Win I would be very appreciative.

[pwp]

Has anyone else seen the huge Cira South advertisement spanning the length of a Septa bus? Saw it downtown over the weekend. It says something to the effect of, "Leasing now".

Is this an old ad?

[Ninjawho]

Originally Posted by pwp

Has anyone else seen the huge Cira South advertisement spanning the length of a Septa bus? Saw it downtown over the weekend. It says something to the effect of, "Leasing now".

Is this an old ad?

Ya, thats been like that for a whiles...

[Pennsgrant]

Originally Posted by pwp

Has anyone else seen the huge Cira South advertisement spanning the length of a Septa bus? Saw it downtown over the weekend. It says something to the effect of, "Leasing now".

Is this an old ad?

So old that Brandywine Realitys stock price was $27.50 compared to its current $2.75

[hammersklavier]

There's also a model of the entire Cira complex (Cira, Cira South, Cira II) in Brandywine's offices in Cira's lobby I saw as I was walking through. I'm pretty sure you could get a picture there.

Also, since the main prospective tenant for this building we know of other than Penn is a financial company, and thus very much tied to Wall Street (Black Rock), it seems over the last few weeks that the market has found a footing of some kind...I'm cautiously optimistic that we've (finally) hit bottom and may be starting to begin to recover, in which case, Black Rock, being a survivor, would be well-placed to be on schedule again.

And of course, the same issues surrounding ACC's possible tenants surround Cira South's possible tenants. If multiple major companies are interested in ACC, which, insofar as we know is certainly indeed the case, then the runner-up company (to the one that actually does sign ACC's lease) may well take Cira South as an excellent consolation prize.

[Don098]

What happened to this?