By Jonathan Lehrfeld CoStar News
A 10-story medical office building in downtown Philadelphia has hit the market as a potential redevelopment opportunity, joining other workplace properties in the city that have been pitched for or undergone a transformation to another commercial use.
The 135,825-square-foot property at 919–921 Walnut St. in Center City is available for $13.5 million, according to a listing on CoStar Group’s LoopNet platform. The property, built in the early 20th century, is known as the Neville Building.
The site “supports a broad range of potential uses, including residential, office, hospitality, retail, or institutional redevelopment,” according to the listing. The building is a "High Vacancy Property," the listing says.
The office property could become the next to transform to another purpose, as CoStar data shows demand contracting in the office market in the final stretch of the year.
“Looking ahead, Philadelphia will find it difficult to sustain the rent growth seen prior to 2020. With tenants continuing to downsize as leases expire, rents are expected to remain soft.”
Owners of other Philly office buildings intend to pursue plans to convert them or have completed projects to transform them.
The four-story office building at 1232 Chancellor St. sold this fall for $1.75 million, CoStar data shows. The new owner plans to convert the upper floors to boutique apartments, Philadelphia Business Journal reported. Alterra Property Group this year turned the 18-story office building at 1701 Market St. into a 299-unit luxury apartment complex.
The Neville Building, three blocks west of the historic Washington Square park, is owned by Thomas Jefferson University and has been used by Jefferson Health. The university bought the building for $13 million in 2013, CoStar data shows. The university did not immediately respond to an email request for comment.
The property’s commercial history includes a stint as the home of Associated Services for the Blind and Visually Impaired, the marketing material notes.
“Its incorporation into Jefferson’s expanding urban campus supported the institution’s broader strategy of integrating nearby properties to support clinical, administrative, and academic functions," according to the marketing materials. "This latest chapter underscores the building’s continued adaptability and enduring relevance within Center City’s evolving institutional corridor."
