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

At that time, it was 82% occupied. "I think other bidders didn't fully realize its value," Perl tells GlobeSt.com. "We projected that by leasing up the vacancy and eliminating redundancies in the building's operation we could increase NOI by a third, from $2.4 million a year to $3.2 million by 2009. Using a 6% cap rate, that would 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 New York, Boston and Washington, DC, Philadelphia has not appreciated as much, and we think it represents good value. We see revitalization in this area and a strengthening of Center City. We are looking in both the city and the near suburbs."