Accesso Wins Loan Extension as Temple Preps Exit

Accesso Partners bought itself breathing room at one of Philadelphia’s most recognizable office towers.

The landlord landed a two-year extension on the loan behind 1515 Market Street, giving it time to refresh the 500,000-square-foot property as it stares down a major vacancy, Bisnow reported. The Florida-based firm announced the workout Monday, saying it renegotiated terms with lender JPMorgan Chase to include a two-year extension and an additional one-year extension option.

The reprieve comes after the tower’s appraised value was slashed nearly 70 percent to $28 million this summer, down from when Accesso acquired it in 2014.

Originated in 2014, the $63.7 million fixed-rate acquisition loan entered special servicing late in 2023 and has been delinquent on payments three times in the last year. The extension gives the landlord more time to stabilize the asset and court tenants.

Plans are underway to reposition the tower with new spec suites, a revamped lobby and an updated conference center, all slated for completion next year. The building last saw a renovation in 2017.

Accesso is betting that the upgrades will help capture tenants chasing higher-quality space in an otherwise battered office market.

The extension comes as Temple University, the property’s largest tenant, has already signaled its exit. The school plans to vacate 130,000 square feet when its lease runs out in 2027, having picked up a former University of the Arts property nearby earlier this year.

Without Temple, occupancy at the building — which was 72 percent full in April — could tumble further. A company spokesperson told Bisnow there is “active interest” in the available space but declined to share details.

At the start of the year, Accesso suffered a blow at 20 North Clark Street in Chicago’s Loop, a 36-story tower it surrendered to New York-based lender One William Street Capital Management through a deed in lieu of foreclosure. The maneuver allows borrowers in default on their debts to turn over the keys to their creditors while avoiding the lengthy court process in a formal foreclosure.

One William loaned the landlord $67 million ($170 per square foot) against the building in 2021.

— Holden Walter-Warner