PHILADELPHIA | Highrise Development Thread IX

[Jayfar]

Originally Posted by summersm343

Gallery developers buy 3 more Market Street buildings
Maybe a nice highrise redevelopment opportunity?



http://www.bizjournals.com/philadelphia/...acerich-buy-market-street-buildings.html

The Inky article suggests they plan to lease out the existing buildings on the south side of the street, but more relevant to hi-rise development is this bit at the end:

There are also three development "pads" on the Gallery's roof that can each accommodate a 15- to 20-story tower.

Plans for those sites - which could include apartment buildings or a hotel - will solidify once the outlet mall's development is farther along, Coradino said.

"Their value is enhanced once we're able to say, 'Here's the project we're doing, and here are the tenants we have,' " he said.


Read more at http://www.philly.com/philly/business/20...t_St__buildings.html#Rh8PjYDWoBadFuQW.99

Ideally they should be building on the pads concurrent with the Gallery remake, rather than disrupt things again after the Gallery re-opens. The renewed Gallery won't be so attractive to customers if it's surrounded by scaffolding in order to construct multiple towers overhead.

[summersm343]

More from Philly.com

As their proposal for the so-called Fashion Outlets of Philadelphia was coming together, Pennsylvania Real Estate Investment Trust (PREIT) and Macerich Co. were quietly buying up property across the street.

The acquisition of three buildings on the 1000 block of Market Street show the developers' bullishness on the area's resurgence, which the $325 million Gallery project aims to fuel.

The properties line the southern side of Market Street between the Marshalls and Freire Charter School building at 10th Street and the Rite Aid at 11th Street, and include the former Robinson's department store.

The buildings' current occupants include a branch of the City Blue sportswear chain, two cash-for-gold shops, and the Funkomatic electronics store. Other storefronts are vacant.

PREIT and Santa Monica, Calif.-based Macerich plan to find new tenants for the properties after the redeveloped mall's occupants have been selected, Coradino said.

The companies are now openly seeking additional nearby properties, to the Gallery's north and south, Coradino said.

"Everything along there is of interest to us," he said.

The Market Street parcels aren't the only place where PREIT and Macerich might be able to leverage the Fashion Outlets project. There are also three development "pads" on the Gallery's roof that can each accommodate a 15- to 20-story tower.

Plans for those sites - which could include apartment buildings or a hotel - will solidify once the outlet mall's development is farther along, Coradino said.

Read more at http://www.philly.com/philly/business/20...t_St__buildings.html#00OVLOrErsh4qCEq.99

[summersm343]

Originally Posted by Jayfar

The Inky article suggests they plan to lease out the existing buildings on the south side of the street, but more relevant to hi-rise development is this bit at the end:

Ideally they should be building on the pads concurrent with the Gallery remake, rather than disrupt things again after the Gallery re-opens. The renewed Gallery won't be so attractive to customers if it's surrounded by scaffolding in order to construct multiple towers overhead.

Lol, I just posted the same thing.

[Londonee]

Originally Posted by Jayfar

Ideally they should be building on the pads concurrent with the Gallery remake, rather than disrupt things again after the Gallery re-opens. The renewed Gallery won't be so attractive to customers if it's surrounded by scaffolding in order to construct multiple towers overhead.

In Coradino's own words, ""Their value is enhanced once we're able to say, 'Here's the project we're doing, and here are the tenants we have."

So let me get this straight, Joe, you still don't know what project you're doing and what tenants you have? You've just closed down the whole building, now a massive hulking shell, punted the timeline almost 2 years, and still have no idea what you're doing with the facility.

Honestly, the fact that these guys bought these additional properties is terrible news - it could be 10 years before we see new tenants/development here. The article states that they won't look to do anything with these properties till they have tenants lined up at the Gallery, nice. The whole city is turning over and redeveloping at a rapid clip and here's PREIT acting like it's Philadelphia circa 1994. I hope Brandywine and Brickstone continue to make inroads on Market East - having this incompetent, tasteless company own these massive super blocks is really inhibitive.

[hammersklavier]

Beautiful video from the blizzard a couple of weeks ago:

• Video Link

Originally Posted by Jayfar

The Inky article suggests they plan to lease out the existing buildings on the south side of the street, but more relevant to hi-rise development is this bit at the end:



Ideally they should be building on the pads concurrent with the Gallery remake, rather than disrupt things again after the Gallery re-opens. The renewed Gallery won't be so attractive to customers if it's surrounded by scaffolding in order to construct multiple towers overhead.

*head meet desk*

An Open Letter to Joe Coradino, CEO, PREIT:

Dear Mr. Coradino,

Do you see what your competitors at East Market across the street are doing with their redevelopment? Do you notice how they are, in fact, developing one of their high-rises concurrent with their retail base?

Isn't the same thing also possible with the Gallery? Especially if you have a residential tower planned?

Sincerely,
Skyscraper Page

[Nightman]

Things seem to be booming here but Philadelphia didn't make the top 20 for construction starts.

http://www.forbes.com/sites/erincarlyle/...he-most-new-construction/2/#6f3fb9c3348f

[Outta here]

Originally Posted by Nightman

Things seem to be booming here but Philadelphia didn't make the top 20 for construction starts.

http://www.forbes.com/sites/erincarlyle/...he-most-new-construction/2/#6f3fb9c3348f

LAKE CHARLES LA. at #11..... And Philly not in the top 20 ??

[summersm343]

Originally Posted by Nightman

Things seem to be booming here but Philadelphia didn't make the top 20 for construction starts.

http://www.forbes.com/sites/erincarlyle/...he-most-new-construction/2/#6f3fb9c3348f

Oh Forbes and their ridiculous lists haha. Do you really think Lake Charles, Louisiana has more construction than Philadelphia?

Here are the ACTUAL numbers. Philadelphia ranks #15 for 2015, and ranked at #8 for 2014, which is why there really is a lot under construction:
http://construction.com/about-us/press/Commercial-and-Multifamily-Construction-Starts-in-2015.asp

[summersm343]

Carpenter Technology to relocate HQ to Philadelphia

Carpenter Technology Corp. is planning to relocate its corporate headquarters to Philadelphia from Wyomissing, Pa.

The company, which makes titanium alloys and powder metals, expects to have 100 people working from its new Philadelphia corporate offices. The company has not selected a building in Center City but has launched a search.

“This new headquarters location will allow the company to deepen its customer relationships and play a more integral role in the development of its customers’ products,” the company said in a release. It will also allow the company to have better access to transportation, local universities from which it can recruit and make it more visible.

The company has 2,300 people working from the Reading, Pa., area and those employees will continue to operate from its manufacturing facilities there. There are no planned job reductions, the company said.

http://www.bizjournals.com/philadelphia/...relocating-headquarters-philly-wyom.html

[BenKatzPhillytoParis]

Originally Posted by summersm343

Carpenter Technology to relocate HQ to Philadelphia



http://www.bizjournals.com/philadelphia/...relocating-headquarters-philly-wyom.html

Seems like we have really been racking up new leases lately! When are we gonna get a commercial high-rise on spec?

[1487]

Originally Posted by BenKatzPhillytoParis

Seems like we have really been racking up new leases lately! When are we gonna get a commercial high-rise on spec?

all you need is one major tenant to decide they dont want to go into an old building. The bad news is Sunoco just left for the burbs which opened up a big vacancy and soon FMC will move to the new tower which creates another big hole.

[Knight Hospitaller]

Originally Posted by 1487

The bad news is Sunoco just left for the burbs

And are now heading for Dallas...

[summersm343]

Originally Posted by Knight Hospitaller

And are now heading for Dallas...

No they're not. I think you misread that. It's their Corpus Christi offices that are moving to Dallas, not their PA headquarters.

Houston-based Sunoco LP (NYSE: SUN) is moving forward with plans to relocate its Corpus Christi, Texas office to Dallas. But the move means more than 150 office workers in Corpus Christi will lose their jobs.

http://www.bizjournals.com/philadelphia/...ut-jobs-before-relocating-office-to.html

[summersm343]

Originally Posted by 1487

all you need is one major tenant to decide they dont want to go into an old building. The bad news is Sunoco just left for the burbs which opened up a big vacancy and soon FMC will move to the new tower which creates another big hole.

If I'm not mistaken, most of the Sunoco space in BNY has already been back-filled. FMC Tower will also leave a large gap, but BNY is an old, outdated office building at this point. Any large corporation is going to want newer digs, and likely new construction. I wouldn't be surprised to see the space in BNY left by FMC filled in with smaller tech and coworking companies.

[Outta here]

Originally Posted by summersm343

Here are the ACTUAL numbers. Philadelphia ranks #15 for 2015, and ranked at #8 for 2014, which is why there really is a lot under construction:
http://construction.com/about-us/press/Commercial-and-Multifamily-Construction-Starts-in-2015.asp

Just like everything else , I guess it all depends on who's list you read . So , maybe the list compilers at Forbes are pissed at Philly
for some " head up their ass " preposterous reason , or just don't have multiple , reliable sources of information . I did notice in that
list you posted , a 57% decrease in dollars between 2014 and 2015 . THAT is one hell of a drop and when I read about companies
like Sunoco moving out to parts unknown , I see the wave length on the oscilloscope moving from plus to minus ...... shit happens .

[Knight Hospitaller]

Originally Posted by summersm343

No they're not. I think you misread that. It's their Corpus Christi offices that are moving to Dallas, not their PA headquarters.



http://www.bizjournals.com/philadelphia/...ut-jobs-before-relocating-office-to.html

This is what I remember: http://articles.philly.com/2016-01-19/bu...nsfer-partners-ellis-preserve-east-texas. Not much going to be left here for all of the "commitment" to Philly.

[Knight Hospitaller]

Originally Posted by summersm343

If I'm not mistaken, most of the Sunoco space in BNY has already been back-filled. FMC Tower will also leave a large gap, but BNY is an old, outdated office building at this point. Any large corporation is going to want newer digs, and likely new construction. I wouldn't be surprised to see the space in BNY left by FMC filled in with smaller tech and coworking companies.

My first job out of law school was in the then Mellon Bank Center. If it's outdated, I'm not sure what that says about me.

[iheartphilly]

Originally Posted by Outta here

Just like everything else , I guess it all depends on who's list you read . So , maybe the list compilers at Forbes are pissed at Philly
for some " head up their ass " preposterous reason , or just don't have multiple , reliable sources of information . I did notice in that
list you posted , a 57% decrease in dollars between 2014 and 2015 . THAT is one hell of a drop and when I read about companies
like Sunoco moving out to parts unknown , I see the wave length on the oscilloscope moving from plus to minus ...... shit happens .

I would give more weight to the numbers provided by Dodge Data and Analytics than Forbes. Dodge is actually doing the analysis in the North American construction industry and Forbes is reporting based off of who knows what (mis)information. And, Forbes isn't known for reporting this type of information. They should talk more about finances and economics if you know what I mean.

[br323206]

Originally Posted by iheartphilly

I would give more weight to the numbers provided by Dodge Data and Analytics than Forbes. Dodge is actually doing the analysis in the North American construction industry and Forbes is reporting based off of who knows what (mis)information. And, Forbes isn't known for reporting this type of information. They should talk more about finances and economics if you know what I mean.

It looks like Forbes included ALL construction while the link that Summers provided included only commercial and multi-family. If you look at Lake Charles, $8.1 billion of their $8.4 billion comes from one massive industrial complex.

[summersm343]

Originally Posted by Knight Hospitaller

My first job out of law school was in the then Mellon Bank Center. If it's outdated, I'm not sure what that says about me.

Not outdated in the sense that it ins't nice... it's out dated in the sense of what employers are looking for now-a-days. Fast growth companies like tech and biopharm are looking for more modern work spaces with open floor plans, etc. BNY Mellon would perfectly fit a finance company or law firm, or maybe a smaller tech company that can get a few floors and completely open up the entire floors.

Looks like there is 230,542 sq ft of available space currently in BNY Mellon, but it's split up into a few different sections of the building.

When FMC vacates to their new tower in June, that will open up 196,274 sq ft of space.

That will mean that 35% of the building will be vacant then, which is certainly a TON assuming no other companies lease space in the building by then. 65% is low... the building should definitely be around 85-90% to be even considered healthy.

http://1735-market.com/1735%20Market/availabilities.html

I wouldn't be surprised to see somebody else buy BNY Mellon, give it a little bit of a facelift, and lease up some of this office space.