Higher Bidders For Centre Square Threaten Adler And PMC's Deal
The future of the largest office building in Philadelphia is back up in the air.
PMC Property Group and Dean Adler had reached an agreement in February to buy the 2.2M SF Centre Square building for $70M, but two other bidders have made higher offers, and one is arguing the sale process was unfair, the Philadelphia Business Journal reported.
CSC Coliving on Thursday submitted an $80M proposed purchase and sale agreement in the foreclosure case for the tower at 1500 Market St., PBJ reported, citing documents filed with the U.S. District Court for the Eastern District of Pennsylvania. It reportedly sent a nonrefundable $2.5M deposit.
If the company were to acquire the property, its plans include converting vacant office space into apartments or a hotel, a CSC spokesperson told PBJ. Parts of the building that are occupied would remain office space so tenants aren’t displaced.
CSC didn't return Bisnow’s request for comment. PMC declined to comment, and Adler said he had no new information to provide.
Another bidder, Universal Group Co., reportedly offered $75M for Centre Square in February. And it filed a motion in the foreclosure case arguing that the property's receiver, CBRE, didn't properly disclose all offers.
An agent at the brokerage reportedly responded that they couldn’t field any more offers since Adler and PMC were already under contract to buy the property.
Universal argued that the rejection was misleading because the sale hadn't been approved by the court and the lender.
Centre Square was previously owned by Nightingale Properties and Wafra Capital, which bought the complex for $328M in 2017.
They refinanced it for $390M in 2019, shortly before the pandemic cratered the building’s occupancy. It was foreclosed in 2023, and CBRE was tapped as the court-appointed receiver.
Centre Square is located across from City Hall from the Wanamaker Building, where TF Cornerstone and Alterra Property Group are carrying out a partial residential conversion.
