Centre Square is under agreement to be acquired by PMC Property Group and Dean Adler. As a result, a major redevelopment of the Center City office complex is being planned.

The 1.76 million-square-foot property sits at 1500 Market Street near City Hall. According to ownership, the distressed asset will be purchased for less than $100 million. Previously, the complex sold in 2017 for nearly $330 million.

The two-tower property has remained largely vacant in recent years. At the time of listing, the complex was 36 percent occupied. Specifically, the East Tower was 19 percent leased, while the West Tower stood at 48 percent occupancy.

Under the proposed plan, the East Tower will be converted primarily into apartments and a high-end hotel. In addition, a 300-room hotel is planned for the upper floors overlooking City Hall. Therefore, views and location are being leveraged as key selling points.

Meanwhile, portions of the West Tower will remain office space following renovations. However, much of the remaining space will be converted into residential units. Altogether, approximately 500 apartments could be created across both towers.

Wellness-focused retail is also being planned for the ground-floor spaces. Consequently, the property’s street-level activation is expected to improve.

Originally opened in 1973 with First Pennsylvania Bank as anchor tenant, Centre Square has faced financial challenges. The property has been marketed for sale since August as foreclosure proceedings advanced.

Ultimately, the redevelopment is intended to reposition Centre Square as a mixed-use destination in the heart of Center City.