PSERS ANNOUNCES THE PURCHASE OF FORMER PATRIOT NEWS SITE
812 Market Street Property Acquisition Strengthens Redevelopment of Market/Cameron Street Corridor
HARRISBURG, PA – The Public School Employees’ Retirement System (PSERS) today announced the purchase of the former Patriot News site in Harrisburg. The eight parcels of land, collectively referred to as 812 Market Street, are located at 810, 812 & 900 Market Street, 12, 21, & 23 N. 9th Street, and 24 & 26 N. 10th Street in Harrisburg.
PSERS Board of Trustees authorized the $1.6 million purchase of the property at its recent December Board meeting and the transaction closed on December 19, 2017.
PSERS Executive Director Glen R. Grell commented on the purchase and PSERS’ interest in the continued redevelopment of the city. “PSERS is pleased to play a supporting role in the redevelopment of the Market Street and Cameron Street Corridor. This property has strong investment potential that will benefit PSERS in the years to come. Additionally we believe PSERS’ purchase of this property may serve as a catalyst for other businesses to invest in and support the long-term redevelopment of our Capital city.”
Grell continued, “We are pleased to support the City of Harrisburg, PennDOT and the Harrisburg Redevelopment Authority transit-oriented development plan for this area of the city and look forward to working with these partners and other key stakeholders as we move forward with the redevelopment of this property.”
“The purchase of this property by PSERS is an important step in the redevelopment of the areas around the train station in Harrisburg,” said Governor Tom Wolf. “The state’s planned investments in the Harrisburg Transportation Center and the transformation of the neighboring properties will be a magnet for more redevelopment in the area, benefiting Harrisburg residents and the local economy.”
Harrisburg Mayor Eric Papenfuse also expressed his support for the future site redevelopment. “We welcome PSERS as a partner in the revitalization of our city’s downtown,” said Mayor Papenfuse. “Their commitment to help redevelop the area near the Train Station will provide a vital anchor and help advance our vision for the future.”
Grell stated while definitive plans for the site have not yet been determined; there are many options available for the redevelopment of the property. “PSERS has struggled with space needs at its current headquarters building which is located next to the 812 Market Street property. This property is in a prime location for PSERS and we expect it will help with the System’s short and long-term space needs.”
Additional background on the sale
L & B Realty Advisers LLP, Dallas-based real estate investment advisor, conducted the purchase transaction on behalf of PSERS on December 19, 2017. The seller of the property, Twenty Lake Holdings, purchased the Patriot News property in June 2017 as part of a bundle of 90 distressed former newspaper properties across the country. The $644,000 purchase price allocated by Twenty Lakes as part of the bundled sale bears no direct relationship to the true value of the property. The $1.6 million purchase price paid by PSERS represents the fair value for the eight-parcel property.
About the Pennsylvania Public School Employees’ Retirement System
PSERS, headquartered at 5 North Fifth Street, Harrisburg, PA, is the 16th largest state-sponsored defined benefit public pension fund in the nation. As of September 30, 2017, PSERS had net assets of approximately $54.1 billion and a membership of nearly 256,000 active school employees and over 230,000 retirees.
Public School Employees’ Retirement System