PHILADELPHIA | Highrise Development Thread IX

[eixample]

Proposal by Kimmel Center to completely renovate the Merriam Theater on South Broad Street and (maybe) add a 32 story tower above

http://www.philly.com/philly/entertainme...-merriam-theater-20170812.html?mobi=true

[Philly-Drew]

Originally Posted by eixample

Proposal by Kimmel Center to completely renovate the Merriam Theater on South Broad Street and (maybe) add a 32 story tower above

http://www.philly.com/philly/entertainme...-merriam-theater-20170812.html?mobi=true

OMG. Looking at the picture (at the bottom of the article) of what the Merriam looked like in the 1970's it is just.... ATROCIOUS!

[summersm343]

Kimmel Center pursues radical plan to remake the Merriam Theater

The Kimmel Center is laying the groundwork for an ambitious reworking of the Merriam Theater that would demolish part of the building and replace it with a tower that could be up to 32 stories high.

Plans are still early, and could move in a different direction. But ideally, the performing arts center, which purchased the century-old theater from the University of the Arts in November, would partner with a real estate developer to raze the seven-story building fronting South Broad Street that currently houses the theater’s lobby and offices above.

In its place would go a tower whose base would contain roomier lobby spaces and amenities leading directly into the theater at multiple levels. Above the theater lobby levels, the new tower, likely residential, would continue to rise, with larger floors possible by cantilevering over the Merriam Theater itself.

The hall — with its richly colored murals and decorative plaster work — would undergo a restoration, backstage rigging and other equipment would be updated, and new seating installed. The project would “take the bones of a handsome theater of its period and revitalize it for the next hundred years,” said Richard Maimon, partner at the architecture firm KieranTimberlake, which created the scheme.

“Right now we have a number of artists that just won’t perform there because of the condition of the theater,” so a renovation would provide “the chance for us to increase the interest,” says Kimmel Center president Anne Ewers.

One attractive aspect of the plan is the prospect that the Kimmel might not have to seek big money from a donor community already being solicited for major campaigns for the Philadelphia Orchestra, Philadelphia Museum of Art, and other institutions. The Kimmel sees potential revenue sources in selling air rights for a tower over the Merriam, as well as rights to naming the tower and renaming the theater.

How much revenue?

“It all depends on negotiations with the developers,” says Ewers, adding that state money might also be sought. “A lot will depend on what we figure out in terms of what we’re going to do and what the price tag is going to be. But certainly there are some great revenue opportunities in the naming and air rights and the relationship we work out with the developer.”

There is much to do before such a plan could proceed. Aside from seeking proposals from developers, set to begin this week, the Kimmel has retained a series of consultants to solicit opinions from various constituents — neighbors, the arts community, and the general public. A public meeting is being planned for late September to air thoughts and concerns, and the Kimmel hopes developers might bring other proposals, such as mixed-use ideas for the building connecting the theater to the street.

“We’re coming to the nexus of a conversation between the development community and the public to come to a place where we can by the end of this year have more definitive plans to move forward,” said Ross S. Richards, Kimmel senior vice president of facilities and operations. “The venue needs a lot of work, and this is our opportunity to get it right for the long-term.”

Read more here:
http://www.philly.com/philly/entertainme...remake-the-merriam-theater-20170812.html

[mcgrath618]

What happened to that project by that NYC developer at North Philadelphia Station? Is it going through?

[Urbanthusiat]

Originally Posted by mcgrath618

What happened to that project by that NYC developer at North Philadelphia Station? Is it going through?

Still in the early planning stages I imagine - seeking financing and potential partners/tenants, getting zoning approval, exploring tax incentives, finalizing the design, etc. The press release was mostly concept to draw interest and public support, I think. I wouldn't expect to hear more about that until next year.

[1487]

Originally Posted by mcgrath618

What happened to that project by that NYC developer at North Philadelphia Station? Is it going through?

they were applying for state grant- as usual the budget isn't done on time so until that is finalized I wouldn't expect to hear much else on it. I think they wanted $20 or $30M

[summersm343]

Why this Center City startup ignored advice & launched in Philadelphia

When Amino's founders told their attorney and accountant the startup planned to launch in Center City, both professionals responded with the same answer.

“Each separately said, ‘Are you sure you want to do this in Philadelphia?’” said David Bookspan, executive chairman and co-founder at Amino, which uses blockchain, payments and digital ad technologies to bring transparency to the digital ad transactions.

But Amino's founders were adamant. Bookspan, also known for launching DreamIt Ventures and tech firm Monetate, and fellow founders Will Luttrell and Chris Chapman said Amino can become something big for the city — both a powerful magnet to draw talent and a tent pole in the tech ecosystem.

“We want to build something fantastic in Philadelphia, to be a linchpin for other companies so that this becomes contagious," Bookspan said.

“I’ve lived in New York City and San Francisco and one of the things that blew me away when compared to other cities is there’s so much passion from so many of the people I meet to make Philly better,” Chapman said. “It’s kind of contagious. I haven’t seen that anywhere else.”

The experienced leadership team drew the attention of major investors in the Philadelphia region. While the founders initially decided to self-fund, once they realized the demand for their type of product in the market, they decided to take some investments to speed up production. In addition to Josh Kopelman of First Round Capital, Amino is backed by legendary marketing entrepreneur and investor Richard Vague.

“You couldn’t think of a space more ripe for a great company,” Vague said at Amino’s launch party at WeWork last month, referring to the fraud-ridden world of online advertising. “The opportunity for you Amino folks is extraordinary."

The fact Vague is behind Amino is enough proof for Mayor Jim Kenney, who also spoke at the launch.

“This company is going places, because I know Richard doesn’t invest in dogs. He invests in companies that really have a chance to take off,” Kenney said. “The fact you’re taking off here in Philadelphia as opposed to New York City is wonderful for us.”

Amino’s success could also be wonderful for the city’s investment fund, StartupPHL. Interest in backing Amino was so high that the founders had to dial back the stakes investors were seeking to make room for all, but arranged for StartupPHL to get a piece.

“That goes back to our commitment to the city,” Bookspan said. “We’re hoping and expecting that StartupPHL will do very well with the investment, which presumably will give them more capacity to help other startups.”

The founders' commitment to the region doesn't stop with its launch; Amino is intent on leveraging potential talent from around the Mid-Atlantic as well. The startup could be a potential landing place for an employee at Comcast, which is also now venturing into blockchain technology for TV ad buying, offered Luttrell. And vice-versa, an Amino staffer who craves more stability over the startup culture knows Comcast's headquarters is three blocks away, or has the option of launching their own venture.

If Amino can draw top talent like Chapman into the city, then it can work as a “reverse brain drain," attracting workers and also keeping students here to stop the brain drain before it starts, he argued.

Looking at Amino leaders' track record, its current staff is just the beginning. At Monetate, Bookspan helped build a company that employed more than 200 at peak, Luttrell amassed a staff of 400 at Integral and Chapman had 200 at Sailthru.

“Seated at this table are nearly 1,000 jobs. We think we can replicate at least that level of success right here in the city limits,” Luttrell said.

Vague thinks it’s possible, and necessary.

“Philadelphia is lucky to have these guys. This market, I think, is a very good startup tech market, but it’s not a great one. We need more great companies to bring hardcore technical skills and have those skills cascade throughout the tech community," Vague said at the launch. "We wish doubly, and triply hard for your success because of a lot of the ancillary benefits we know will come."

https://www.bizjournals.com/philadelphia...ain-ad-philly-tech-startup-bookspan.html

[Boku]

Liberty Property adds to holdings near Comcast buildings

https://www.bizjournals.com/philadelphia...phia+%28Philadelphia+Business+Journal%29

Liberty Property Trust has expanded its Center City holdings and picked up two more properties that sit in the shadow of the looming Comcast Technology Center that is under construction at 18th and Arch streets in Philadelphia.

The Malvern real estate investment trust closed last month on 1926-34 Arch St., a four-story, 52,104-square-foot office building, and 1936 Arch, which is an adjacent surface parking lot that totals 6,000 square feet. The properties are across the street from an assemblage of nearly a block bound by Arch, 19th, Cherry and 20th streets that Liberty has pieced together over the last four years.

The latest buy is strategic and geared toward future development presumably for Comcast.

“We have accumulated additional properties and this gives us some additional flexibility and optionality for when we decide to develop west of 1800 Arch St.,” said John Gattuso, senior vice president and regional director at Liberty Property.

The building and lot were sold for $15 million, according Philadelphia property records. The office building at 1926-34 Arch is fully occupied and Liberty will continue to operate it as such, Gattuso said.

The real estate company continues to seek out acquisitions around that part of Center City where Comcast makes its headquarters and occupies space in various office buildings in that neighborhood including Two and Three Logan Square. The Comcast Technology Center is expected to be completed by early 2018. Liberty Property (NYSE: LPT) is developing the new tower, which will stand 60 stories and have a total of 1.7 million square feet of space. Of that, 1.33 million square feet will be office space and Comcast has committed to all of it.

[City Wide]

Originally Posted by 1487

they were applying for state grant- as usual the budget isn't done on time so until that is finalized I wouldn't expect to hear much else on it. I think they wanted $20 or $30M

Only $20M or $30M? In other words this project this project is in the dream on camp. But I guess it doesn't hurt to ask. I wonder if I can sign up for a grant, my back yard could use some work.

[summersm343]

Originally Posted by Boku

Liberty Property adds to holdings near Comcast buildings

https://www.bizjournals.com/philadelphia...phia+%28Philadelphia+Business+Journal%29

Nice nice!

[allovertown]

Originally Posted by City Wide

Only $20M or $30M? In other words this project this project is in the dream on camp. But I guess it doesn't hurt to ask. I wonder if I can sign up for a grant, my back yard could use some work.

This is a transformative project in an area that really needs this type of investment. I doubt they get all they ask for but I would bet a lot they secure much more than a luxury hotel project like SLS. I mean this is basically a textbook example of what those grants are for.

[McBane]

I don't know how much more west the CBD can go before skipping over the river and going to Univ City. I'd like to see more development north. Race Street between the Parkway and Broad is a pretty sorry stretch of parking lots, building backsides (Sheraton Hotel), and walls (Friends School). It would be nice to see more development along those blocks of Race. That's an area without many neighbors and could certainly support tall buildings without much opposition.

[Knight Hospitaller]

^ Besides the "twenties" blocks along Market, there's so much untapped potential just to the north of PAFA/PCC. Given Market East (Jeff) Station and the 8th St. subway hub, development east seems like a no brainer as well (however, my brain has not made me a real estate tycoon, so take it for what it's worth). The point is, we've come nowhere near to exhausting development opportunities in non-residential areas in CC.

[jjv007]

Good points ^^ Hopefully we see development finally starting to spread north at a higher level.

[Nova08]

Originally Posted by McBane

I don't know how much more west the CBD can go before skipping over the river and going to Univ City. I'd like to see more development north. Race Street between the Parkway and Broad is a pretty sorry stretch of parking lots, building backsides (Sheraton Hotel), and walls (Friends School). It would be nice to see more development along those blocks of Race. That's an area without many neighbors and could certainly support tall buildings without much opposition.

The unfortunate reality is that area is located near a hospital/medical college and the convention center. Both of which require parking.

There is still the development proposed behind the Basilica and the ongoing the Franklin Plaza work.

[Boku]

Developer Goldenberg eyeing S. Broad St. health building to solidify control of block

http://www.philly.com/philly/business/re...th-building-on-south-broad-20170816.html

[summersm343]

Originally Posted by Boku

Developer Goldenberg eyeing S. Broad St. health building to solidify control of block

http://www.philly.com/philly/business/re...th-building-on-south-broad-20170816.html

Beautiful! This could be a huge, game changing development for this block.

[summersm343]

North Broad hotel aimed at the 'traveling millennial' nears opening

The final touches are being made for the upcoming opening of a Center City hotel aimed at the "traveling millennial," a property that still has nearly 4,000 square feet of leasable retail space at street level.

The Aloft Philadelphia Downtown, converted from the historic Liberty Title and Trust building at Broad and Arch streets, will open on Aug. 31, adding 179 new, loft-inspired hotel rooms to the Philadelphia market.

The HRI Lodging-managed hotel will have a bar and 1,200 square feet of function and event spaces.

The Center City hotel is among 160 Aloft properties in the United States and only the second in Pennsylvania after the Aloft Philadelphia Airport opened in 2008.

The hotel has a total of 3,984 square feet of street-level leasable retail space, said Evans, and the right mix of tenants will ideally help the property attract its target audience.

There are four total pads for leasable retail space in the followingsizes: 863 square feet, 627 square feet, 912 square feet and 1,582 square feet, according to information given to the Philadelphia Business Journal.

The spaces 627 square feet and 912 square feet in size can be combined for a larger retail space.

Evans said an operator for a sidewalk café could be a potential use. If a food and beverage operator takes over a space and adds outdoor seating, it would complement the hotel's own outdoor area between the original Liberty Title and Trust building and the Pennsylvania Convention Center.

Read more here:
https://www.bizjournals.com/philadelphia...el-millennial-marriott-starwood-alo.html

[summersm343]

How 10 Penn Center’s owners shifted strategy to up occupancy

Morgan Lewis Bockius has renewed its lease at 10 Penn Center, signing on to stay in 97,000 square feet of space it moved into 10 years years ago.

The law firm, which has its headquarters a block away at 1701 Market St., maintains its data support and other administrative operations at 10 Penn Center. The lease is for in excess of seven years with some potential room for growth. A spokeswoman for Morgan Lewis declined to comment.

For a building that has had a series of ups and downs over the years as big tenants defected to other office towers, the renewal is a relief. “It’s a great deal for us,” said Dan Busch of Greenville Partners of West Chester.

Greenville joined Sterling American Property Inc. of New York to buy the 27-story, 668,000-square-foot building at 1801 Market St. at the end of 2006.

In the decade the partnership has owned the building, Busch learned a lesson that has so far helped alter the fortunes of 10 Penn and put it on more stable footing. Busch changed his initial strategy when it came to leasing up the building – a mantra to focus on landing large tenants was abandoned.

Ten Penn has a history of big tenants departing.

When Busch and Sterling bought the property, it was a half empty building that eventually emptied out even more. It was 48 percent occupied at the end of 2006 as a result of Sunoco Inc. vacating 325,000 square feet in 2004 when the company moved out of the building to new offices at the Mellon Bank Center at 1735 Market St. (Sunoco has since moved to Ellis Preserve in Newtown Square, Pa., and left a big hole in 1735 Market that is being backfilled.)

In the first two years under the Busch-Sterling ownership, tenants signed leases on space in the building and it was eventually more than 80 percent occupied and pushing 90 percent when another tenant bolted. Janney Montgomery Scott, which occupied 154,000 square feet, or 23 percent of the building, left the building in 2011.

“We took a giant leap forward and two steps back,” Busch said.

While losing Janney was a gut punch, it shined a bright light on the obvious. Ten Penn’s space was dated and obsolete. Tenants were yearning for something new and the idea of renovating while staying put wasn't appealing, especially when, at that time, there were multiple options in trophy and Class A towers. In the last three years, $5 million has been spent upgrading the lobby, elevator lobbies, bathrooms and other common areas.

But 10 Penn took another hit in 2016 when CDI Corp. bolted for 1717 Arch St., emptying out of 49,000 square feet, which was roughly 7 percent of the building. The company moved out a year ago this month.

The new strategy has helped shore up the building's vacancy.

Ten Penn has been backfilling space with tenants that occupy a floor, which totals 25,000 square feet, or are a little smaller, doing about 100,000 square feet in new deals a year. Some of the new tenants in the building include Frank Recruitment Group, Navicor, Tucker Law Group and Manpower Group. The building is now back up to 80 percent full with 160,000 square feet vacant. Busch is optimistic that more space will be leased by the end of the year.

https://www.bizjournals.com/philadelphia...ter-s-owners-shifted-strategy-to-up.html

[Knight Hospitaller]

^ Was it 10 or 11 Penn that was going to have work done on the lobby to provide more retail/restaurant amenities? Did anything ever come of that?