Another Philadelphia office building has been fingered for conversion to apartments. Philadelphia landlord Ron Caplan's PMC Property Group (Philadelphia Management Corp.) has agreed to pay $8.3 million for the former AAA building, on Market Street in the middle of the city's 20th Century office district.
Caplan says he wants to build apartments and stores there, and hopes to add a tower and parking at the six-story building.
The deal is scheduled to close Friday, Robert Fahey, broker at CBRE, told me. Caplan is buying the building from creditors led by North Star REIT, of New York, which took the building over after a group of Philadelphia and New York investors who raised around $18 million to buy the building in 2006 were unable to make their loan payments. AAA moved to Delaware in 2005; the building's been vacant since then.
Fahey says the property, zoned C-5, could take "five or six times" its current 150,000 square feet of space.