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Posted Oct 1, 2019, 2:30 PM
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Join Date: Dec 2015
Location: South Philly
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Goldenberg proposes $150M mixed-use project on South Broad
Quote:
Goldenberg Group is proposing a $150 million, mixed-use project on a former Philadelphia health center site at Broad and Lombard streets, bringing yet another development to South Broad and underscoring its appeal to developers.
Just in the last couple of years, South Broad Street has drawn more than $600 million in projects as the corridor continues a resurgence started two decades ago. Some of those developments are under construction such as Arthaus, have been completed such as Lincoln Square, the Atlantic and Cambria or in the early stages of planning such as Dranoff Properties proposed $100 million, 28-story residential building at Broad and Pine streets and Tower Investments mixed-use development at Broad and Washington streets.
The project Goldenberg is planning would be eventually cover a block and be built in two phases. The first phase will entail the adaptive reuse of the now vacant three-story, 55,800-square-foot health center with retail and entertainment tenants. The developer wants to attract “dynamic users” to activate that part of South Broad to make it more of a 24-hour destination and “pull some of Center City’s energy south,” said Seth Shapiro, chief operating officer at Goldenberg.
The first phase also calls for the development of a residential tower on an adjacent surface lot. The project would total 300,000 square feet and the number of units hasn’t been determined, Shapiro said, noting that the plans are in a preliminary concept phase. Goldenberg will partner with the University of the Arts on this initial phase.
Goldenberg has retained Skidmore Owings & Merrill, an international architectural firm that has completed such noted projects as 35 Hudson Yards and Time Warner Center in New York and designed the master plan for 30th Street Station in Philadelphia, to spearhead its design.
Goldenberg’s plans stem from a process that started in July 2017 when the city decided to put the health center property up for sale and issued a request for qualifications from interested parties. The site consists of two parcels totaling nearly 40,000 square feet. One property is at 500-508 S. Broad St. and totals 25,620 square feet. The other site is at 508-510 S. Broad St. and totals 13,980 square feet. It is zoned CMX-4.
The city received five responses from Goldenberg, Dranoff Properties, Scannipieco Development Corp., LCOR Inc. and Linden Lane Capital Partners. Goldenberg, Dranoff and LCOR were shortlisted with the city ultimately selecting a team consisting of: Goldenberg, a Blue Bell development firm that has completed retail and multifamily projects in the suburbs and Philadelphia; Harvey and Robert Spear, which operate E-Z Park and own adjacent surface parking lots; and Badger Group, which is also a Blue Bell-based real estate company.
In making its selection, the city considered several factors including concept, experience, acquisition price, ability to finance as well as involving minority equity partners such as Badger Group, said Tom Dalfo, senior vice president at Philadelphia Industrial Development Corp. Social impact and a commitment to integrate small businesses owned by minorities, women as well as partnering with arts organizations also played a role in the selection process. Under the Goldenberg plan, at least 10 percent of the retail space will be leased to minority and women-owned companies.
Goldenberg will pay $16.1 million to buy the combined parcels in a transaction that is expected to close next year.
Philadelphia operated since the 1950s a health center that straddles the two combined properties. The city decided when evaluating its real estate, that the needs of the health center were growing but in different parts of the city, said Dominique Casimir, deputy commissioner with the Philadelphia Department of Public Property. As a result, Philadelphia decided to put the property up for sale and relocated the health center services to 1101 Market St. and the Constitution Health Plaza at 1930 S. Broad St.
Goldenberg was attracted to the site because of its location at the confluence of the Avenue of the Arts and South Street and the “tremendous opportunity” that it offers, Shapiro said. The second phase of the project will involve a project that will have additional residential development and hospitality uses, retail, restaurants, entertainment and public spaces.
The 10-year tax abatement, which city council is deliberating curtailing, is instrumental to getting the proposed project at its scope, size and timing built, Shapiro said.
“All development will slow if the tax abatement is reduced or changed,” he said, adding it will make the underwriting of this project challenging. “It will be a struggle.”
That said, Goldenberg is committed to acquiring the site. Goldenberg expects to close on the property in 17 months and complete the first phase by 2023.
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https://www.bizjournals.com/philadelphia...ct-on.html?iana=hpmvp_phil_news_headline
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