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Originally Posted by 3rd&Brown
Just randomly checked Toll's website (which I do from time to time because they usually have site plan and/or building plan schematics where you can see exactly how many units are still available). I'm not that big of a fan of Toll but use them as a barometer for development since the information is so granular and they're new to urban markets.
Anyways, as we all know, 2400 South sold out eons ago (and no longer appears on its website). IMO, it was a resounding success from a sales standpoint.
Naval Square too is completely sold out.
Now New Market, the last Center City property currently under development has only 2 units left...both $600K 1 bedrooms on the 1st floor (understandable why these are the last to sell).
Anyway, my point is...Toll really dropped the ball by not having anything in Philadelphia in the pipe line. Any time you're running a business like that, one strategy to measure your business is to comp your sales year over year in each market. The fact that Toll went from having hundreds of transactions a year in Philadelphia (between these 3 developments) for the past 2-3 years to ZERO is a huge misstep for the business. I have to believe that the regional manager for Philadelphia is getting his ass handed to them.
It feels to me like they're really reluctant to venture outside of traditional Center City (to where the develop-able sites are) and as a result aren't able to get anything going, really. The Society Hill Playhouse doesn't count in my mind, as it isn't even going to be a for-sale project anymore.
They have always been (IMO) the best contender to take on one of those super blocks between Old City and Northern Liberties. Think the Mothers Work property. Why they have not, yet, is really perplexing to me. There aren't a lot of players who have the ability and cash to build a project over time...on such a site they could do a mix of townhomes, mid rise, and high rise, appealing to all sorts of buyers, and mitigate their risks at the same time (by having an assortment of phased product).
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They don't even have to venture outside of "traditional" Center City, as there are still develop-able sites in Center City.
It seems to me that:
A. They are afraid to venture outside of traditional Center City or close proximity to it.
B. They are afraid to go for a highrise development in Center City.