New York real estate firm TF Cornerstone bought a majority of the debt on the Wanamaker building and is now taking part in negotiations to acquire the building, writes Paul Schwedelson for the Philadelphia Business Journal.

TF Cornerstone already opens the Macy’s department store space that occupies the first three floors of the nine-floor Center City building.

The Wanamaker building has faced an uncertain future since it was placed in receivership last September as its debtholders pursue foreclosure in order to satisfy a $112 million unpaid mortgage balance.

TF Cornerstone acquired the A note of the building’s current owner’s, Rubenstein Partners, overdue commercial mortgage-backed securities (CMBS) loan, representing the largest tranche of an asset-based security and the most senior of the other notes.

Rubenstein paid an estimated $200 million in 2017 for the 954,363-square-foot office portion of the Wanamaker building. The Philadelphia-based firm owns floors four through 12 and a 660-space underground parking garage.

Meanwhile, TF Cornerstone purchased the 435,000-square-foot Macy’s retail space in the lower floors of the building in 2019 for $40 million.

Acquiring the building’s debt puts TF Cornerstone in position to buy the building outright as foreclosure proceedings play out.

Read more about TF Cornerstone and the rich history of the Wanamaker building in the Philadelphia Business Journal.

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