Jefferson Centralizing Corporate Services at 1101 Market as Expansion Continues
Jefferson announced today that it will be centralizing and relocating corporate services to a new Jefferson center at 1101 Market Street, the former Aramark Headquarters.
The building is one of the tallest in Center City with visibility extending to New Jersey, which is home to a Jefferson Health enterprise hub in Cherry Hill and Washington Township in Camden County.
“This is an important operational move in terms of reducing costs and integrating critical support functions. It will enable Jefferson to support our expanding network, and ultimately best serve our patients and students,” said Peter DeAngelis, Executive Vice President, Chief Financial and Administrative Officer of Thomas Jefferson University and Jefferson Health. “By occupying one of the more iconic buildings in Center City, we will be even better positioned to demonstrate our region-wide commitment to patients and students. As such, this building will represent so much more than realizing operational efficiencies.”
Thomas Jefferson University and Jefferson Health have been on a transformational journey of growth, change and innovation since 2013, expanding from a three- to a 13-hospital system with a two-campus university focused on training tomorrow’s professional leaders. Jefferson’s growth has been driven by one mission – improving lives.
“Our expansion has caused us to look closely at lease agreements and costs associated with a corporate workforce of skilled professionals in office space throughout the various communities in the region” DeAngelis added. “We concluded 1101 Market affords us a once-in-a-lifetime opportunity to provide the right space for those who serve daily as enablers of a reimagined, forward-thinking health and academic enterprise.”
Jefferson will lease the soon-to-be renamed Jefferson Tower from the Estate of Stephen Girard, which owns the landmark 32-story structure in the heart of the newly-revitalized East Market Corridor. Rental income generated from the lease will flow to the Estate’s real estate investment portfolio, the income from which helps to operate Girard College, the historic North Philadelphia boarding school that provides free education and boarding to students from one-parent families throughout the city and region.
“This transaction means that the Tower potentially will remain fully occupied, with little or no vacancies, for the next 16 years,” said Joseph P. Bilson, Executive Director of the Girard Estate, who led the Estate’s negotiations with Jefferson. “From Girard’s perspective, it will have a tremendously positive impact on our ability to help fund the operations of Girard College.”
“This is a deal that will benefit children in need for years to come,” said Ron Donatucci, President of the Board of Directors of City Trusts, which administers the Girard Estate and 117 other public charitable trusts on behalf of the City of Philadelphia. “It’s great for Girard, great for Jefferson, and great for Philadelphia.”
Under the terms of the 16-year lease, Jefferson will occupy 14 floors as of January 1, 2019, with an option to expand to another six floors. Over time, the corporate services expected to be relocated include Facilities, Finance and associated services, Human Resources, Information Services & Technology, Jefferson University Physicians Administration, Legal and associated services, Marketing and Communications the Office of Institutional Advancement, and Supply Chain Management. Currently, these functions are housed at various locations across the city.
The consolidation of these services will occur over several years and in multiple phases beginning in late 2019.
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