Jefferson Acquires MilkBoy Building

Image | U3 Ventures

The area around Thomas Jefferson University Hospital in Washington Square West/Midtown Village has seen a surge of redevelopment of late, and the hospital has now acquired a piece of it.

Thomas Jefferson University Hospitals has paid $2.1 million for the building at 1100 Chestnut St., across 11th street from the hospital’s Gibbon Building. The building houses the Center City location of MilkBoy, a popular bar and live music venue.

Jefferson bought the building from U3 Ventures, a firm founded by former real estate managers at the University of Pennsylvania, which acquired it for $2 million in 2007.

“We have long worked to be good neighbors for our community in Center City,” said Kathy Gallagher, Jefferson’s chief operating officer, in a statement. “This building is in the heart of Jefferson’s campus in Center City, and when it became available, we elected to bring it into the Jefferson fold.”

MilkBoy owner Jamie Lokoff explained that his business’ survival was an integral part of the sale. “We’ve been in concert with U3 through the whole process,” he said. “We renegotiated the lease before the building was put on the market. We secured ourselves for the next 15 years. At the time we didn’t know who was going to buy the building, so it was important that we were protected. We were thrilled to hear that Jefferson bought the property. We’ve always felt aligned with them by just being a welcome destination for their staff, patients and families of patients.  This move just makes it official to us. We look forward to be connected to Jefferson for many years to come.”

The Brickstone Companies owns most of the properties surrounding this one and is engaged in several new construction and rehabilitation projects. The largest of these, The Collins, is set to open this spring with a Target department store, several other retail tenants, and upscale apartments.

“This is a real estate strategy to ensure we can support our neighbors and help the vitality of Center City over the long term,” said Gallagher. “As a major employer in the city, we understand the importance of economic development in Philadelphia and we are proud to be part of the exciting revitalization on Chestnut Street.”