The asset was built in the 1980s and "stripped to the beams whenGE bought it in 1999," Perl says. GE gut-renovated the buildinginto a corporate headquarters for its insurance subsidiary. Afterdivesting itself of the subsidiary, GE downsized its own space inthe property and, this year, listed it for sale. James Sheehan,senior director of Cushman & Wakefield's financial servicesgroup in Philadelphia, marketed it for GE, and APF submitted thehighest bid and represented itself in the transaction.

At that time, it was 82% occupied. "I think other bidders didn'tfully realize its value," Perl tells GlobeSt.com. "We projectedthat by leasing up the vacancy and eliminating redundancies in thebuilding's operation we could increase NOI by a third, from $2.4million a year to $3.2 million by 2009. Using a 6% cap rate, thatwould equate to an increase in value of more than $13 million,"Perl says.

"We were looking at the Philadelphia area," he continues,"because, relative to the other Atlantic seaboard cities of NewYork, Boston and Washington, DC, Philadelphia has not appreciatedas much, and we think it represents good value. We seerevitalization in this area and a strengthening of Center City. Weare looking in both the city and the near suburbs."