PHILADELPHIA | Highrise Development Thread IX - Page 53

McBane · #**1041** Posted **Jan 30, 2014, 1:07 PM**

Quote:

Originally Posted by PhiLaw

PREIT buys the scourge of my life - that ugly site on 15th and Walnut

http://www.philly.com/philly/blogs/inq-phillydeals/PREIT-buys-15th--Walnut-corner.html

What's so terrible about this building? I mean, I see it can use a little sprucing up, but otherwise, it's a nice old building with an acceptable height. Are the top floors vacant?

If the folks across the street - building something from scratch - couldn't build more than three floors, then I don't think we can expect anything more than just a renovation. Probably apartments on the upper floors?

GarCastle · #**1042** Posted **Jan 30, 2014, 1:39 PM**

May not be the most recent news, but I just came across it.

"In other construction news, work continues on the South Pavilion of the Perelman Center for Advanced Medicine. Once completed in the first quarter of 2015, many additional clinical outpatient services from both HUP and Penn Tower will move into the Perelman Center. Other employees currently in Penn Tower will move into HUP or to locations off campus, such as Market Street.
Black (COO) said that both Penn Tower and its garage are planned to come down some time in 2015. A new parking garage, next to Lot 51, will replace the PT garage for visitor parking. While not yet approved by the Board of Trustees, the hope is to build an inpatient tower on the current site of Penn Tower."

They've been talking about this for years and each previous attempt to empty Penn Tower has failed due to volume of employees. So we'll see, and I'm not super psyched about the use of the word "hope"... If they tear down Penn Tower and its garage, they better do something with the space. LOL.

Cheers,
G.

tsarstruck · #**1043** Posted **Jan 30, 2014, 2:37 PM**

More from that Preit article:

"His company has already put out requests for proposals to build a hotel tower and a residential tower above portions of the Gallery."

Another hotel? I have to wonder what kind of changing dynamic in the city hoteliers are seeing that I'm blind to. Also, I'd forgotten that PREIT had a sizable stake in Market8. Interesting...

shadowbat2 · #**1044** Posted **Jan 30, 2014, 3:35 PM**

Quote:

Plan for Gallery Kmart: Not just one store

The owners of the Gallery don't plan to replace Kmart with another store when it closes in April.

Instead, the plan is to replace the two-story discount retailer with multiple stores, Joseph F. Coradino, chief executive at the Pennsylvania Real Estate Investment Trust (PREIT), disclosed before speaking to a group of retail real estate professionals at Villanova University on Wednesday.

PREIT, based in Center City, operates 35 malls around the nation and eight in the region, including Cherry Hill Mall, Moorestown Mall, and Plymouth Meeting Mall as well as the Gallery.

The plan for the Gallery Kmart space would put an end to what has always been an awkward retail situation, with the store's central selling space doing double duty as a mall pass-through corridor.

"The situation of walking through a store like that, you can count on two hands" throughout the nation, Coradino said.

The move to create more traditional shops along what will become a normal mall corridor will put more emphasis on the Gallery's anchors, Coradino said.

While the Gallery may appear to be one entity, several sections of it along Market Street had been owned by different companies. PREIT bought the Kmart building last year and now has control over the entire Gallery.

"We've been working on that project for 10 years," said Coradino, the main speaker at the area chapter of the International Council of Shopping Center's Next Generation CEO breakfast.

"It was the most difficult acquisition that we ever made," he said.

Coradino was careful not to be specific about any plans for the Gallery, particularly the vacant first floor of the former Strawbridge & Clothier store at Eighth and Market Streets.

But he said the demographics of the city, the growing population of young people, and the presence of 20 million commuters exiting the Market Street East train station below the Gallery provide an opportunity to "transform the retail scene in Philadelphia. We're happy to do that on Market East."

His company has already put out requests for proposals to build a hotel tower and a residential tower above portions of the Gallery.

Read more at http://www.philly.com/philly/business/20..._just_one_store.html#EQEir8r7KMXqSIxF.99

relnahe · #**1045** Posted **Jan 30, 2014, 3:41 PM**

Quote:

Originally Posted by McBane

If the folks across the street - building something from scratch - couldn't build more than three floors, then I don't think we can expect anything more than just a renovation.

Where did this idea come from that they "couldn't" build more than three floors? They choose not to build to build more than three floors.

hammersklavier · #**1046** Posted **Jan 30, 2014, 3:43 PM**

Quote:

Originally Posted by tsarstruck

More from that Preit article:

"His company has already put out requests for proposals to build a hotel tower and a residential tower above portions of the Gallery."

Another hotel? I have to wonder what kind of changing dynamic in the city hoteliers are seeing that I'm blind to. Also, I'd forgotten that PREIT had a sizable stake in Market8. Interesting...

Quotes are from this PREIT article:

http://www.philly.com/philly/business/20140130_Plan_for_Gallery_Kmart__Not_just_one_store.html

relnahe · #**1047** Posted **Jan 30, 2014, 3:47 PM**

Quote:

Originally Posted by tsarstruck

More from that Preit article:

"His company has already put out requests for proposals to build a hotel tower and a residential tower above portions of the Gallery."

Another hotel? I have to wonder what kind of changing dynamic in the city hoteliers are seeing that I'm blind to. Also, I'd forgotten that PREIT had a sizable stake in Market8. Interesting...

Probably that Philadelphia is more grossly underserved by hotels than any other city imho. For the fifth largest city and a top tourism city it has way too few hotels. Most people I talk to where I live who visit Philadelphia have to get rooms out in in the burbs usually because everything is booked.

PhiLaw · #**1048** Posted **Jan 30, 2014, 3:59 PM**

Quote:

Originally Posted by McBane

What's so terrible about this building? I mean, I see it can use a little sprucing up, but otherwise, it's a nice old building with an acceptable height. Are the top floors vacant?

If the folks across the street - building something from scratch - couldn't build more than three floors, then I don't think we can expect anything more than just a renovation. Probably apartments on the upper floors?

I'm not talking about the building itself - I'm talking g about the ugly corner store and it's current state of disrepair. An eye sore on walnut st.

summersm343 · #**1049** Posted **Jan 30, 2014, 4:05 PM**

Two towers on top of the Gallery? Nice! About time! With these, the Girard Square block and possibly Market8, the skyline will be transformed to the East.

summersm343 · #**1050** Posted **Jan 30, 2014, 4:06 PM**

Renovations of 1900 Market to Class A office space and what it will look like:

http://www.bizjournals.com/philadelphia/...ak-peak-at-a-redesigned-1900-market.html

tsarstruck · #**1051** Posted **Jan 30, 2014, 4:09 PM**

Quote:

Originally Posted by relnahe

Probably that Philadelphia is more grossly underserved by hotels than any other city imho. For the fifth largest city and a top tourism city it has way too few hotels. Most people I talk to where I live who visit Philadelphia have to get rooms out in in the burbs usually because everything is booked.

But hotel rates really don't bear that out. Philly hotel rooms are cheap for a reason: not enough demand for the supply.

Jelly Roll · #**1052** Posted **Jan 30, 2014, 4:24 PM**

Quote:

Originally Posted by tsarstruck

More from that Preit article:

"His company has already put out requests for proposals to build a hotel tower and a residential tower above portions of the Gallery."

Another hotel? I have to wonder what kind of changing dynamic in the city hoteliers are seeing that I'm blind to. Also, I'd forgotten that PREIT had a sizable stake in Market8. Interesting...

I am curious to see what the residential portion of this will look like. I wonder if they will try to replicate Time Warner Center with luxury retail tenants and luxury apartments with a 4 or 5 Star Hotel. Now that this whole area is zoned Super CX-5 Philadelphia has the ability to build a brand new highrise residential corridor with high end retail at the base along with potentially three new hotels if Market 8, the two gallery towers, and the Girard Square proposals all go through.

Londonee · #**1053** Posted **Jan 30, 2014, 4:51 PM**

Quote:

Originally Posted by tsarstruck

More from that Preit article:

"His company has already put out requests for proposals to build a hotel tower and a residential tower above portions of the Gallery."

You too can live and work above a shitty mall! These RFPs are nonsense until PREIT announces its reno plans and dates.

Coradino talks more than anybody in town, every 6 months he comes out with a quick update on the Gallery that's advancing the ball 1 inch at a time--when Market East needs a 99 yard scoring drive.

Perhaps they are waiting on the casino announcement...

jn00 · #**1054** Posted **Jan 30, 2014, 6:21 PM**

Quote:

Originally Posted by Londonee

You too can live and work above a shitty mall! These RFPs are nonsense until PREIT announces its reno plans and dates.

Coradino talks more than anybody in town, every 6 months he comes out with a quick update on the Gallery that's advancing the ball 1 inch at a time--when Market East needs a 99 yard scoring drive.

Perhaps they are waiting on the casino announcement...

I'm equally frustrated but hopeful. There have been a lot of recent positives over the past several years adding up for market east and with such a large property, things take time..

- Signage ordinance allowing advertising predicated on improvements, which could be an important part of financing.
- PREIT acquiring K-mart piece of Gallery.
- K-mart leaving and PREIT to convert to more typical layout - having a walkthrough anchor never made sense anyway.
- Market8 if selected.
- Girard Square (more frustrated by this since it's been more fully in the control of the owners)
- Eataly and Bloomingdales rumors.
- Inquiror and PPA employees moving to Market East.
- Improvements to Dow building.
- Various Chestnut east redevelopments.
- Marshall's opening.

iheartphilly · #**1055** Posted **Jan 30, 2014, 6:53 PM**

Another highrise apartment to be constructed in University City District. Don't remember if another poster started a thread or not, but the start of construction appears to be in February.

see link:
http://www.bizjournals.com/philadelphia/...-residential-tower-moves-forward-in.html

msquaredb · #**1056** Posted **Jan 30, 2014, 7:23 PM**

Quote:

Originally Posted by iheartphilly

Another highrise apartment to be constructed in University City District. Don't remember if another poster started a thread or not, but the start of construction appears to be in February.

see link:
http://www.bizjournals.com/philadelphia/...-residential-tower-moves-forward-in.html

I believe this is the thread that you are looking for:

3601 Market Street

PhiLaw · #**1057** Posted **Jan 30, 2014, 7:37 PM**

I wonder how close to BLT Architects' previous plans the new tower(s) will be.

iamrobk · #**1058** Posted **Jan 30, 2014, 8:08 PM**

Really crazy how much development has popped up over the last year or so, wow.

McBane · #**1059** Posted **Jan 30, 2014, 8:24 PM**

Quote:

Originally Posted by relnahe

Where did this idea come from that they "couldn't" build more than three floors? They choose not to build to build more than three floors.

I think you may have misinterpreted. I didn't mean "couldn't build taller" as in zoning issues or another restriction. I meant "couldn't" as in, it wasn't financially feasible/too risky to incorporate another few floors for residential or office use. (I beg to differ but then again, it's not my money on the line.)

Jelly Roll · #**1060** Posted **Jan 30, 2014, 10:02 PM**

Quote:

Originally Posted by Londonee

It's true, Toll was the first thing that popped into my head--but they do currently have two VERY BIG shovels in the ground in the city--and with their interest in the Rittenhouse property i wouldn't be surprised to see a 3rd by year's end. But yeah, Forest City is huge--according to Wikipedia they have 2500+ employees and handle $10.5 billion in assets.

Having small local developers obviously isn't a bad thing in and of itself, but it's impossible to reach critical mass that i think Philly is capable of with just these guys, because when one goes through an ugly divorce (Blumenfeld), gets distracted with a pipe dream (Blatstein), or dies (Wheeler) development on their owned parcels grinds to a total stop--for years.

Quote:

Originally Posted by hammersklavier

Perhaps the fairer question is: "How many employees does Forest City have?" Remember that they're one of the major developers in NYC and DC; Toll Brothers' efforts are mainly concentrated in the exurbs.

This is from a few days ago but you both know that Forest City does own real estate in Philadelphia and they are the developer of Museum Tower 2? I would consider Museum Tower, The Drake Tower, The Lofts at 1835 Arch, and One Franklin Town to be a decent amount of apartments to own in Philadelphia.