A high-stakes feud between Keystone Development + Investment and developer Dean Adler has brought conversions at the Bourse and neighboring 400 Market Street to a standstill, freezing two headline Old City projects just months after splashy plans were rolled out. The joint venture, formed in June 2024, had proposed turning the Bourse into a roughly 152-room hotel and 400 Market into about 176 apartments. Work stopped last year, mechanic’s liens followed, and a Delaware Court of Chancery order this spring keeps Keystone in charge as managing member while the partners duke it out in court, leaving both sites in limbo as Philadelphia gears up for a tourism bump tied to the nation’s 250th anniversary.
Partners Trade Blame As Work Paused
Keystone filed suit last month accusing Adler and affiliated entities of breaching the joint-venture agreement and failing to properly capitalize the conversions, according to The Real Deal. The complaint says Adler tried to swap in PMC Property Group and shift the Bourse away from a hotel concept. Adler’s response, included in the court filings, says Keystone came back asking for roughly $10 million more and warned of “catastrophic consequences” if new funding did not materialize.
Money Troubles And Legal Moves
Contractors filed liens after work stalled in 2025, and Keystone sought emergency relief from the court while pushing to hang on to control, as reported by Bisnow. Keystone CEO Bill Glazer proposed a roughly $9.4 million buyout that he said reflected invested capital plus a 12 percent return. Adler countered with an offer based on capital costs plus an 8 percent return. Keystone then amended its complaint in April as the fight over financing and control escalated.
What This Means For Old City
The conversions were promoted as key pieces of an Old City comeback and were timed to add hotel rooms and new residents ahead of an expected surge in visitors this summer; instead, the delays have left nearby restaurants and retailers wondering how long they have to wait. The conversion plans, announced when the partners closed on the properties in mid‑2024, included a hotel at the Bourse and 176 apartments at 400 Market, according to reporting by the Philadelphia Business Journal.
Legal Outlook
The Delaware Court of Chancery granted Keystone a temporary restraining order on March 18 that keeps the company as the managing member while the case moves forward, effectively blocking any immediate effort to replace Keystone on the projects, per Bisnow. With both sides staking out sharply different positions on who must fund the work and how, the fight will likely hinge on discovery into financial records, contractor claims and what the operating agreement actually allows.
Next Steps
Both firms say they still want to see the projects completed but argue over the path to get there. Keystone told The Real Deal that the court’s order backs its role as managing member. Adler, meanwhile, has pushed to bring in PMC Property Group and retool parts of the plan. For now, the outcome rests with the Chancery Court’s review of capital contributions and lien claims, while Old City waits to see whether cranes or court filings move first.
