Two officers of Patriot Equities LP, of Wayne, said yesterday that a deal had been reached, under which both newspapers would remain in the building and share it with other tenants.

But Philadelphia Media Holdings chief executive Brian Tierney cautioned that negotiations were just beginning.

"We're negotiating, but until a deal's a deal, it's not a deal," Tierney said. "We're not negotiating with anyone else, and we're not soliciting any other offers, but there's no definitive agreement."

Patriot Equities, which specializes in underutilized corporate real estate, was among 300 developers nationwide that had expressed interest after the building was put on the market last year, Tierney said.

The property was toured by about three dozen developers, about six of which made bids, Tierney said. Patriot Equities was one of two firms whose bids were attractive, he said. He declined to name the other firm.

Selling the iconic white tower was part of the plan two years ago when PMH purchased the Daily News, the Inquirer, Philly.com and related businesses, Tierney said. The proceeds will be used to pay off part of the more than $300 million that was borrowed when the papers were sold to the new owners for $515 million, he said.

Erik E. Kolar, Patriot Equities president, and Geoffrey Gardner, a partner and chief investment officer, both said yesterday that the deal had been done.

Gardner - and Tierney - declined to comment on a prospective purchasing price or monetary negotiations. Gardner said his company had gone through a "lengthy bidding process" to become the "selected purchaser."

"They [PMH] undertook a very professional approach to the bidding process, one that was not atypical of large transactions such as this," Gardner said.

Tierney said that if PMH sells the building and an adjacent employee parking garage to Patriot Equities, PMH would stay in the building as a tenant, taking up about 40 percent of the space, or about 200,000 square feet.

In previous transactions, Patriot Equities has retained from "zero- to 95-percent occupancy," Gardner said.

Kolar said his firm would turn the remaining space into a multitenant, multipurpose office facility with "select service retail."

"We're looking to keep the building's use as it is now, but add a multitenant dynamic," he said.

While many employees would remain in the building, Tierney said, PMH is considering expanding to other locations.

"We're looking at the possibility of some of our folks being located in other parts of the region, where it makes more sense, given their work," Tierney said. "We're also looking very seriously over in New Jersey. That's an important part of our region . . . and it's important for us to be over there as well."

Tierney said that it would be at least three months before an agreement is finalized, but that Patriot has a lot going for it as a local company that has undertaken similar projects.

"We like their ability to take older properties and renovate them," he said. "We wanted somebody who knew what they were getting into."

Gardner said that his firm regards as significant the acquisition of the newspapers' home, built in 1924 as the Elverson Building and listed on the National Register of Historic Places.

"Our past development history has included undertaking historic rehabs and redevelopments. That will be an element to this redevelopment plan," Gardner said. "Because you can absolutely classify this building as an icon of Philadelphia."