Developer Art Falcone is banking on the value of a killer view.
The luxury condos he is building on the top 20 floors of the 57-story Two Liberty Place in Center City provide that - along with a concierge service to walk your dog or deliver your groceries.
But it's the view that's priceless. Well, almost priceless. The asking price for a two-bedroom, two-bath unit is $2 million to $4 million, depending on the extras. A penthouse is just $15 million.
Real estate developers and investors around the country are watching the project, called the Residences at Two Liberty Place, to see if the concept of converting an office tower into high-end condos will take off.
Falcone Group of Boca Raton, Fla., is not the first development company to convert office space to condos. But it is the first to do so in a premiere downtown office tower.
"This is an anamoly," said Bob Clements, executive vice president and managing director of Grubb & Ellis Co., a commercial real estate firm. "At the time they purchased the space, it was a good thing to do because there was a glut of office space in the market, and probably that is what led them to consider that."
Two Liberty - classified as a trophy building because of its location, quality of space, amenities, security system, and image - had lots of vacant space to lease after it lost Ace American Insurance Co. in February 2005. Around the same time, Two Liberty's main tenant, Cigna Corp., reduced its space in the building by half, to 400,000 square feet, when it reorganized its business.
About a year and a half ago, Two Liberty was offered for sale by its co-owners, the Pennsylvania Teachers' Pension Fund and the Shorenstein Group. The Falcone Group's partner at the time - America's Capital Partners, which specializes in office buildings - took Falcone executives for a meal on the top floor of Two Liberty, where Cigna executives dine.
"When we were looking at it, we said: 'Office? No office here.' Not with this view," said Albo Antenucci Jr., Falcone's executive vice president and project manager, as he peered out from one of the model units on the 52d floor recently.
Antenucci said converting the space into 122 condos would begin this month (though four sample units have been completed), and buyers could begin moving in by fall.
Antenucci had local brokers peruse the model units last week and again this week, and gave them informational packets to take back to their clients.
