PHILADELPHIA — Keystone Property Group and Mack-Cali Realty Corp. (NYSE: CLI) have jointly purchased Curtis Center, a Class A office and retail building overlooking Independence Hall and Washington Square Park in Philadelphia’s Center City, for $125 million. The companies acquired the building in an all-cash transaction, and plan to redevelop the property into a mixed-use development consisting of luxury rental apartments, office space and an outdoor pedestrian experience.
Curtis Center totals approximately 885,000 square feet and comprises a city block. Current tenants include the General Services Administration and several ground-floor retailers. Keystone and Mack-Cali plan to convert approximately 90,000 square feet of office space in the building into 90 luxury rental apartments.
“Not only is Curtis Center rich with cultural importance, but it's also perfectly aligned with our company's overarching goal to expand our regional footprint by creating exciting live-work-play spaces in dynamic markets,” says Bill Glazer, president of Keystone Property Group. “We're thrilled to have the chance to transform this icon into a vibrant mixed-use environment, while maintaining the historical significance of one of Philadelphia's most recognizable buildings.”
A redeveloped Curtis Center will also feature new corner restaurant spaces with frontage on Walnut and Sixth streets, as well as outdoor seating and views of both Washington Square Park and Independence National Historical Park.
Keystone and Mack-Cali plan to complete capital improvements to the property, including upgrades to the elevators and renovation of the building's HVAC system, roof, facade and parking garage.
An affiliate of Keystone will manage the office and retail portions of the building, while Roseland, a subsidiary of Mack-Cali, will be responsible for the design, construction, leasing and management of the luxury apartments.
Curtis Center originally housed Curtis Publishing, owner of publications such as Ladies' Home Journal, The Saturday Evening Post, Jack & Jill and Country Gentleman.
Keystone Property Group is a real estate investor and developer founded in 1991 with offices located in Bala Cynwyd, Pa.; Miami, Fla.; and New York.
Mack-Cali is a self-administered, self-managed real estate investment trust. Mack-Cali owns or has interests in 280 properties, including 267 office properties totaling approximately 31.6 million square feet, and 13 multifamily rental properties containing approximately 3,900 residential units, all located in the Northeast.
The stock price of Mack-Cali closed at $21.99 per share on Monday, June 9, down from $25.85 per share on June 7, 2013.
— Scott Reid