Thursday, February 4, 2016

Suburban developer seeks to buy Two Liberty Place



Keystone Property Group is making a run at acquiring the office portion of Two Liberty Place.

The Conshohocken, Pa., real estate company has reportedly made an offer on the tower’s 940,000 square feet of office space that could trade for as much as $250 million, according to several sources in the real estate community. There is speculation among these sources that Keystone is teaming up with an off-shore capital source to fund the acquisition.


Keystone, through Rich Gottlieb, a senior vice president at the company, declined to comment.

Up to this point, Keystone’s Center City acquisitions have focused on the historic part of town where it owns the Curtis and the Dow building.

A Two Liberty buy would be a new neighborhood for the real estate company. The property at 50 S. 16th St. is a signature skyscraper in the Central Business District and a prominent tower in the Philadelphia skyline.

The building’s office space is 89 percent leased to multiple tenants on a long-term basis including Cigna Corp., Buchanan Ingersoll, Republic Bank, and Eckert Seamans. Two Liberty’s owner, Parkway Properties Inc. (NYSE:PKY), put it up for sale in November not long after it secured a new lease with Cigna. CBRE Inc. is overseeing the marketing of it.

The office portion of Two Liberty includes the first 36 floors of the building.

The remainder of the building, floors 37 through 57, consists of residential condominiums. The office portion of the property is part of a bigger mixed-use complex that includes the Shops at Liberty Place and a Westin hotel, which have separate ownerships.

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