Penn has purchased the most expensive per-square-foot office building in Philadelphia for a total of $99.25 million.
Penn Medicine acquired the 12-story, 153,242 square foot Center City tower for over double the development cost, according to a Tuesday press release from Liberty Property Trust, the building's developer. Located at 800 Walnut Street, the building was priced at $648 per square foot, breaking the previous record of $628 per square foot, the Philadelphia Inquirer reported.
Named after the nearby park, Penn Medicine Washington Square will house over 100 health care providers with services ranging from primary care to surgery, according to Penn Med. Penn Med also describes Penn Medicine Washington Square as a green building complete with "energy efficient heating and cooling, optimized day lighting, extensive recycling, and storm water retention through a 'green roof' terrace."
Liberty Property Trust said in the press release that Liberty developed the office for the University in 2013 for $48.5 million. Penn Med is currently the building's only tenant, according to Commercial Property Executive, a website which reports on commercial real estate.
The new medical office is one of several steps Penn Med has taken to expand its operations in recent years. In 2015, Penn Med acquired a system of three hospitals worth $1 billion, and in 2017, the University announced their "largest capital project" ever to build a $1.5 billion Hospital Pavilion by the end of 2021.
Penn Med also merged with the Princeton HealthCare System in 2017 and bought a $16 million property on 4040 Market Street the following year.