Bourse, other Old City properties to hit the market

Kaiserman Co. has decided to explore selling a four-building portfolio it owns in Old City, offering a rare opportunity for an investor to quickly establish a footprint in Philadelphia.

The company has retained EastDil Secured to market the properties, according to people familiar with the situation. While the buildings are being sold as a package, it is possible that they could be sold individually depending on the circumstances, sources said.

The buildings include: 400 Market St., a 12-story, 169,000-square-foot office building in which the Philadelphia Business Journal has been a longtime tenant; Constitution Place, a 13-story, 87,760-square-foot office building that houses Buddakan, Cosi, Mrs. K's and other retailers at 325 Chestnut St.; the Bourse, a 10-story, 281,000-square foot building that has both retail and office space at 111 S. Independence Mall East; and a 10-story garage at 401 Ranstead St. that has 453 parking spaces. A Landmark Ritz theater, a deli and dry cleaner are tenants in the parking structure.

The Kaiserman family has long owned the properties and amassed a diverse portfolio throughout the region that includes office, retail and multifamily properties. In August 2012, Ken Kaiserman died. He ran the family business his father started in 1923.

Homer Robinson, a Kaiserman family relative, was named president and CEO in November 2012 and has overseen operations ever since. Robinson joined the company from Jonathan Rose Cos., a New York real estate firm. He couldn’t be reached for comment.

The properties are relatively old. For example, 400 Market was built in 1969 and Constitution Place in 1960. The Bourse was originally constructed in 1895 and was bought by Kaiserman in 1979. The real estate company undertook a $20 million renovation of the building at the time and turned it into a retail and office complex.

The Bourse has struggled to retain its office occupancy. On and off over the years, it has been speculated by those in the real estate community whether the structure might not work better as a hotel or apartment complex. The retail space mainly caters to tourists visiting the historic area.

The properties come up for sale at a time when Philadelphia’s investment market has heated up and interest in the Independence Square submarket has also increased. The Dow building, One Washington Square (formerly Penn Mutual Towers), and the Curtis Center are among buildings that have recently traded. Penn Mutual Towers was put up for sale in December and 401 Market St. is also on the market.

Source: Philadelphia Business Journal