Wilmington-based 9th Street Development is acquiring two office buildings in Kennett Square, plans to convert one into apartments while retaining the other as commercial space for office and medical tenants, writes Paul Schwedelson for the Philadelphia Business Journal.
The 128 E. State Street building, at 100,000 square feet, will become 60 apartments, while the 101 E. State Street property, at 80,000 square feet, will maintain its commercial use.
The seller, Genesis Healthcare, constructed the smaller building in 1998 and followed with the larger one a decade later. The combined 180,000 square feet was fully utilized by the nursing home and assisted-living operator until the company filed for Chapter 11 bankruptcy in mid-2025, at which point it started downsizing.
Once the sale is completed, Genesis will retain just 5,000 square feet at 101 E. State Street.
According to filings in U.S. Bankruptcy Court in Texas, the two buildings sold for $6.6 million. 9th Street Development intends to invest an additional $34 million in redeveloping both structures.
Work on updating the commercial building is expected to be complete within six months, with the apartment conversion projected to take about 14 months.
Read more about 9th Street Development purchasing two Kennett properties in the Philadelphia Business Journal.
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