The Acme Markets store on Fifth Street between Spruce and Pine in Society Hill will close when its lease expires in about two years, according to Philadelphia developer Alterra Property Group, which plans a residential building at the supermarket site.

Leo Addimando, Alterra managing partner, said in an email Tuesday that negotiations to extend the grocery store's lease foundered late last year, prompting the developer to move forward with its plan for an apartment or condominium building on the property.

A conditional zoning permit issued last week allows for the market building's demolition and the construction of a 53-foot-high structure with 65 dwelling units on its second through fifth floors, a well as 43 underground parking spaces. Current plans call for "fresh food market retail" on the building's ground floor, Addimando said. Matt McClure and David Gest represent Alterra Property Group.