Tuesday, March 18, 2014

Post Brothers sell 260 S. Broad in Philadelphia to Jefferson Apartments at a profit



The Atlantic building at 260 S. Broad St. in Center City is under agreement to be sold.

Jefferson Apartments of McLean, Va., is seeking to buy the 21-story, 330,000-square-foot former office building for more than $50 million, according to people familiar with the situation.

In 2012, Jefferson completed construction of Jefferson Pointe, a 230-unit apartment complex fronting Route 202 in West Chester, Pa. It sold the property last year for $60.9 million.

If it ends up buying 260 S. Broad, the transaction will mark the company’s first dip into the Center City market. The company focus on multifamily development in urban, transit-oriented markets.

Post Brothers bought the property for $27 million in July 2012 with an eye toward redeveloping it into residential use. At the time, the building had struggled when tenants began vacating it. What few, remaining firms were in the building when Post Brothers bought it were subsequently relocated.

Post Brothers debated whether to move forward with converting it into condominiums or apartments and had not made a firm decision in either direction.

Matt Pestronk of Post Brothers said the company doesn’t comment on transactions that have yet to occur but said: “We are an opportunistic buyer and seller.”

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