Lubert-Adler Real Estate Funds and Keystone Development and Investment, two Philadelphia developers, are finalizing a deal to purchase two Old City buildings, writes Paul Schwedelson for the Philadelphia Business Journal.

The two buildings are the 10-story Bourse building and the 12-story 400 Market Street building, respectively.

Once finalized, the developers plan to convert the neighboring properties to new uses.

According to sources, a wedding venue is expected to replace the nearly vacant food hall that currently occupies the first floor of the Bourse. Above the venue, several floors of the building would be converted into a hotel, while office space will take up some of the remaining upper floors.

Meanwhile, sources said 400 Market Street would be converted to either apartments or a hotel.

The two properties are owned by KKR Real Estate Finance Trust, a subsidiary of New York alternative investment giant KKR, which took control of the buildings from MRP Realty in December through a deed in lieu of foreclosure.

MRP had put the Bourse and 400 Market up for sale in January 2023 as part of a portfolio of four Old City buildings, but it was unable to find a buyer.

Read more about the two developers planning to convert two large Old City buildings at the Philadelphia Business Journal.

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