Battle being waged for control of Pitcairn real estate empire

Some Pitcairns went back into the real estate business, helping to put up such high-profile buildings as the Bell Atlantic Tower in Center City. Outside investors were brought in, diluting the family stake in Pitcairn Properties.

Among the investors was Mekkawy, who became chairman and chief executive of the company in 1998. He branched out from development into the purchase of existing buildings with institutional partners who provided most of the down payments.

The $50 million preferred-stock sale in 2004 enabled Pitcairn Properties to quickly complete $900 million in deals during the following three years.

Purchases included solid properties, such as 6 Penn Center in Philadelphia for $59 million and the Chesterbrook Corporate Center in Tredyffrin Township for $250 million. But there was plenty of trouble, as well: The $66 million purchase of Northlake Office Park in Atlanta and the $78.5 million deal for an office building in Chantilly, Va.

Pitcairn Properties suffered a setback last year when it lost a court case against a partner, Ronald Parr, who accused the company of cheating him out of his 50 percent interest in a Long Island land deal. Pitcairn had to pay $9.5 million after being blasted by a judge in Suffolk County, N.Y.

It is hard to predict how Pitcairn Properties will fare in Delaware court. Blum is practiced in fights with investment partners.

Thomas Kelly, who formed Marconi Broadcasting L.L.C. in 2006 to buy local radio station WHAT-AM (1340), last year, accused Blum in Delaware court of unfairly squeezing him out of his $1.1 million investment in the station.

A judge said in February that Blum owed fiduciary duty to Kelly, but ruled that a 2008 deal that wiped out Kelly was valid. Mediation on the matter was scheduled, but Blum canceled it, according to a letter filed in court Monday.