#1 Story for 2016: Massive $6.5B Redevelopment Planned for University City

University City is in for some major changes thanks to a new redevelopment plan from Amtrak and partners SEPTA, Brandywine Realty Trust, and Drexel University. The plan will be the single largest development project in the Commonwealth of Pennsylvania and turn West Philadelphia into a regional economic hub. 

The development is expected to cost $6.5 billion, with $2 billion going to infrastructure investments and the other $4.5 billion coming from developers.

The project is expected to create 22,000 construction jobs and another 10,000 permanent jobs, and add 8,000 to 10,000 residents to the city’s population.

The massive venture will focus on the area around 30th Street Station, the second-busiest station in the Amtrak system, ultimately turning the area into a second downtown for Philadelphia.

Plans for the station and surrounding neighborhood will start with the capping of the existing Amtrak and SEPTA-owned rail yards to accommodate 10 million square feet of development along the Schuylkill River.

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New office, retail and residential buildings containing 18 million square feet of total space and 40 acres of open space would be created, with most of the development privately financed.

The project will include housing for 10,000 residents and create 1.2 million square feet of commercial space.

Three pedestrian bridges across the Schuylkill River, linking University City with Logan Square and Center City, are also planned.

The redevelopment site consists of a total of 175 acres in the University City neighborhood, 88 of which is occupied by the Amtrak rail yard.

This project is the culmination of a two-year study of the site, which extends east of Drexel’s campus between Walnut and Spring Garden Streets and northeast from 30th Street Station.

Among the infrastructure improvements are plans to relocate a ramp for the Schuylkill Expressway in favor of a new bus terminal.

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In addition to the bus facility, Amtrak also plans to expand The Porch at 30th Street Station.

A new gateway park will surround the facility with a tree-lined promenade along the river, a west-side plaza that could be used for large-scale events and a north plaza along Arch Street.

The 30th Street Station itself will also receive a major renovation that will add retail space and a new pedestrian plaza around the train station.

A new underground concourse that will connect the SEPTA subway station at 30th Street to the Amtrak station, is also planned.


   

#2 Story for 2016: $280M W Hotel to Rise on Chestnut Street

Chestlen Development is beginning work for a 52-story tower that will soon begin to rise at 1441 Chestnut Street in Center City. The 780,000 square foot project will construct 755 hotel rooms, of which 295 rooms will be managed under the W Hotel brand and 460 rooms dedicated to the Element by Westin. The development is projected to create 1,800 construction jobs and 450 permanent jobs and is expected be completed by Spring 2018.
 

The W Hotel and Residences will rise 582 feet and have 41,000 square feet of meeting and banquet space, an 8,600-square-foot restaurant, and three levels of  below-grade parking garage for 185 vehicles.

Element Philadelphia will feature 460 rooms and a 6,392 square-foot sky lobby, and W Philadelphia will feature 295 rooms, a 2,900 square-foot spa, a 3,505 square foot outdoor pool and deck, a 1,590 square foot pool bar, and a 2,974 square foot garden area.

The tower will also include more than 1,700 square feet of retail space on the ground floor at the corner of 15th and Chestnut.

Tutor Perini is building the 769,704 square-foot project for Chestlen Development. Cope Linder Architects is the project designer.

The project, which sits across from City Hall and next to the Ritz Carlton, is estimated to cost $280.4 million.

Chestlen Development will put up $205.4 million, and receive $75 million in tax-payer subsidies over 20 years.

It is not unusual for the city to arrange tax incremental financing for construction projects, especially if the work will give an otherwise blighted area an economic boost.

However, tax incremental financing can be controversial when it is put into areas where development would likely have happened without it.

Once the project is completed, it is expected to generate $220.6 million in incremental tax revenues over 20 years and will represent an estimated $25.8 million net gain to the city and $12.3 million to the school district over those two decades.

The W Hotel and Element by Westin is expected to be completed by Spring 2018.
 

#3 Story for 2016: Drexel University Plans $3.5 Billion “Innovation Neighborhood”

Fourteen acres next to Philadelphia’s 30th Street train station will be transformed into a $3.5 billion “innovation neighborhood” designed to mix education, housing and entrepreneurship, under plans unveiled by Drexel University. 

Schuylkill Yards is the name of the mixed-use project, which will add up to eight million square feet of offices, labs, and housing in new and recycled buildings next to the third busiest passenger rail station in the country.

Drexel University, which assembled the land and envisioned the project, announced that it has selected Brandywine Realty Trust of Philadelphia to be the master developer and its joint venture partner in the project.

SHoP Architects and the Dutch firm West8 are working on the master plan. SHoP will handle the district planning and development of the architectural standards, and West 8 will be responsible for creating the public realm and development of the landscape standards.

Project renderings show a combination of high-rise and low-rise buildings on a 10-acre site next to Drexel’s main campus, Amtrak’s 30th Street Station, and Brandywine’s Cira Centre development.

“Schuylkill Yards will undeniably transform Philadelphia’s skyline as new towers rise on the west side of the Schuylkill River,” said Gerard H. Sweeney, president and CEO of Brandywine Realty Trust.

Proposed uses in this “collaborative neighborhood” include entrepreneurial spaces, educational facilities and research laboratories, corporate offices, residential and retail spaces, hospitality and cultural venues, and public open spaces.

While the community is being designed for a wide range of users, from educational and medical institutions to residents and businesses, developers say the common theme will be the pursuit of innovation.
 

“Drexel has always believed there’s a superior use for this unique location — essentially the 50 yard line of the Eastern Seaboard — as a neighborhood built around collaboration and innovation. That’s why the University assembled these parcels, and the time is right to put this vision into action,” said Drexel President John A. Fry.

“Schuylkill Yards is more than a large-scale development; it will be the heart of America’s next great urban innovation district.”

The developers say this is a long-term investment in Philadelphia and its University City neighborhood, and it’s aimed at people who want to live or work in the area and have easy access to the train station.

Besides its proximity to 30th Street Station, Schuylkill Yards will have connections to Philadelphia’s international airport. The master plan calls for a new gateway to Drexel and University City, a real estate submarket with a high concentration of education and medical institutions.

Construction of Schuylkill Yards will take place in multiple phases. As master developer, Brandywine, will oversee a team that includes Gotham Organization leading the residential development, and Longfellow Real Estate Partners leading the life sciences component.

When completed, developers say, the site will contain a mix of repurposed existing buildings and new towers connected by a “diverse network of public spaces.”

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The development will begin with the creation of Drexel Square, a 1.3 acre park at 30th and Market streets, directly across from Amtrak’s 30th Street Station. In addition, they say, the historic former Bulletin Building will be re-imagined by transforming its east facade with “inside/out viewports and a dynamic front screen.”

Philadelphia Mayor Jim Kenney said the project represents “one of the most valuable assemblages of real estate” in the nation.

“Schuylkill Yards is a big step forward in University City’s transition to a next-generation business district,” he said. “It will provide our region’s current and future innovators with a central hub for collaboration and signal to the world that Philadelphia is ready for business in the 21st century’s new economy.”

Schuylkill Yards “will bring new, innovative businesses and residents to Pennsylvania, and the potential economic impact is tremendous,” said Pennsylvania Governor Tom Wolf, “Those who choose to make Schuylkill Yards their home will have access to many of the most innovative companies, organizations and educational institutions in our state.”

#4 Story for 2016: Amtrak's $6.5 Billion 30th Street Station Redevelopment

University City is in for some major changes thanks to a new redevelopment plan from Amtrak and partners SEPTA, Brandywine Realty Trust, and Drexel University. The plan will be the single largest development project in the Commonwealth of Pennsylvania and turn West Philadelphia into a regional economic hub. 

The development is expected to cost $6.5 billion, with $2 billion going to infrastructure investments and the other $4.5 billion coming from developers.

The project is expected to create 22,000 construction jobs and another 10,000 permanent jobs, and add 8,000 to 10,000 residents to the city’s population.

The massive venture will focus on the area around 30th Street Station, the second-busiest station in the Amtrak system, ultimately turning the area into a second downtown for Philadelphia.

Plans for the station and surrounding neighborhood will start with the capping of the existing Amtrak and SEPTA-owned rail yards to accommodate 10 million square feet of development along the Schuylkill River.

Click to enlarge

New office, retail and residential buildings containing 18 million square feet of total space and 40 acres of open space would be created, with most of the development privately financed.

The project will include housing for 10,000 residents and create 1.2 million square feet of commercial space.

Three pedestrian bridges across the Schuylkill River, linking University City with Logan Square and Center City, are also planned.

The redevelopment site consists of a total of 175 acres in the University City neighborhood, 88 of which is occupied by the Amtrak rail yard.

This project is the culmination of a two-year study of the site, which extends east of Drexel’s campus between Walnut and Spring Garden Streets and northeast from 30th Street Station.

Among the infrastructure improvements are plans to relocate a ramp for the Schuylkill Expressway in favor of a new bus terminal.

Click to enlarge

In addition to the bus facility, Amtrak also plans to expand The Porch at 30th Street Station.

A new gateway park will surround the facility with a tree-lined promenade along the river, a west-side plaza that could be used for large-scale events and a north plaza along Arch Street.

The 30th Street Station itself will also receive a major renovation that will add retail space and a new pedestrian plaza around the train station.

A new underground concourse that will connect the SEPTA subway station at 30th Street to the Amtrak station, is also planned.