Rubenstein and Waterfall announce $127M refi. of Chesterbrook Office Campus in Suburban Phila.

King of Prussia/Wayne PA — Rubenstein Partners, L.P. (including its affiliates, Rubenstein) secured a $127 million refinancing of Chesterbrook, the 1.1 million s/f, 14-building office campus in the King of Prussia/Wayne PA submarket, part of the greater Philadelphia region.

The new loan, provided by funds managed by Waterfall Asset Management’s (Waterfall) commercial real estate lending platform, in conjunction with a significant investment of new equity from Rubenstein along with some third parties, recapitalizes the property to drive the company’s long-term business plans for the class A office campus. The loan is comprised of upfront proceeds as well as funding to support future leasing and capital improvements.

The loan will also support Rubenstein’s continued strategic leasing efforts and allow the company to reinvest in the property in ways that will further boost the asset’s reputation as a leading office campus in suburban Philadelphia.

The CBRE Capital Markets team of Shawn Rosenthal, Jason Gaccione, Jake Salkovitz and Justin Helbling worked in partnership with CBRE’s National Office Partners - Philadelphia team of Doug Rodio, Jerry Kranzel and Bruer Kershner to secure the financing on behalf of Rubenstein.

Since acquiring the office portfolio in 2019, Rubenstein has invested more than $50 million in capital, which included the creation of “The Circuit,” a centrally located, best-in-class amenity center that serves as a vibrant connector to the Chesterbrook campus community and promotes productivity and collaboration. The amenity center features a food hall, outdoor gathering spaces with fire pits, high-tech meeting rooms, and a state-of-the-art fitness center along with a 20,000 s/f full service co-working suite. They have also upgraded the lobbies, façades, and landscaping across most of the portfolio to create a modern and inviting tenant experience.

Waterfall worked with Rubenstein Partners to provide a flexible financing structure tailored to Rubenstein’s creative business plan. “We are excited to support a first-class operator in their core competency and market,” said Ezra Zucker, associate on Waterfall’s CRE lending team.