PHILADELPHIA | EVO @ Cira Centre South | 407 FT | 33 FLRS | U/C

[Lincolndrive]

They've installed what looks like dozens of steel pilings (you can see them below). Not sure what these are going to be used for but perhaps someone out in skyscraper land does?

[theWatusi]

The remaining structure to the right -- is that above some of the rail lines?

[GarCastle]

I believe so. I think the whole area is above tracks or roads. I almost walked under part of that until way too many hairs stood up on the back of my neck. It's utterly dark and trash-strewn in parts, certainly the part that I almost walked through. When you see sleeping bags, sheets, clothing, and trash scattered all about in a pitch black area, going another way is a good option hehe. I use to squeeze into dank wet fenced off caves and I don't think I'd want to even drive my lifted pickup through those under access roads or whatever they are. Maybe I'm just turning into a pussy with age.

[Wayne Junction]

Originally Posted by GarCastle

I believe so. I think the whole area is above tracks or roads. I almost walked under part of that until way too many hairs stood up on the back of my neck. It's utterly dark and trash-strewn in parts, certainly the part that I almost walked through. When you see sleeping bags, sheets, clothing, and trash scattered all about in a pitch black area, going another way is a good option hehe. I use to squeeze into dank wet fenced off caves and I don't think I'd want to even drive my lifted pickup through those under access roads or whatever they are. Maybe I'm just turning into a pussy with age.

Good call, GarCastle. City estimates of our homeless population only count those who live above ground, bathe in fountains and settle their feuds in Love Park. Your neck hair may have saved you. Check out Jennifer Toth's book on the Mole People. There are micro societies who live in the urban subway/steampipe infrastructures we never see. If truth be stranger than fiction, here it is.

[theWatusi]

Thanks, you (with much detail) answered my question.

I'm curious if those rail lines are still used. They are probably those that bypass 30th St Station to the west and possibly used to service the post office. If they are active, I suppose the demo of that part of the site would be a slow and arduous process.

[LittleMike]

Maybe Cities of the Underworld should do an episode on these "Mole People"

[gttx]

There are a couple of cranes up (not tower cranes yet) in the big pit adjacent to Walnut St.

Hopefully I'll be able to do weekly updates as this tower rises - I pass the site every day on the way to and from class.

[theWatusi]

That would be appreciated

[Lincolndrive]

It does look like a crain from a distance but its not. I think its one of those jack hammer type machines that pounds steel into the ground.

[Lincolndrive]

[gttx]

The President and CEO of Brandywine, Jerry Sweeney, spoke last night at Penn. I asked him about this project afterward, and here is a summary of his response:

- They have proceeded with demolition at the site (which we can see)
- They are building the parking structure only (with retail at the base) right now
- The office tower is pending a lead tenant, which probably won't happen any time soon given the volatility in the market
- There was no mention at all of the residential/hotel tower, but I would imagine it won't be moving forward soon either

All in all, kind of disappointing news.

[sciguy0504]

I think an appropriately-priced rental tower (for the area) would be a hit.

[SeattleJim]

Originally Posted by gttx

The President and CEO of Brandywine, Jerry Sweeney, spoke last night at Penn. I asked him about this project afterward, and here is a summary of his response:

- They have proceeded with demolition at the site (which we can see)
- They are building the parking structure only (with retail at the base) right now
- The office tower is pending a lead tenant, which probably won't happen any time soon given the volatility in the market
- There was no mention at all of the residential/hotel tower, but I would imagine it won't be moving forward soon either

All in all, kind of disappointing news.

And not surprising either.

[Lincolndrive]

[We Got Five]

BlackRock: 'No timetable' on possible move to Philly's Cira 2

BlackRock Inc.'s possible move to Philadelphia is on hold, another hostage to the weak investment markets.

Remember last summer, how Gov. Rendell, Mayor Nutter and the state and city governments rolled over to give BlackRock Inc. all the property and sales tax breaks it wanted, in order to lure up to 1,500 New Jersey investment jobs to Brandywine Realty Trust's proposed Cira II tower in West Philadelphia? Brandywine hoped to know by now if the deal was a go. July 31 PhillyDeals item here

BlackRock has come through the ensuing market crash better than less conservative companies. But its business plan is unsettled: "We have an ongoing process to evaluate" what businesses will grow and what will be cut as the investment markets settle, spokeswoman Bobbie Collins told PhillyDeals today. "No decisions have been made," and "there is currently no timetable" for deciding whether to keep those jobs in central Jersey or move them to U-City.

BlackRock's direction might depend partly on BlackRock's soon-to-be major owner, Bank of America Corp., which plans to acquire Merrill Lynch on Dec. 1, emptying blocs of the brokerage's New York and New Jersey office space. (PNC Financial Services Group and BlackRock managers are the other owners.)

We called Collins after BlackRock CEO Laurence D. Fink gave a homily on the troubled state of the investment markets, after presenting BlackRock's earnings report, which disappointed investors, who drove the stock down $11 to around $132 in morning trading.

"Every asset class has suffered, and all market participants have been affected. No one, including BlackRock, is immune," Fink said in a conference call with investors. Investment fees fell $77 million to $1.08 billion in the quarter. Expenses also fell, but Fink said BlackRock has actually boosted basic payroll by $28 million (partly through mergers) over the past year, while reducing incentive bonuses.

BlackRock is mostly a meat-and-potatoes bond and stock manager, and Fink expects, once the market stabilizes, to benefit from the "extreme pressure" that will drive investors out of the hot assets of the early 2000s -- hedge funds, private equity and real estate. "We believe there's going to be a huge washout in hedge funds, we believe there's going to be a very large washout in private equities."

Fink noted that some big pension funds and foundations (he might have mentioned the Pennsylvania Public Employees' Retirement System, but he didn't) "have 30 to 50 % of their assets in alternatives." He predicted such clients will dump those investments and return to stocks and bonds, though investments in apartment buildings and some other real estate may also prosper. BlackRock also hopes to be named a manager for the federal bank bailout program, which Fink said will be a low-margin but high-volume business.

"Ken Lewis, the CEO of Bank of America, I think he's very excited about working alongside BlackRock. But we have not had any conversations (about that) yet," Fink said. "In the next few weeks we will begin our conversations with Bank of America. I'm sure they're going to be very positive." He promised "to help (BofA's) shareholders."

[Palms]

Yes it is looking like plan B may be necessary, whatever that is.

Blackrock +BOA + all kinds of impending available office space in NYC/NNJ = 5 story parking garage for Cira South.

[Jes44]

I have to believe when you have been offered tax breaks for a whole number of years extended for a number of years well into the future, it would be foolish to overlook them especially in today's financial mess. Plus the close geography to offices in Wilmington, DE and conveniece to 30th Street Station for travelers. I think if they dont take it, the city should turn its attention to some other corporation to come into the city from elsewhere.

[Don098]

Did UPenn and Brandywine have a deadline in their heads for having a tenant? Like a month or a quarter in a specific year? No one can make reliable long-term forecasts because of the market's current volatility. Almost every company is the country is tightening their belts in the form of layoffs, hiring freezes, pauses on their long-term plans, etc. because no one can plan ahead when the DOW swings 100 points inside of a minute - and that's no exaggeration. At least according to my father's financial adviser, the market probably has yet to bottom out because the full effects of this economy still aren't being felt on a mass scale nation-wide, and I'm not saying this from the clueless, alien planet of the ultra-rich either: I'm struggling in between jobs and my father was laid off from a nearly 6-figure job that he held with a German-based company for nearly 25 years. Once that true bottoming-out happens, at least some semblance of stability will (hopefully) return to wall street along with a subsequent thawing of the credit market I would hope, and companies will finally be able to sit down, reassess their remaining assets and health of their company, and re-evaluate the viability of their previous long-term goals and business plans. So don't expect any news on any proposed project until things at least stabilize.

At that point, I think Blackrock may find Cira South especially attractive because of the multi-decadal KOZ status which would be attractive to a firm looking to recoup their losses any way possible. Philadelphia may also be more attractive than say, New York, because the city by several measures is weathering this storm better than others. The location next to the busiest passenger railroad corridor in the United States will be a pull factor for years to come (Amtrak just had its budget doubled after reporting consistent record ridership and Congress finally realizing the value of a diversified transportation network). I honestly think that everything is paused, not stopped. No one can commit to anything right now so I didn't find that article particularly surprising or disappointing, just simply realistic. It's going to be a slow few more months, but I look for lots of activity with a number of these projects in Philadelphia during 2009. Patience is the current virtue, not panic.

[SSBMEXPERT]

So is there anymore news on this? What's happening at the site? Anything worth taking pics of?

[Lincolndrive]

http://www.philly.com/philly/blogs/inq-phillydeals/Brandywine_No_plan_to_start_Cira_2_tower_.html

Stung by higher borrowing costs and slower office demand, Brandywine Realty Trust cut its dividend and said it has no plans to start work on its proposed Cira 2 office towers next to Penn's West Philadelphia campus. It's trying to get a tax break to attract financing for its planned Internal Revenue Service office renovation at the former 30th Street post office.

"At the current time we don't have plans to start either one of those towers" proposed for Cira 2, Brandywine Realty Trust's University City expansion project, chief executive Gerard Sweeney told investors in a conference call this morning.

Mayor Nutter and Gov. Rendell has delivered tax breaks for the site in an attempt to lure up to 1,500 jobs from BlackRock Inc. in New Jersey. But BlackRock has a big new co-owner (Bank of America Corp.), its business (investments) is in turmoil, and it hasn't decided when, or if, it will add Philly jobs.

Questioned by analysts, Sweeney said "a couple of larger tenants are looking at a large bloc of space" in the complex, but "in this environment" he's not scheduling work. Brandywine has at least until 2010 to begin hanging iron or face losing the site, he added.

Also, Brandywine is continuing work on a parking garage at the former Post Office Annex across Walnut St. But it's taken its completed, mostly leased Cira 1 tower off the market, ending the search for an investor, until investment conditions improve. Instead it'll try to sell some suburban Philadelphia buildings. And it's still looking for a partner to help redevelop the Post Office for its main proposed tenant, the federal Internal Revenue Service. Sweeney said he hopes to secure a historic-building tax break for a potential investor.