AFC plans to convert the top four stories of the five-story, 20,000-sf building into 16 upscale residential condominiums. The ground floor contains retail space, currently leased to a pharmacy and a restaurant. AFC's price for the building is undisclosed. Through a spokesman, Michael Sonnabend, an AFC principal, tells GlobeSt.com the total project cost, including acquisition and conversion, is estimated at $8 million.

"The original loan went into bankruptcy early last year," says Arthur Fefferman, AFC's president. "The former owner, after failing to refinance the loan, filed an unfounded lis pendens against the property as a last resort. Upon acquiring ownership, we've begun litigation to have this lis pendens removed and obtain a clear title." The spokesman said AFC has no doubt the lis pendens, which is a notice of pending action concerning the title, will be cleared in AFC's favor.

The building, which has a distinctive brick and limestone façade, was built in 1926 and served as headquarters for the Philadelphia Realtors Organization. In 2000, it was completely renovated and converted into an Inn.

AFC plans to add an additional 2,000 sf to the 15,000 sf that will be converted to residential units. According to Sonnabend, prices for the condo units will be between $500 per sf and $600 per sf.

Last June AFC partnered with locally based Altman Group to redevelop Liberty Court at Society Hill, a once-stalled 35-townhouse residential development. It also recently provided $7.9 million in interim financing for the conversion of an historic, seven-story former printing plant at 144 N. 13th St. into the 58-unit Lithograph Lofts. In all, it has arranged financing for or acted as a principal in the development of 13 Philadelphia-area properties at a total of more than $347 million.