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Judge OKs $70M sale of Philadelphia office complex Centre Square
The court approval sets an Oct. 16 deadline and advances a plan for partial mixed-use redevelopment that includes apartments and a hotel.
A U.S. District Court judge has approved the $70M sale of Centre Square, Philadelphia’s largest office complex, moving the redevelopment effort by Adler and affiliates of PMC Property Group closer to completion. The ruling was issued by Judge Nitza Quiñones Alejandro, according to Bisnow, and directed the transaction ahead of an Oct. 16 deadline.
The 2.2M SF property at 1500 Market St, which includes two towers, has been in limbo since foreclosure proceedings began in 2023. Adler and PMC entered into a contract in March with court-appointed receiver CBRE to buy the building with plans for a partial mixed-use redevelopment that includes apartments and a hotel.
The deal faced additional legal uncertainty in March when CSC Coliving and Universal Group Co. challenged the sale, saying they had submitted higher bids. CSC Coliving later withdrew its challenge, and Adler and PMC also sought to exit the transaction despite a $5M nonrefundable deposit.
Judge Alejandro wrote that there was no just reason to delay the order and that it is final immediately for purposes of appeal, the Philadelphia Business Journal reported. Bisnow also noted the $70M agreed price is 21% of the amount Nightingale Properties and InterVest Capital Partners paid in 2017, and that occupancy was 36% when CBRE listed the property for sale last August after the pandemic weakened Center City’s office market.