In Center City, the building at 1 South Broad Street represents the fruit of investment, and it might be an indication that the Center City market is prime like a rare London broil. Also known as the Lincoln-Liberty or the PNB building, 1 South Broad is now on the market and could sell for between $70M and $75M, the Philadelphia Business Journal (PBJ) reports. Meanwhile, the new AVI tax assessments indicate that the building is worth only $64M.

1 South Broad

A private New York firm led by David Werner, according to the PBJ, purchased the building in April 2003, for $48M. Looks like Mr. Werner will have a handsome profit coming his way. Home to a Borders for about a decade, a Walgreens will soon appear in a large, multi-story retail space here.

The PBJ says that it’s possible that additional Center City buildings will wind up on the market this year, like 2040 Market Street. This year might be the year to sell. This March, 2000 Market St. sold for twice the price for which it had been acquired in 2009, according to the, which reported that CBE Investments purchased the building for $110M. That was during The Great Recession, when mortgage companies were as kind as the Sherriff of Nottingham. If a building that doubles in value in four years is not an indication of a rising Center City market, what is? When PMC bought 2040 Market in 2011 it was acquired for $8.3 M. The PBJ reports the building could fetch up to $140M. While they have been eight new stories constructed and added on to the building between then and now, that’s staggering increase in value.

Massive increase in value

So folks, if you have some spare millions taking up valuable pocket space, now might just be the time to invest in large Center City office buildings. Think about it!

–Lou Mancinelli