[Boku]

Rare Rittenhouse portfolio of 6 properties comes under agreement

https://www.bizjournals.com/philadel...agreement.html

Pearl Properties has tied up a rare assemblage of six contiguous parcels in the Rittenhouse Square neighborhood of Philadelphia for an estimated $25 million.

The properties, referred to as the Kean Assemblage, front Sansom Street and Chestnut Street and involve a mix of retail and multifamily uses. The buildings involved in the sale agreement are:

• 1822 Chestnut St., a 2,200-square-foot building constructed in 1920. Its retail space is vacant and it has three of five apartments occupied;
• 1824 Chestnut St., an 1,100-square-foot building built in 1922. Its retail space is occupied by Hats in the Belfry and has six occupied apartments;
• 113-117 S. 19th St., which involves two structures totaling 1,843 square feet and is vacant;
• 119 S. 19th St., a 1,100-square-foot building occupied by Flowers & Co;
• 121 S. 19th St., a 4,000-square-foot vacant building.

The properties provide a prospective buyer with rent-generating real estate or what is a rarity: a development opportunity in the tony Rittenhouse Square neighborhood. The buildings are zoned CMX-5 and provide for dense, high-rise development.

The properties are “surrounded by the most valuable real estate in the city with extreme barriers to entry,” according to CBRE Inc. marketing materials. “With over 200 upscale dining and retail establishments, Rittenhouse Row is one of the most unique and exclusive shopping neighborhoods in the nation. Rittenhouse Square commands the highest residential and retail rents in Philadelphia.”

The last available site on Rittenhouse Square is being developed by Southern Land Co. into the Laurel, a high-end residential tower.

The group of six properties was put up for sale by the Kean family. Leroy Kean bought the buildings as an assemblage in 1994 from Merton Shapiro, who was well-known for owning the Sameric Movie Theaters. Leroy Kean is 90 years old and is retired. The family business is run by his son, Kirby Kean, who declined comment.

Leroy Kean grew up in the Lower Northeast and always believed in the city, according to people familiar with him. He became, they said, an investor who built a successful business by taking lower risks and smaller rewards. Along the way, his business thrived and he had a knack for identifying areas and neighborhoods that were on the verge of turning, buying in them and eventually flipping the properties.

Pearl, based in Philadelphia, is no stranger to owning and developing in and around Rittenhouse Square, where it has amassed a portfolio over the years. It most recently completed the development of the Harper at 112 19th St. The project is a $100 million, 25-story apartment building that has 167 apartments, 25,000 square feet of retail, 10,000 square feet of office space and K’Far Café. A representative from Pearl declined comment.