PREIT Sells Office Condo Above Fashion District Philadelphia

Courtesy of Thor Equities
A Rendering Of Fashion District Philadelphia, Including The Office Condo On Floors Three Through Five

Ahead of the anticipated opening of Fashion District Philadelphia, its owners have sold the offices above the new shopping center.

PREIT and Macerich have sold the third through fifth floors of 907 Market St., a 214K SF office condo fully occupied long term by Health Partners Plans, a nonprofit health maintenance firm. New York-based Thor Equities bought the property for $41.8M. It is Thor's first acquisition in the Philadelphia market.

In PREIT's fourth-quarter earnings call on Feb. 15, CEO Joe Coradino reiterated the company's desire to focus on modern retail properties like the forthcoming Fashion District, and part of that focus includes selling off other types of assets, such as the office condo above what will likely be PREIT's flagship retail enterprise.

PREIT's old portfolio included nearby 801 Market St., which PREIT sold to a joint venture of Taconic Capital Advisors and Cohen Equities, also Manhattan-based firms, last year.

After the Gallery Mall's slow decline, PREIT and Macerich committed to making the 840K SF Fashion District a shopping center more aligned with modern trends, with an increased focus on food, entertainment (it will have an AMC Theater that will be Center City's only first-run cinema) and activity at street level.

Thor noted Fashion District's upcoming delivery, along with neighboring East Market mixed-use development, as a key factor in its purchase.

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