, there was speculation that it could be converted to residential use. But it is about 70% occupied, and the new owner instead intends to keep it as office space.“We’re starting to see the impacts of post-pandemic work patterns and the interest rate environment leading to a reset of valuation in office buildings,” said James L. Paterno, founder of Stockton Real Estate Advisors, which manages 1760 Market St.
at 399 Market St. for a sharply discounted price from its assessed value with the goal of dropping rents and attracting new tenants.“There is going to be an opportunity for the new owners to be aggressive and capitalize on providing a quality location and amenities at a different price point than was being offered a couple months ago,” Paterno said.
Stockton Real Estate Advisors and Alterra Property group previously co-owned the building and invested millions in renovations before selling it to Philadelphia-based attorney and property investor Victor F. Keen in 2018. “It’s an amazing representation of the peaks and valleys of real estate cycles,” Paterno said about the discounted sale price.