PHILADELPHIA | Highrise Development Thread IX - Page 322

summersm343 · #**6421** Posted **Feb 2, 2015, 5:45 PM**

Tennessee Company set to buy Rittenhouse Parcel for $30M

Quote:

Southern Land Co. has put 1900 Walnut St. in Center City under contract for roughly $30 million.

This would be the second Philadelphia deal for the Nashville, Tenn., real estate company. It is developing 3601 Market St., a 28-story building with 368 apartments in University City that is scheduled to open this year.

The site at 1900 Walnut is high profile and overlooks Rittenhouse Square, one of the most coveted addresses in Philadelphia. Since 2007, Castleway Properties of Ireland has owned the parcel and put it up for sale two years ago.

The site has a long history of not being developed in spite of its prime location. (For more on that see this story.) At one point, Toll Brothers Inc. (NYSE: TOL) took a look at the site but later decided not to pursue it.

It now appears Southern Land has negotiated the right to buy the property for $30 million unless it is able to rezone it to allow for denser development. If it is successful in rezoning the parcel, it will pay an additional $10 million, according to documents detailing the arrangement.

Southern Land said in these documents that it has met with city planners and the Center City Residents Association and "there appears to be support for a rezoning, as they both want the site developed."

If the rezoning does not happen, Southern Land will seek to construct a structure that would have 220 apartments, 50 condos, 27,500 square feet of retail space and parking. If the rezoning does go through, the real estate company will build a larger development that will include 360 apartments, 65 condos and 27,500 square feet of retail. The company is looking for an investment partner to fund at least 90 percent of the cost to build either project.

If all goes as planned, a deal is scheduled to close on it sometime this month.

http://www.bizjournals.com/philadelphia/...mpany-set-to-buy-rittenhouse-square.html

The Skyscraperpage Forum Thread for the project is here:
http://forum.skyscraperpage.com/showthread.php?p=6898763&posted=1#post6898763

McBane · #**6422** Posted **Feb 2, 2015, 6:35 PM**

The market is tight now b/c there was a brief pause in condo construction after the class of the mid 2000's condos were built (St. James, Murano, RITR, Symphony House, etc.). Many builders either pulled the plug or opted to build rentals instead. It doesn't surprise me that condos are in demand, although as some of the condos being developed now begin to open, the market will re-balance.

Outta here · #**6423** Posted **Feb 2, 2015, 6:38 PM**

I may have asked this question in the past but failed to write the data
down . So please forgive my repetitive nature .

I noticed that there are two different height limits posted for the SLS
tower on Broad st.
One proposal lists it at 590' while another lists it at 562' .... Am I to
assume that is due to no final proposal being confirmed at this date , or is one just a
typo ........

Philly Fan · #**6424** Posted **Feb 2, 2015, 6:57 PM**

Quote:

Originally Posted by McBane

It doesn't surprise me that condos are in demand, although as some of the condos being developed now begin to open, the market will re-balance.

Unless demand continues to increase over the near- and mid-term, which it might. This may be a bit Pollyannaish, but it could be that Philly has entered a transformational period of development where it's reached a critical mass, aligning with the trend of renewed urbanism among both Millennials and empty-nester Baby Boomers, along with the continuing growth in Eds/Meds/Tech/Comcast/etc., and positive Philly press in the national media (NY Times Travel, etc.).

In other words, this may not be just one of the business-as-usual Philly real estate cycles of the past.

At least we can hope.

1487 · #**6425** Posted **Feb 2, 2015, 7:43 PM**

Quote:

Originally Posted by summersm343

There is also the 500 Walnut building.
http://www.phillymag.com/property/2014/03/11/another-rendering-glass-tower-500-walnut/

And the final floors of Two Liberty Place are being converted to condos as well.
http://www.bizjournals.com/philadelphia/...rty-to-convert-empty-space.html?page=all

True, I did forget about those two, although the liberty place units are super high end and probably dont overlap much with the other product coming to market- except SLS.

summersm343 · #**6426** Posted **Feb 2, 2015, 9:02 PM**

Quote:

Originally Posted by 1487

True, I did forget about those two, although the liberty place units are super high end and probably dont overlap much with the other product coming to market- except SLS.

500 Walnut will probably be more high end than SLS and Two Liberty. This is the same developer of 1706 Rittenhouse.

Read this:
http://philly.curbed.com/archives/2014/11/11/the-fact-sheet-for-500-walnut-is-luxiously-bonkers.php

acenturi · #**6427** Posted **Feb 2, 2015, 9:59 PM**

Quote:

Originally Posted by summersm343

500 Walnut will probably be more high end than SLS and Two Liberty. This is the same developer of 1706 Rittenhouse.

Read this:
http://philly.curbed.com/archives/2014/11/11/the-fact-sheet-for-500-walnut-is-luxiously-bonkers.php

This is a very interesting dynamic graphic showing the average income in the areas surrounding the Philly mass transit systems. Makes it obvious as to why they chose 500 Walnut for the tower.
Roll your mouse over the appropriate Line.
http://youarehere.cc/j/subway/philadelphia.html

jsbrook · #**6428** Posted **Feb 3, 2015, 12:04 AM**

Quote:

Originally Posted by 1487

True, I did forget about those two, although the liberty place units are super high end and probably dont overlap much with the other product coming to market- except SLS.

One Riverside will probably be on par with SLS and Two Liberty. You can expect One to be on par with 10 Rittenhouse. Maybe even pricier based on info released on price per square foot. As summers noted, 500 Walnut can be expected to be the priciest of the bunch. Very large units for a super luxury buyer like 1706, Scannapieco's original ultra luxury development.

jsbrook · #**6429** Posted **Feb 3, 2015, 12:09 AM**

Quote:

Originally Posted by Philly Fan

Unless demand continues to increase over the near- and mid-term, which it might. This may be a bit Pollyannaish, but it could be that Philly has entered a transformational period of development where it's reached a critical mass, aligning with the trend of renewed urbanism among both Millennials and empty-nester Baby Boomers, along with the continuing growth in Eds/Meds/Tech/Comcast/etc., and positive Philly press in the national media (NY Times Travel, etc.).

In other words, this may not be just one of the business-as-usual Philly real estate cycles of the past.

At least we can hope.

I think we will continue to see a sustained influx of youth and empty nesters/retirees (eventually, it will be a different demographic than current Millennials and Baby Boomers). That's probably enough to bolster and shore up condo development in the short-term. But for sustained and continued growth, we really do need get people to stop leaving in their mid-thirties once kid two comes around or kids reach school age. We're not there just yet.

Late1 · #**6430** Posted **Feb 3, 2015, 1:49 AM**

Quote:

Originally Posted by Outta here

I may have asked this question in the past but failed to write the data
down . So please forgive my repetitive nature .

I noticed that there are two different height limits posted for the SLS
tower on Broad st.
One proposal lists it at 590' while another lists it at 562' .... Am I to
assume that is due to no final proposal being confirmed at this date , or is one just a
typo ........

SLS was originally proposed slightly shorter (don't recall the original height off the top of my head, but it very well could have been 562'. But then the developers announced a height increase to 590', so that's the official proposal now.

FiggyOlive · #**6431** Posted **Feb 3, 2015, 4:08 AM**

Quote:

Originally Posted by jsbrook

I think we will continue to see a sustained influx of youth and empty nesters/retirees (eventually, it will be a different demographic than current Millennials and Baby Boomers). That's probably enough to bolster and shore up condo development in the short-term. But for sustained and continued growth, we really do need get people to stop leaving in their mid-thirties once kid two comes around or kids reach school age. We're not there just yet.

Great article on changing climate (at least for kid one):
http://www.phillymag.com/articles/moonstone-preschool-bella-vista/

jsbrook · #**6432** Posted **Feb 3, 2015, 12:30 PM**

Quote:

Originally Posted by FiggyOlive

Great article on changing climate (at least for kid one):
http://www.phillymag.com/articles/moonstone-preschool-bella-vista/

Good find, Figgy. And the New York craziness spreads. If it keeps more people in the city, I'm not complaining.

Outta here · #**6433** Posted **Feb 3, 2015, 3:25 PM**

Quote:

Originally Posted by Late1

SLS was originally proposed slightly shorter (don't recall the original height off the top of my head, but it very well could have been 562'. But then the developers announced a height increase to 590', so that's the official proposal now.

Thanks for bringing me up to date on that one .

josef · #**6434** Posted **Feb 3, 2015, 7:31 PM**

Anyone see this article on Philly Voice?

"Is Philadelphia finally getting the skyline it deserves?"
http://www.phillyvoice.com/what-philly-will-look-2025/

iheartphilly · #**6435** Posted **Feb 3, 2015, 8:17 PM**

Center City apartment tower comes up for sale, seeks big sale price of $160M

http://www.bizjournals.com/philadelphia/...y-apartment-tower-comes-up-for-sale.html

Didn't think this was going up for sale this quick...and the seller is looking for a 60% on ROI. WOW...I'm in the wrong business...LOL.

Larry King · #**6436** Posted **Feb 3, 2015, 8:37 PM**

Quote:

Originally Posted by iheartphilly

Center City apartment tower comes up for sale, seeks big sale price of $160M

http://www.bizjournals.com/philadelphia/...y-apartment-tower-comes-up-for-sale.html

Didn't think this was going up for sale this quick...and the seller is looking for a 60% on ROI. WOW...I'm in the wrong business...LOL.

They were getting insane offers before the building was even occupied. It's a good time to sell apartments

boxbot · #**6437** Posted **Feb 3, 2015, 9:10 PM**

Quote:

Originally Posted by Larry King

They were getting insane offers before the building was even occupied. It's a good time to sell apartments

$160m for that ugly thing? One of the examples where the renders actually looked a lot better than the finished project.

jsbrook · #**6438** Posted **Feb 4, 2015, 12:43 AM**

Quote:

Originally Posted by boxbot

$160m for that ugly thing? One of the examples where the renders actually looked a lot better than the finished project.

Maybe. But it's new, with quality finishes (interior) and amenities and offers larger flooplans than anything now coming to market (like AQ Rittenhouse and 3737 Chestnut). It's going to command strong rents for many years to come.

Philly Fan · #**6439** Posted **Feb 4, 2015, 3:06 PM**

New Inquirer article relevant to several recent discussions in this thread:

Dranoff to market, sell Residences at Two Liberty Place

http://www.philly.com/philly/business/20...o_Liberty_Place.html#6jUdLvDtmEbDtqGB.99

And note this from the article: "Prices are expected to range from $650 to $1,250 per square foot, said Marianne Harris, Dranoff Properties' marketing director."

1487 · #**6440** Posted **Feb 4, 2015, 6:11 PM**

Quote:

Originally Posted by Philly Fan

New Inquirer article relevant to several recent discussions in this thread:

Dranoff to market, sell Residences at Two Liberty Place

http://www.philly.com/philly/business/20...o_Liberty_Place.html#6jUdLvDtmEbDtqGB.99

And note this from the article: "Prices are expected to range from $650 to $1,250 per square foot, said Marianne Harris, Dranoff Properties' marketing director."

Good to know 10 Rittenhouse is sold out.