Source Article


Space at 801 Market St. housing new Giant Heirloom Market sells for hefty profit

An entity affiliated with Alterra Property Group has sold a commercial condominium
housing a new Giant Heirloom at 801 Market St. in Philadelphia for $21.63 million.
The entity, 801 Market Partners LLC, sold the 32,000-square-foot space to Realty
Income Trust of San Diego (NYSE: O).

Alterra, a developer, bought the commercial condo from PREIT for $5 million in 2020
as the Philadelphia mall owner was going through Chapter 11 bankruptcy reorganization
and prior to the announcement that Heirloom would be the tenant. Alterra “invested
several million dollars to get Giant open,” said Leo Addimando, a managing partner at
Alterra. “It was a turnkey delivery.”

Scott Benson and Steve Niggeman of Metro Commercial arranged the sale.
Separately, the historic 13-story, nearly 700,000-square-foot building at 801 Market St.
that encompasses the condominium and was put up for sale last August has been taken
off the market, according to sources.
In the months since the property hit the market, the Philadelphia Inquirer has decided
to relocate into 37,644 square feet at the former Dow building at 100 Independence Mall
West. The Inquirer leases 89,485 square feet at 801 Market in a deal that runs through
November 2024. Other tenants in the building include the Commonwealth of
Pennsylvania, the Division of Community Behavioral Health and three other U.S.
General Services Administration tenants.
The building sits atop Jefferson Regional Rail Station and is listed on the National
Register of Historic Places. A partnership between Taconic Capital Advisors and Cohen
Equities own the building.

By By Natalie Kostelni  –  Reporter, Philadelphia Business Journal