$500M East Market Redevelopment Ready to Rise

A four-acre block, bound by Market, Chestnut, 11th and 12th streets will soon be transformed into a retail-residential development. The project, called East Market, will encompass 4.3-acres and cost approximately $500 million to build. The $230 million first phase of East Market includes demolition of the existing building at 11th and Market Street, which began in October, followed by construction of a 17-story mixed-use tower totaling 650,000 square feet. 
  

East Market's master plan calls for no fewer than six buildings, and will incorporate high-rise apartments, boutique offices, and a hotel.

The initial structure will include 160,000 square feet of retail space on two levels, topped by a 325-unit apartment building.

Phase I will also renovate the 200,000-square-foot family court building into retail and office space and slice the block bound by Market and Ludlow streets in half for a pedestrian promenade.

"We're going to have grocers, we're going to have restaurants, entertainment, fashion," said Jeff Kanne, CEO of National Real Estate Advisors, the $2.2 billion-asset, Washington-based firm backing the project.

The project will be built with 100% union labor, including IBEW electricians. The development team was glad to note that union crews delivered the NREA-backed tower at 2116 Chestnut Street ahead of schedule.
 

The $500 million-plus project is aimed at upgrading Philadelphia's worn downtown retail district and spreading Center City's apartment revival east of Broad Street.

NREA counts the International Brotherhood of Electrical Workers and other labor unions among its investors.

The partnership redeveloping Girard Square in Center City into East Market will soon begin a $20 million redevelopment of the former Family Court building at 34 S.11th Street into new Class A office space, with the organic grocer, Mom's Organic Market, leasing 16,000 square-feet of space on the ground floor.

National Real Estate Advisors, SSH Real Estate, Young Capital and Joss Realty Partners plan to totally gut the now vacant 160,000-square-foot building and install new mechanical equipment, including elevators, as well as totally redo its interior and put a new facade on the structure.

The builders will strip and replace the outside walls of the eight-story former Snellenburg department store warehouse facing 11th Street, now used by the city's Family Court.

Planned are new stores facing Market Street, lit by Times Square-style signs, that will be topped by 325 apartments - at $2,300 a month for a one-bedroom unit - with underground parking.

Retail stores are also planned for the first floor of the nearby 12-story Girard office building, with the upper floors upgraded for office, hotel, or apartments, depending on market demand.

"We're going to make Market Street cool again," said Daniel Killinger, director at NREA Development Services.

If the initial space sells well, the group plans to replace buildings in the 1100 block of Chestnut Street with new stores and apartments - bringing the residential count for the entire project to as many as 1,000 units.

Demolition to Begin for $1.2B Drexel University City Development

Drexel University plans to build housing, stores, labs, offices, parking and a public school on 2.7 million square feet on the north side of Filbert Street just west of the university, at a cost of around $1.2 billion. The 14-acre property was the former home of University City High School and Charles Drew Elementary. The development plan also includes laboratory and research space, as well as recreational space. Some 3,700 people will work on the site once it's all built out, and 4,300 workers will be hired at various stages in project construction, “producing substantial economic and fiscal benefits,” according to the university.

This week, demolition work is slated begin on buildings at the former University City High School site.

Drexel University City Development, a joint venture between Drexel and Baltimore developer Wexford Science & Technology, acquired the 14-acre site from the School District of Philadelphia in June 2014 for $25.15 million.

Wexford is also the developer of the nearby University City Science Center tower at 3737 Market Street.

The development plan totals more than 2.7 million square feet and includes a K-8 public school surrounded by residential, retail and public open space, as well as laboratory and research office space and parking. The residential housing component “will not be dormitories,” said Bob Francis, Drexel’s vice president of University Facilities.

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The project will create more than double the square footage of Philadelphia's tallest building, the Comcast tower.

President John Fry called it "an exciting and rare opportunity to convert an underutilized and vacant property into a vibrant center" for Drexel and its community.

Upon full completion, the project will cost around $1.2 billion, will have created 4,300 construction jobs, will house 3,700 employees and will produce substantial economic and fiscal benefits to both the City and the Commonwealth.

During construction, the university estimates the Philadelphia economic impact to include $1.2 billion in total expenditures; 4,300 jobs; and $11.2 million in tax revenues.

After completion, Drexel projects an annual Philadelphia impact of $711 million in total expenditures; 5,600 in total jobs; $20 million in tax revenue to the city and an additional $7 million of tax revenue to the School District of Philadelphia.

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Drexel, once a small school with a large commuter population, has rapidly expanded in the last decade and has about $2 billion worth of construction planned.

In addition to the University City High School redevelopment project, the Drexel has a large, mixed-use residential and retail complex under construction at 34th Street and Lancaster Avenue.

Lancaster Square will increase dining options and supply the beds necessary to meet the school’s housing requirement, along with retail in the northwest area of the campus.

The university also has plans to develop a 12-acre site near the 30th Street Station that would include a 6.4 million-square-foot hub of sleek new buildings for technology incubators, academic offices and retail space.

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The project might eventually include building over the 75-acre Amtrak rail yard, a bold idea that would represent a huge addition to the rapidly developing area.

When finished, these developments would combine academic research into fast-growing areas like information technology, energy and bio-sciences with the business interests that could commercialize them, while providing residential and retail space for an anticipated influx of young workers, all within walking distance of rail service to New York and Washington.
 

Construction on Mural Arts Lofts Project to Begin in February

The North Broad Street makeover is about to add yet another residential project to the North Philadelphia neighborhood. Developer Eric Blumenfeld plans to transform the former Thaddeus Stevens School at Broad and Spring Garden Street into 56 loft apartments called Mural Arts Lofts.

The $16.2 million project will convert the historic building at N. 13th Street into 56 loft-style apartments and reuse the existing elements found in the school.

Each unit will have the original chalkboards and built-in cabinets and the hardwood floors will also be restored in the process.

The massive building at 1301 Spring Garden Street will be restored and feature in a number of residences, the original transoms above the classroom doors.

The original gothic arch of the main entryway, along with most of the exterior's vibrant tile work will be restored, and the gymnasium will be converted into six two-story apartments.

Construction is slated to begin in mid-February.

The building is instantly recognizable due to the "Common Threads" mural on its west-facing facade. "That's not going anywhere," said the developer.

There are plans in place for a rooftop deck, with a lounge and pool area, and construction of up to three units, including a penthouse with its own roof deck, which will be built in another phase of the project.

In the meantime, residents will have access to the rooftop amenities at the Lofts at 640–which include a pool with amazing views of the city.

As for a timeline, the developer anticipates that approximately 30 units will be completed and ready for occupancy by late summer, with all units expected to be complete by the end of the year.

Architect Richard Sauder is in charge of the design, David Chou & Associates is the Engineer and Domus, Inc. will be heading up the construction efforts.

Thaddeus Stevens School of Observation is a historic Gothic Revival building located in the Poplar neighborhood of Philadelphia. The five-story, brick building was built in 1927 as an "observation school" for teacher education and training. 

 

$100M 'Fergie Tower' Will Soon Rise on Walnut Street

A new high-rise apartment tower is about to be built in Center City, east of Broad Street, on Walnut Street in the busy Washington Square West neighborhood. The 26-story mixed-use new tower proposed by the Goldenberg Group is moving forward and will have 300 apartments with retail space at the ground level.  $100 million-plus project will be built on a huge parking lot at 1213-19 Walnut Street, adjacent to historic Fergie’s Pub.

Previous owner U3 Ventures sold 1213-1219 Walnut Street to Goldenberg Group for $8.2 million after a lengthy process that was initially met with resistance by bar owner Fergie himself.

When U3 Ventures first proposed constructing a project on the site, it wanted to build a 30-story building that had 152 hotel rooms, 299 apartments as well as restaurant and retail space that would front Walnut Street and wrap around to Sansom Street.

A throughway was designed so that pedestrians and vehicles could pass through from Walnut to Sansom. The proposal was met with resistance from the owner of Fergie's Pub and a lawsuit ensued.

Eventually, a settlement was made, a zoning overlay was placed upon that block and the project was scaled down to have just apartments and retail.

The 150+ year old building housing Fergie's Pub would endure.

The new tower at 1213 Walnut Street is being designed by TEN Arquitectos and will rise 26 stories and 294 feet tall.

Goldenberg is constructing the high-rise apartment tower in partnership with Hines, a Houston-based development company.

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The property has been dubbed the "Fergie Tower" because of its proximity to Fergus Carey's pub, a popular bar located in the immediate area at 1214 Sansom Street.
 

THE YEAR IN REVIEW: # 1 STORY FROM 2014

PA’s Highest Residential Tower to Rise on South Broad St
A sleek 47-story hotel/condo tower planned for the corner of South Broad & Spruce streets has been approved by the Civic Design Review Committee. The SLS International Hotel and Residences will soar 590 feet and will house 125 luxury condo units, 150 hotel rooms, an Olympic sized swimming pool, a restaurant and retail space. The $200 million building will be Pennsylvania’s tallest residential structure, and its units will be among its most expensive. Construction is expected to take about two years to complete.

Dranoff Properties is clear to begin construction of SLS International Hotel and Residences - a 47-story, 590-foot tower with 125 condos and 150 hotel rooms at Broad and Spruce streets, across the street from the Kimmel Center.

There are currently two buildings on the site. These will be torn down, but first asbestos must be removed.

Remediation will begin in late fall or early winter, with demolition to follow and construction to begin as soon as the site is clear.

The new building will be designed by Kohn Pederson Fox, architects of the world's highest hotel, the Ritz-Carlton Hong Kong.

Project details:

• 47 stories and 590 feet tall
• Approximately 423,000 square feet
• 162 five-star hotel rooms
• 125 luxury condos, ranging from one-bedroom units to penthouses
• The hotel and condos units will have separate lobbies

• Ground-floor retail stores
• 6,000-square-foot, double-height glass ballroom on the fifth-floor
• Olympic sized swimming pool, fitness center and spa
• A ground-floor corner bar and restaurant

• Target groundbreaking: next fall
• Construction time: two years
• Cost: more than $200 million

• Total parking spots: 233
• One level of underground parking; three levels above-grade
• The garage will be limited to residents and hotel-uses, and all parking will be by valet.

The compelling 47-story tower is intended to act as a catalyst for the future of development to the south of Center City, said architect Gene Kohn.

Developer, Carl Dranoff, says the building will be the Pennsylvania’s “tallest structure built for residential use.“

The 590-foot tower will be taller than the William Penn statue on top of City Hall, and its units will be among the City’s most expensive.

Construction will require the demolition 301-309 South Broad Street, the longtime home of Philadelphia International Records. The building suffered significant fire damage in 2010.

The name, SLS International, is a nod to Philadelphia International – which was famous for the “Philadelphia Sound,” showcased in the recordings of artists such as The Three Degrees, Teddy Pendergass, and The O’Jays.

311 South Broad will also be demolished, and the University of the Arts lot at 313 South Broad Street will be taken and used as a loading dock.

The SLS International Hotel and Residences will be one of Philly's most upscale properties once complete. Not only will it be the tallest building on Broad Street, it will also house an Olympic sized swimming pool, a spa and boast the highest penthouses in the city.

The project calls for condos from floors 20 to 47, hotel rooms on lower floors, and amenities including restaurants, a gym, swimming pool and a spa near street level.

The new building will feature stone at the base, but will be primarily made of metal and glass. The glass will have a high-performance coating, and the metal will be covered with a bright metallic paint.
  

THE YEAR IN REVIEW: # 2 STORY FROM 2014

Massive $660M Delaware Riverfront Apartment Complex
A massive 2.5 million square foot development project will be built on a vacant, 5.3-acre site along the Delaware River waterfront. The Philadelphia City Planning Commission approved Waterfront Renaissance Associates’ $660 million plan to build Renaissance Plaza at the corner of Callowhill Street and Columbus Boulevard. Construction of four mixed-use towers will kick off by the summer of 2015 and will be divided into four phases, with one tower completed in each development stage.  

Combined, the four glass and metal high-rises will comprise 1,411 market-rate apartments and 70,000 square feet of ground-floor retail space.

The complex will also include two sport centers, several bars and restaurants and an enclosed parking garage with 500 spaces.

Renaissance Plaza is being developed by Waterfront Renaissance Associates, along with its affiliate Carl Marks & Co., the New York investment firm that pieced together four tracts that make up the plot about three decades ago.

The $660 million development will consist of four buildings that range in height from 21 to 31 stories. The tallest tower will reach 240 feet into the sky, a significant change from the original proposed height of 480 feet. The project will also include a green roof, and will seek LEED Gold Status

Building the first phase would take about 16 months, with each phase of development comprising about 360 apartments. Plans also include 16 townhouses, nearly 70,000 square feet of retail space, and 653 parking spaces along with more than an acre of landscaped public plazas.

A swath of landscaped public space would run through the property, which the developer believes will draw people from the neighborhoods through the property, and down to the river.  Some roofs would offer additional green space.

Since the complex will be built on the west side of Delaware Avenue, not the river side, the developer will pay for a crossing signal to get people to the river itself, and will make improvements between the project and the Spring Garden transit stop.

Soil conditions at the site require piles to support the buildings - 700 are required. They will be drilled, not driven, because of sewer infrastructure.

The project is within the area covered by the newly adopted Central Delaware Overlay, which sets a height limit of 100 feet, but allows developers to earn height bonuses up by providing public amenities.

A developer who maxed out the public amenities – which include building a section of waterfront trail, building to LEED environmental standards, making transit improvement and providing public green space – can build up to 244 feet.

The site along the Delaware River waterfront had many bold ambitions that never came to fruition.

The site had been known for the last 15 years as the future address of the Greater Philadelphia World Trade Center.

That development would have entailed more than 3 million square feet of space consisting of a residential tower and three office buildings, parking for more than 2,000 vehicles and 118,000 square feet of retail space. That never happened.

Last fall, Waterfront Renaissance Associates, made a leap across the river and decided it would move the Greater Philadelphia World Trade Center project to Camden, New Jersey, where the developer has proposed building a 2.3-million-square-foot campus on 16 acres at the former Riverfront State Prison.
  

THE YEAR IN REVIEW: # 3 STORY FROM 2014

401 N. Broad Moving Forward with $70 Million Renovation   
The new owner of 401 North Broad Street in Center City is moving forward with a $70 million renovation to the telecom building. Amerimar Enterprises and its partners bought the property in March and are hopeful the multi-phased, multifaceted improvements planned for the building will help entice new tenants to fill up its empty space. 

The building is considered one of the most important mission critical data centers along the East Coast. The renovations aim to position the building to truly realize its full potential.

The first phase of work will entail overhauling many of the building’s mechanical systems and its security and creating new shaftways from decommissioned elevators.

The shaftways will be used to house cabling. Work will also be done to the facade.

In addition, a 20,000-square-foot “meet-me” room will be constructed. This is space within a telecom hotel where different networks can connect with each other. It will be carrier neutral and owned by partners.

Work will also entail preparing the vacant space with the necessary equipment and other gear that telecom tenants need. The types of tenants that might be interested this data center space is vast.

About 300,000 square feet of the 11-story, 1.3-million-square-foot building is empty. The vacancy came about when some of its non-data related tenants vacated.

Tenants can come from a range of industries including financial, cloud and information technology services, manufacturing, health care, universities and other institutions.

Aside from housing Internet data and data communications, data centers are used for disaster recovery purposes, processing transactions and even housing corporate IT operations.