Former Gallery mall office space sold to N.Y. buyer for $41.8 million

gallery17-16082017-0003
Artist’s rendering of the section of the former Gallery at Market East shopping mall that houses 907 Market St. offices, after redevelopment into what’s being called Fashion District Philadelphia.

Thor Equities LLC of New York has purchased the 214,000 square feet of office space inside the former Gallery at Market East shopping mall between Ninth and 10th Streets on Market Street from retail landlords Pennsylvania Real Estate Investment Trust and Macerich.

Thor paid $41.8 million for the offices occupied by Health Partners Plans, a nonprofit insurer, spanning the three top stories of the 907 Market St. section of the Center City mall property, it said in a release Tuesday.

The deal completes efforts by PREIT of Philadelphia and Macerich of Santa Monica, Calif., to sell off all the office space at the former Gallery, which they are redeveloping into a new retail project called Fashion District Philadelphia.

The companies previously sold the offices at 801 Market St., built in the 1930s as a Strawbridge & Clothier department store, to Cohen Equities and Taconic Capital of New York.

Thor owns more than 160 commercial properties valued at $10 billion in markets including New York, San Francisco, Los Angeles, Paris and London. The 907 Market St. acquisition is its first Philadelphia asset.

Real Estate Tools
Looking for a new home? Search Philadelphia real estate »
Browse Recent Home Sales »
Compare Philadelphia mortgage rates »