New York-based TF Cornerstone has acquired a majority of the debt on the historic Wanamaker building and is now moving to seize the property from Rubenstein Partners via foreclosure, writes Paul Schwedelson for the Philadelphia Business Journal.

The real estate firm’s acquisition of the loan has shifted the dynamics of the building’s ongoing foreclosure case. The debt was previously held by a commercial mortgage-backed securities trust which aims to a provide return for its investors.

However, the new owner of the building’s debt is a developer who may believe that taking possession of the property presents better opportunities.

TF Cornerstone already paid $40 million five years ago for the Wanamaker’s 435,000-square-foot retail space. The remaining nine floors and the 660-space underground parking garage are owned by Rubenstein. The property backs the firm’s $124 million mortgage on the building.

The Wanamaker in Center City is the perfect example of the challenges facing the city’s office market following the pandemic-related shift to remote and hybrid work policies. The building has seen its occupancy go down from 96 percent in 2020 to 23 percent last year.

Read more about the debt on the Wanamaker building in the Philadelphia Business Journal.

______