PHILADELPHIA — Albert M. Greenfield Co. Inc. has sold the Le Crillon, an apartment building just off Rittenhouse Square in Philadelphia, for $14.8 million.
The 41,757-square-foot building at 105 S. 18th St. has 16 apartments and was bought for $925,625 a unit or $355 a square foot. Midwood Management of New York was the buyer. The Beaux-Arts style building also included seven retail spaces of which one store is vacant.
Ken Wellar, Corey Lonberger and Chris Munley, investment brokers with Marcus & Millichap, represented Greenfield. The buyer was also represented by those brokers in addition to Dean Zang, who represented Midwood in the transaction.
The building had been on the market for four months but negotiations with the buyer had been taking place at the same time, Wellar said. The buyer was originally going to purchase just the retail portion of the property but ended up striking a deal for the entire building.
Another aspect of the transaction was it involves a 191-year ground lease, which can sometimes command lower prices, Weller said.
Ground leases can be complicated, said Ken Mallin of Mallin Panchelli Nadel, who wasn’t involved in this transaction but has arranged ground leases between the University of Pennsylvania and Hanover Co. for the development of Domus and also on properties that eventually became 10 Rittenhouse.
“Some investors find ground leases a little difficult to deal with,” Mallin said.
Greenfield initially envisioned converting Le Crillon as two-, three- and four-bedroom condominiums that consisted of 12 flats and four bi-level penthouses, but the market for condos went soft when the units hit the market and plans were switched to make the project rental instead. Greenfield couldn’t be reached for comment.
Midwood Management has a presence in Philadelphia, especially around Rittenhouse Square, and often buys buildings that have a retail component to them. Philadelphia properties in its portfolio include 1719 to 1721 Walnut St. in the heart of Philadelphia’s high-end shopping district as well as 1429 Walnut, 1615 Walnut, 123 S. 16th St. and 1729 Chestnut St.
The structure housing Le Crillon was originally built in 1901 by Addison Hutton, a Philadelphia architect known for the Beaux-Arts style. The building had once been known as the Mitchell, Fletcher & Co. Warehouse Store, which was a local purveyor.
Natalie Kostelni, Reporter
Philadelphia Business Journal