PHILADELPHIA | Highrise Development Thread IX

[summersm343]

Five Below chooses Lits Building for new Center City headquarters

Five Below Inc. is moving its headquarters across Center City to the former Lit Bros. building at 701 Market St. and taking over some of the one-time department store's retail space, according to two people with knowledge of the company's plans.

Five Below plans to lease 180,000 square feet of office space and 15,000 square feet of retail space in what is now known as the Lits Building, according to one of the two people.

The discount teen-oriented store, which is receiving $1.36 million in state financial support in connection with the headquarters move, has committed to creating 154 new high-wage, full-time jobs over three years and to retaining 211 existing positions, the person said.

Five Below chief executive Joel Anderson, company co-founder Tom Vellios, and Mayor Kenney are scheduled to announce the move Tuesday atop a parking structure near the 880,000-square-foot Lits Building, according to a media invitation.

The move comes during a period of rapid expansion for the chain, which sells items priced between $1 and $5. The company now operates more than 500 stores in 31 states, almost twice as many locations as it did around the time of its July 2012 initial public offering.

In 2012, Five Below moved into its current home at the 1818 Market St. office tower, where it now occupies 60,000 square feet. Anderson said in a conference call with analysts in August that a new Center City headquarters had been selected, but he did not identify the site.

"We will be moving in 2018 to a larger space that can better accommodate our needs, as well as our expected home-office head growth, for a number of years to come," Anderson said. “It also affords us an opportunity to have things like a mock lab store on-site for our merchants. This is something we do not have today that will make us even more nimble."

Five Below spokeswoman Jessica Liddell did not respond to phone messages seeking additional details.

John Connors, managing partner of the Lits Building's owner, Brickstone Realty, also did not respond to a phone message.

http://www.philly.com/philly/business/re...-Bros-building-as-new-anchor-tenant.html

[PhilliesPhan]

I couldn't get a picture since my phone is broken, but there is currently soil testing occurring at the grass lot at 12th and Cecil B. Moore, across from The View at Montgomery. I remember hearing that Goldenburg Group wants to develop something similar to The View, so this is good news!

[1487]

Originally Posted by PhilliesPhan

I couldn't get a picture since my phone is broken, but there is currently soil testing occurring at the grass lot at 12th and Cecil B. Moore, across from The View at Montgomery. I remember hearing that Goldenburg Group wants to develop something similar to The View, so this is good news!

yes, even when the first project was announced they indicated it was a multiphase project and then recently there was another story about the second tower.

[summersm343]

Originally Posted by PhilliesPhan

I couldn't get a picture since my phone is broken, but there is currently soil testing occurring at the grass lot at 12th and Cecil B. Moore, across from The View at Montgomery. I remember hearing that Goldenburg Group wants to develop something similar to The View, so this is good news!

Yes... next buildings is 15 or 16 floors. Different design. Should hear more soon.

[1487]

Another company appears to have moved to Philly. Can't tell since it's locked though...

http://www.bizjournals.com/philadelphia/...l-tax-group-cpa-accounting-1500-jfk.html

[Baconboy007]

Originally Posted by 1487

Another company appears to have moved to Philly. Can't tell since it's locked though...

http://www.bizjournals.com/philadelphia/...l-tax-group-cpa-accounting-1500-jfk.html

I google searched the image and came up with this company:

http://dhglobaltax.com/

[summersm343]

Long-awaited Pa. grant for Gallery could mean progress for major revamp

Progress on remaking the Gallery at Market East into an outlet-shopping mecca could be about to hit its stride.

Gov. Wolf's office is expected to award a $10 million redevelopment grant for the project Thursday, according to a state official who asked not to be identified ahead of the formal announcement.

Pennsylvania Real Estate Investment Trust of Philadelphia, which owns the property in a venture with Santa Monica-based mall operator Macerich, had been awaiting word on its request for up to $30 million in state aid for the $325 million-plus project.

PREIT chief executive Joseph Coradino has said the Redevelopment Assistance Capital Program (RACP) funds are needed to fully realize the transformation of the Center City mall into what will be called Fashion Outlets of Philadelphia.

Plans call for filling the 1.5 million square feet with outlet shops of upscale brands such as Gucci and Prada, along with typical mall tenants such as H&M. The developers also have said restaurants will play a big role in the project.

When City Council approved the Gallery's redevelopment and $55 million in aid for the project in June 2015, construction was expected to begin the following month, with completion anticipated in summer 2017.

But delays kept work from starting until the beginning of this year, when the Gallery's east end closed for demolition efforts. The project is "on track for a planned 2018 opening," Coradino said in a July earnings call with analysts, although a Macerich executive said in February that completion could come as late as early 2019.

Conshohocken-based investment firm Boenning & Scattergood said in a June research note that no announcements about tenants at the revamped Gallery were likely until state officials revealed whether PREIT and Macerich would receive the $30 million in RACP funds.

Coradino said in February that the result "won't be as dramatic" as originally planned without the state aid.

http://www.philly.com/philly/business/re...ery-fashion-outlets-of-philadelphia.html

[Nightman]

Originally Posted by summersm343

Long-awaited Pa. grant for Gallery could mean progress for major revamp



http://www.philly.com/philly/business/re...ery-fashion-outlets-of-philadelphia.html

I am assuming a similar grant should be coming to the SLS????? No mention of that in the article, good reporting.

[jsbrook]

Originally Posted by summersm343

Long-awaited Pa. grant for Gallery could mean progress for major revamp



http://www.philly.com/philly/business/re...ery-fashion-outlets-of-philadelphia.html

I wish Health Partners Plan would vacate and move to Lits with Five Below or the Aramark Tower when Aramark leaves. Anyone know how many people they employ at their headquarters?

https://www.healthpartnersplans.com/about-us/contact-us

There are structural challenges to the renovation, but supposedly their presence limits the exterior renovation as well as far as opening the building to the street. At least I thought I read something on that some time ago.

[summersm343]

Zoning Board hears arguments over Jewelers' Row permits, continues hearing to next week

http://planphilly.com/articles/2016/09/2...w-permits-continues-hearing-to-next-week

[New2Fishtown]

Originally Posted by jsbrook

I wish Health Partners Plan would vacate and move to Lits with Five Below or the Aramark Tower when Aramark leaves. Anyone know how many people they employ at their headquarters?

https://www.healthpartnersplans.com/about-us/contact-us

There are structural challenges to the renovation, but supposedly their presence limits the exterior renovation as well as far as opening the building to the street. At least I thought I read something on that some time ago.

Governor's office is pretty cryptic about the nature of the improvements: https://www.governor.pa.gov/governor-wol...te-into-fashion-outlets-of-philadelphia/

Perhaps this $10M allows them to overcome some of these structural issues and create a better and more transparent facade?

[PhillySteaks]

Originally Posted by Nightman

I am assuming a similar grant should be coming to the SLS????? No mention of that in the article, good reporting.

SLS = Mandeville Place

It's not happening. Not sure how many times I have to say it. That state grant is like 2-3% of the capital stack. It has no where near the same impact that the Gallery grant has. There is no equity to get the project done. Can't get investors on board....at least at this point in time.

On another note Two Liberty is under contract. $200M purchase price / 7.0% Going in Yield

[Human Scale]

Originally Posted by PhillySteaks

SLS = Mandeville Place

It's not happening. Not sure how many times I have to say it. That state grant is like 2-3% of the capital stack. It has no where near the same impact that the Gallery grant has. There is no equity to get the project done. Can't get investors on board....at least at this point in time.

On another note Two Liberty is under contract. $200M purchase price / 7.0% Going in Yield

Couldn't agree more. As much as I want it, doesn't matter. I have felt since announcement that all parties involved were hoping it would happen too, but never really had any assurances, even to themselves.

[PHL10]

Originally Posted by PhillySteaks

SLS = Mandeville Place

It's not happening. Not sure how many times I have to say it. That state grant is like 2-3% of the capital stack. It has no where near the same impact that the Gallery grant has. There is no equity to get the project done. Can't get investors on board....at least at this point in time.

On another note Two Liberty is under contract. $200M purchase price / 7.0% Going in Yield

If that's the case, they should fill in the hole left by the demo of the historic buildings and turn it into a surface parking lot. That would look fantastic on S. Broad.

[reparcsyks]

Originally Posted by PhillySteaks

SLS = Mandeville Place

It's not happening. Not sure how many times I have to say it. That state grant is like 2-3% of the capital stack. It has no where near the same impact that the Gallery grant has. There is no equity to get the project done. Can't get investors on board....at least at this point in time.

On another note Two Liberty is under contract. $200M purchase price / 7.0% Going in Yield

I realize things happen, but shouldn't the demolition and placing of concrete barriers happen AFTER financing is in place? How many more 8th & Markets do we need in this town??

[McBane]

Here's my issue and this applies to all properties that are upzoned/receive variances for a specific development. When the city grants these, the value of that property instantly shoots up and the developer is primed to make a lot of money (either through the development or by selling the now upzoned property). After granting this exceptions to the developer, the property should be immediately reassessed the new value and the city should be collecting more in taxes. It shouldn't be that only the developer benefits.

Because if SLS doesn't happen, Dranoff can still sell that property and make a bundle. It's shovel ready and zoned for a major development, making it extremely valuable. The city deserves to benefit as well.

[Boku]

State awards $21.3 million for Philly projects, including Reading Viaduct

http://www.philly.com/philly/business/St...-not-for-SLS-condo-hotel-on-S-Broad.html

As the article says, no decision has been made for SLS yet.

Interestingly, the Chinatown tower received $1.3 million of $3.99 million requested.

[summersm343]

State awards $21.3 million for Philly projects, including Reading Viaduct

Pennsylvania officials have awarded $21.3 million in redevelopment funds requested last year for Philadelphia projects, including $3.5 million for the Reading Viaduct rail park project planned along abandoned tracks north of Center City, according to a list posted Friday to the website of the state budget office.

The list covers projects about which a final decision has been made, with additional projects still under review, Jeffrey Sheridan, a spokesman for Gov. Wolf, said in an email.

Sheridan said no decision has yet been made on developer Carl Dranoff's plan for a 47-story hotel-and-condo tower under the SLS Lux brand.

Statewide, $102.5 million has been awarded out of $1.6 billion in requests, according to the list.

http://www.philly.com/philly/business/St...-not-for-SLS-condo-hotel-on-S-Broad.html

[jsbrook]

Originally Posted by New2Fishtown

Governor's office is pretty cryptic about the nature of the improvements: https://www.governor.pa.gov/governor-wol...te-into-fashion-outlets-of-philadelphia/

Perhaps this $10M allows them to overcome some of these structural issues and create a better and more transparent facade?

Hope so. The various articles do indicate the funding would be used -- in part -- for facade work.

[PhillySteaks]

Originally Posted by PHL10

If that's the case, they should fill in the hole left by the demo of the historic buildings and turn it into a surface parking lot. That would look fantastic on S. Broad.

I should rephrase my language. I don't want to say it's "definitely" not happening, because I really don't know. It could still happen - but from my understanding right now it doesn't have the fuel for lift off, that could change at some point I suppose.

As for the demo and hole, CD owns the lot so as long as he has zoning or permits I would believe he can do what he wants. He may of been pitching it as look - it's ready to go today. I don't think a hole is going to be left there, it could be filled in, or another building with a completely different profile could be built (which is what I personally think will happen). CD isn't going to want to give up that property - if the hotel doesn't work, he'll find something that does. It could just take some more time. If I had to make a guess I'd think much of his efforts will be realigned once he's completely out of One Riverside.