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

[wally]

Just when we thought it might be a done deal...

Thursday, July 31, 2008
Tax breaks help, but BlackRock still in talks: Sweeney

Brandywine Realty Trust CEO Gerard Sweeney in his quarterly investor conference call today:
"BlackRock is looking for a new location to house between 1,000 and 1,500 employees, which would translate to between 500,000 and 600,000 square feet...That prcess is progressing pretty quickly...
"Blackrock, who is a current tenant at Cira One, identified Cira as a short-list location...The recent extension of the (Keystone Opportunity Improvement Zone tax) benefits through 2025 put Philadelphia and Pennsylvania in a very competitive position.
"We are in discussions with BlackRock, but this is clearly a type of climate that both parties are mindful of the need for solid economics in the deal, a clearly-identified financial structure, and flexibility against any future near-term cost fluctuations.
"So all these issues are really front and center in our discussions with BlackRock. In the meantime I think BlackRock continues to fully review their different locational alternatives. And I do think the situation will clarify in the next quarter or two."

Posted by Joseph N. DiStefano @ 3:48 PM

http://www.philly.com/philly/blogs/inq-p...ut_BlackRock_still_in_talks_Sweeney.html

[winxs]

Originally Posted by SEPTATank

...On a somewhat related note, my cousin works for the IRS and is not looking forward to the move. He is contemplating early retirement rather than a much farther commute. I wonder how many people are thinking that way? I suggested the train, as he lives near an R7 station, and pestered him into agreeing to give it a try in the near future. He loves reading too, so this would be a great option. Why do Americans love driving so much?

I work for the IRS too. I used to work up in the Northeast, but moved to 1601 Market in 2004. I love it, but so many of the folks working up at the campus are really against the move. Most say the commute is the problem. I lived 13 miles from the campus and on a Friday afternoon, it could take nearly an hour to get home due to the horrendous traffic on Byberry Rd. Now, I take the train and have my laptop with me so I can be officially "working" while I am commuting. I don't have to stay a full 8.5 hours at my cube. I am also saving hundreds of dollars in gas by not having to drive. I get a transit subsidy which covers my SEPTA fare. Now, many of the employees up in the Northeast won't have the flexibility as I do with work schedules, but if they go into town 20 days a month, they should get 8 to 10 of them for free with the TransitChecks. The biggest problem is going to be with the evening shift employees that get out of work at 12:30 or 2:30 AM. SEPTA Regional Rails are not running then, and they will HAVE to drive. And going into work at 4 or 6PM at the height of the evening rush hour in center city isn't going to be fun either.

But on the positive side, the lunch/dinner choices in town are SO much better than up there, even if it does cost almost twice as much. Plus, they will be moving out of the rat and bug infested buildings off of the Boulevard and into nice clean environs with furniture that isn't 40 years old.

[Jes44]

I thought since Fast Eddie signed the Keystone Opportunity Zone into law, then it was just a mere formality that Black Rock (BR) would annouce their move to Cira South. The gentleman who represented the firm at the City Council meeting said if BR is to move then they would need the tax break for an extended period of time. To me, its a great location, right near 30th Street Train Station.

Also, what is going on with current construction? It seems as if there are a bunch of big vehicles near the tracks but I am not sure whether they are done and will be shortly constructing the garage shortly? Thoughts?

[sciguy0504]

If I can recall, the garage will be constructed first in order to be complete when the IRS move is finished so I'm sure construction will start on that as soon as demo is finished.

[bucks native]

Originally Posted by We Got Five

Bucks Native,

There are 4 regional rail options - you were forgetting the Warminster R2.

Thanks. Overlooked that.

Which of those lines - or is it another line or one that's no longer in service - goes to Bethlehem? I recall a trip to Bethlehem many years ago on the Reading. We needed to get to Allentown but there was no line, so we took the Reading to Bethlehem and were picked up.

If I'm not mistaken, Blackrock's lease in Plainsboro expires in 2011. Cira South should be up by then, no?

[tua21506]

Some pics of the site i took today....

[k2wilde]

bucks_native
That train line I believe was the R5. I grew up in Sellersville and that train used to go up to Allentown, after Sellersville and Perkasie. After my parents divorced, that train was our connection to my father and the city. We would take it through Lansdale, that is why I think it was the R5.

Cheers,
Rob

[theWatusi]

Originally Posted by bucks native

Which of those lines - or is it another line or one that's no longer in service - goes to Bethlehem? I recall a trip to Bethlehem many years ago on the Reading. We needed to get to Allentown but there was no line, so we took the Reading to Bethlehem and were picked up.

That was the R5. Service to Bethlehem ended in the early 80's when SEPTA discontinued the use of it's RDC's

[Don098]

When should we start worrying about the lack of a decision?

One article says this: "...Brandywine Property Trust's Cira South project tells us they're expecting a formal announcement and political brag-fest in early August..."

...while the following article provides a much longer time scale not even in the same ballpark: "...in the next quarter or two."

This latter language makes me believe that BlackRock plans to give NJ time to head to the bench, stitch up the eyebrows and cheekbones, and make their counter-punch. Is there anyone close to the project that could shed an objective light on this?

[Ltrain]

In my humble (and pretty much worthless) opinion, Blackrock has no plans to move to Philly, they just want to use us as a bargaining chip to get more economic benefits out of New Jersey.

[Jes44]

I cant see how BlackRock (BR) can pass up a tax benefit of relocating jobs to Philadelphia as long as they enjoy the KOZ till 2025 I believe was the magical year where the benefit would expire. To me, it would make sense to move this office to Philly because it would be closer to their Delaware operations.

[hammersklavier]

That sounds more like the case to me, too, Ltrain; even with the KOZ Philly and Pennsy would have to pull some real schist out of their collective bags of tricks. BlackRock would, of course, be ingrained out in NJ, so they're probably not in a hurry to actually move per se.

But isn't a major tenant supposed to be Penn's administration? Shouldn't that mean the thing's going to get built anyway? Isn't Penn financing?

[wally]

I don't think that Penn is financing it. I believe that they're leasing the land to Brandywine, and that they're responsible for financing and building it. This is the model that Penn has used with the Domus and Radian projects recently.

[Lincolndrive]

Don, I'm in agreement with you here and have to say that I was really angry the day these 2 very different articles came out. First they make it sound like its a done deal and then a few hours later, everything is different. I have to wonder if someone at Brandywine called the inquirer to make them renounce the statements after they read the first article. WTF?

Originally Posted by Don098

When should we start worrying about the lack of a decision?

One article says this: "...Brandywine Property Trust's Cira South project tells us they're expecting a formal announcement and political brag-fest in early August..."

...while the following article provides a much longer time scale not even in the same ballpark: "...in the next quarter or two."

This latter language makes me believe that BlackRock plans to give NJ time to head to the bench, stitch up the eyebrows and cheekbones, and make their counter-punch. Is there anyone close to the project that could shed an objective light on this?

[Jes44]

To me it makes no sense at all, two different stories, on one hand an announcement is imminent and then the complete opposite, what is going on? Why waste people's time, effort, etc into getting a bill passed only to pull this? NJ was supposedly ranked 4th worst state for economic growth. Penn is supposed to be a big tennant, but not the entire building. I personally would them a drop dead date by the end of September and then look to get some other company to move to Cira South. Are they starting on putting the foundation in for the garage?

[Lincolndrive]

[theWatusi]

I image it would be delicate work dismantling the structure above those two tracks.

[bucks native]

So what's the scoop? Is this hole for Cira South or what? Do we get Cira South only if Blackrock signs on?

[winxs]

Originally Posted by bucks native

So what's the scoop? Is this hole for Cira South or what? Do we get Cira South only if Blackrock signs on?

In that hole will be both of the towers AND the parking garage. The parking garage is part and parcel of the Post Office building renovation for the IRS and needs to be completed before they begin to move in. Last I heard, that would be November 2009. The garage is a DONE DEAL. The construction on that building is not tied to Blackrock or anyone else.

The towers, at least one of them, were scheduled to start after the garage is built (early 2010). They still have a year to secure a major tenant, but even if one isn't found, Penn still wants space, so I wouldn't be surprised if it will get built anyway. If a big league tenant is found earlier than that, they might start building the first tower sooner.

The second tower is the iffy part of the project. But even if it isn't built now, by clearing this whole site and possibly even building a pad for it, they are leaving the window open for something to get build there eventually.

[cubanChris]

Not sure why im bothering posting this... buuuut it is an update... of the same thing we know haha.

Thursday, August 21, 2008
Cira 2 fight: NJ hasn't given up on BlackRock

Despite tax breaks offered by Pennsylvania and Philadelphia, New Jersey still hopes to keep up to 1,500 BlackRock Inc. investment workers from moving to Brandywine Realty Trust's proposed Cira 2 tower. NJ Gov. Corzine is still pitching New Brunwick, and maybe other sites closer to the workers' current, temporary home in Plainsboro, N.J.
Brandywine CEO Gerard Sweeney has warned investors there could still be months of tough negotiations before he could land BlackRock as an anchor tenant. Meanwhile, the Garden State isn't letting up.
"We are making a good-faith effort to convince Black Rock that New Jersey is the best place for its business," Robert Corrales, a spokesman for Corzine, told PhillyDeals today. To help keep BlackRock, the state has, among other things, "lowered the eligibility criteria for grants to companies looking to relocate in the state. We believe, in the end, Black Rock will realize that New Jersey is the best choice to call home."

http://www.philly.com/philly/blogs/inq-phillydeals/NJ_hasnt_given_up_on_BlackRock_.html