New Philadelphia Family Court Building Celebrates Milestone; Old Building Becomes Hotel

By Veronica Grecu, Associate Editor

Philadelphia city officials and representatives of the Tishman Construction Corporation gathered last week to attend a topping-off ceremony for the new Family Court building that is under development at the northwest corner of 15^th and Arch streets. Construction for the $160 million courthouse building started in early 2012 under plans designed by EwingCole, a locally based architecture firm that provides services for various project types including academic, corporate, government, healthcare, science, technology, arts and sports.

According to the Philadelphia Business Journal, the 14-story structure—which is replacing an old parking lot in Center City—is expected to open in spring 2014. At 510,000 square feet, the new facility will be housed under the same roof as the Family Court’s operations, which are currently operating in several facilities near 11^th and Market Streets and in an old building located at 18^th Street and Benjamin Franklin Parkway.

Designed to pursue LEED Silver certification, the new courthouse building will encompass 29 court rooms, judges’ chambers and administrative space. It will also have a three-level underground parking garage with 285 spaces owned and operated by the city’s Parking Authority.

As for the old Family Court building at 18^th and Parkway Streets, the city is planning to redevelop the site into a small-sized hotel with 200 to 300 guest rooms that would increase pedestrian traffic along the Benjamin Franklin Parkway.

In an interview for CBS Philly, Deputy Mayor for Planning and Economic Development and Director of Commerce Alan Greenberger said that five developers have been chosen as finalists for the redevelopment project. The developer is expected to be named by fall 2013, with a tentative ground breaking date set for spring 2014 when the building is vacated.

Rendering of the new Philadelphia Family Court via EwingCole

Realen Properties to Continue with Phase II of Edgewater Apartments

By Veronica Grecu, Associate Editor

Construction is heating up in Center City Philadelphia as real estate developer Realen Properties of Berwyn, PA, and its finance partner Northwest Mutual Life prepare to break ground on Phase II of Edgewater Apartments, an upscale multifamily community that was partially completed in 2006 before the economic downturn.

According to the developer’s website, Edgewater I is a fully occupied 13-story building at 23^rd and Race Street that includes a combination of studios, one-, two-, and three-bedroom units totaling 290 apartments and  675 parking spaces, 75 of which are located in an underground parking garage. Construction at the 562,000-square-foot, $80 million tower started in 2003 under plans designed by locally based BLT Architects.

Edgewater II will replace an existing surface parking lot at the Southwest corner of 23rd and Summer Streets behind Edgewater I, the Philadelphia Business Journal reports, and  it will add 240 rental units to the Logan Square neighborhood’s housing inventory.

Before breaking ground on the proposed 22-story tower, the development team must go through a rezoning process with the Philadelphia Planning Commission that could be finished by summer. Dennis Maloomian, president of Realen Properties, has already discussed the development plan with representatives of the Logan Square Neighborhood Association during a meeting held on April 16.

Rendering courtesy of Realen Properties

Ardmore Township OKs Dranoff Properties’ $56 Million Luxury Project

By Veronica Grecu, Associate Editor

The first phase of a challenging revitalization effort in Ardmore is now closer to fruition as the developer, Dranoff Properties, unveiled the project’s official name: One Ardmore Place.

Originally unveiled in 2008 as the Cricket Lot or the Ardmore Station, the project was downsized from a $180 million, three-phase investment with 335 apartment units and 120,000 square feet of office and retail space. According to the Philadelphia Business Journal, Dranoff Properties was forced to resize the original project because the company failed to secure the federal and SEPTA financial help which included a $25-million TIGER grant from the U.S. Department of Transportation. Reportedly, the $15.5 million received from the state will be reinvested in the revised project while the developer is investing $44 million.

Conveniently located near the Ardmore train station, the $56 million One Ardmore Place will transform the township-owned Cricket Avenue parking lot into 121 high-end rental units with state-of-the-art amenities and a 24/7 concierge, 10,500 square feet of street-level retail space, as well as a public/private ample parking component with either one, two or three decks with more than 200 parking spaces.

As Main Line Media News previously reported, the project is estimated to create 900 construction jobs and 80 permanent retail jobs and generate around $40 million in annual revenue once construction is completed.

Rendering of One Ardmore Place courtesy of Danoff Properties

Fishtown Neighbors Association Approves Wynn Resorts’ $925M Casino Proposal

By Veronica Grecu, Associate Editor

The Fishtown Neighbors Association on April 8 voted in favor of a casino / resort development project that was pitched by representatives of Wynn Resorts Ltd., one of the six casino operators and developers that applied for a gaming license in Philadelphia. The Paradise, NV-based developer wants to put a 60-acre underutilized Delaware riverfront property to a much better and lucrative use: a resort and casino three times larger than Penn’s Landing.

According to PlanPhilly.com, the Wynn Resorts’ proposal includes: a 300-room hotel with an average 900 square feet per room, a 22-acre green park and River Walk, a parking garage with 2,800 spaces and a green roof, several restaurants, a 10,000-square-foot nightclub and a 20,000-square-foot entertainment facility including a high-end spa and a potential ice skating rink. The proposal calls for a separate gaming component that will include a 150,000-square-foot casino with 2,500 slot machines and 100 table games.

If the Pennsylvania Gaming Control Board grants Wynn Resorts’ a gaming license in the city, the $925 million resort and casino tentatively called Wynn Philadelphia will be the largest private project ever constructed in the state. The Philadelphia Real Estate Blog notes that the venture will take two to three years to complete and will create 3,600 construction jobs. Another 3,300 permanent and supplier jobs will be generated once the complex is open.

Rendering of Wynn Philadelphia via PlanPhilly.com

Developer Plans Mixed-Use Complex on Vacant Brownfield in South Kensington

By Veronica Grecu, Associate Editor

A 2.5-acre vacant site in Philadelphia’s South Kensington that once housed the Absco Inc. steel plant could be redeveloped into an energy efficient mixed-use community. The development proposal comes from Canus Corporation, a local company that has already invested over $8 million in cleaning and decontaminating the site located at 2^nd and Thompson Streets.

According to PlanPhilly.com, the developer started working on a redevelopment plan for this site in 2007 but the project had to be put on hold because of the recession. Reportedly, the original plan called Viridian included 160 condos and 16 artist studios. Now Canus is proposing a revised plan with a denser complex designed by BartonPartners that would also feature retail spaces, ground level parking and green areas and plazas accessible to the public.

The proposed 320-unit complex would break down to 2 percent live-work units, 12 percent studios of roughly 450 square feet each, 63 percent one-bedroom units and 23 percent two-bedroom units. According to PlanPhilly.com, the zoning committee suggested an increase in square footage per unit, which would lead to fewer residential units but would address the neighborhood’s main concern—that the area not become overpopulated.

If approved by the South Kensington Community Partners planning and zoning committee, Phase I of the Soko Lofts project could start in late fall with an estimated completion time of 12 months. During Phase I Canus will break ground on a four-story, L-shaped building along 2^nd Street and a similar building at the corner of 2^nd and Thompson Streets. A third building of up to seven stories will follow on American Street during Phase II. This structure will include a large lobby, street level commercial space and 50 covered parking spaces.

Rendering of Soko Lofts courtesy of PlanPhilly.com

Camden City to Get First Supermarket in 30 Years

By Veronica Grecu, Associate Editor

A joint venture between the Ravitz Family, which owns Supermarkets of Cherry Hill, Inc., and the Goldenberg Group, headquartered in Blue Bell, PA, is set to develop the first full-service supermarket in Camden in more than three decades. The newly announced investment—which will also feature the first-ever ShopRite in the area, as well as several restaurants and smaller retail businesses—will occupy a city-owned, 20-acre vacant site at the corner of South 17^th Street and Admiral Wilson Boulevard.

Scheduled to open in 2015, the 150,000-square-foot Admiral Wilson Plaza will be managed by Jason, Shawn and Brett Ravitz, the fourth generation of the Ravitz family which has been operating five other ShopRite stores in the New Jersey area for over 40 years.

“My brothers and I are proud to be bringing a ShopRite store to Camden. We recognize that there is a great need for a full-service supermarket in the city and have been trying for years to find the best location to serve the community,” said Jason Ravitz, vice president, retail operations for Supermarkets of Cherry Hill, Inc.

The $40 million Admiral Wilson Plaza is expected to create around 400 construction jobs and 320 part-time and permanent jobs. Though the project is still in the early stages of land acquisition and permitting, the developers are confident that the new supermarket will offset the lack of shopping venues in the area and improve the quality of life for residents.

According to the Philadelphia Inquirer, Camden City has only a few mid-sized grocery stores serving a population of 77,000 people.

$16 M Carrier Hotel Announced in Wilmington; Investment Group Buys $36 M Industrial Portfolio along I-95 Corridor

By Veronica Grecu, Associate Editor

Private cloud and infrastructure service solution provider IPR International of Wayne, PA, has announced plans to transform its data center in Wilmington, DE, into a $16 million carrier hotel. This huge connectivity hub will be able to bring together a large number of networks and providers and will be dedicated to offering a highly efficient and competitive bandwidth interconnection point to Wilmington’s business district.

McConnell Johnson Real Estate is the owner of the 16-story building located at 1201 N. Market Street, along with dark fiber providers Sunesys, LLC of Warrington and Fibertech Networks based in Rochester, N.Y.

According to an interview with the Philadelphia Business Journal, the company’s financial effort will be backed by a grant of $3.8 million for Delaware’s New Jobs Infrastructure Fund.

With the new Wilmington Carrier Hotel Project the investors hope to create innovative business opportunities that can trigger economic growth in the area and throughout the state of Delaware.

In further regional news, TA Real Estate of Boston sold an industrial portfolio along the I-95 Corridor for $36 million to Hayden Real Estate Investment and Miller Investment Management. As reported by the same source, the 1 million square foot portfolio consists of four office buildings and an 18-acre parcel of land already zoned for industrial development in the I-95 Campus Industrial Park in Aston.

West Chester University of Pennsylvania Adds New Student Housing Facility

By Veronica Grecu, Associate Editor

EdR, one of the largest owners, developers and managers of collegiate housing in the U.S., recently announced construction of a new student housing development on South New Street on the campus of the West Chester University of Pennsylvania (WCU).

The $57.5 million investment will be the company’s 19^th collegiate development within the Pennsylvania State System of Higher Education and, according to Student Housing Planet, it will replace the former Sanderson Hall, which was demolished two years ago.

With a completion date set for the summer of 2014, Commonwealth Hall will offer a range of single units to shared-living suites for up to six residents totaling 653 beds. Other amenities featured in the eight-story development project include a fitness center, study lounges and a full residence life program, while the building’s ground floor will be occupied by WCU’s Student Health Services, Counseling Center and Emergency Medical Services.

Jointly designed by Voith & Mactavish Architects of Philadelphia and Pittsburgh-based WTW Architects and built by lead contractor P. Agnes Construction, Commonwealth Hall is part of WCU’s Housing Renewal Initiative that kicked off in 2001 to renovate student housing in all five residences on the university’s campus. The new building’s design will be similar to Allegheny and Brandywine Halls, two residential facilities on the WCU campus that were designed by Voith & Mactavish Architects.

Commonwealth Hall is expected to balance out the lack of student housing inventory WCU is experiencing as more than 20,000 prospective students apply each year at the university.

Renovated Radisson Plaza-Warwick Hotel Philadelphia to Operate Under Radisson Blu Signature

By Veronica Grecu, Associate Editor

Carlson Rezidor Hotel Group, a leading hospitality group based in Minneapolis, Minn., and Brussels, Belgium that operates more than 1,300 hotels globally, announced a $17 million renovation that will rebrand the historic Radisson Plaza – Warwick Hotel into a Radisson Blu signature hotel.

Located in Philadelphia’s classy Rittenhouse Square district, the 87-year-old facility will remain open throughout the conversion. By the end of summer 2013 the new Radisson Blu Warwick Hotel Philadelphia will offer upgraded guestrooms and corridors, and a redesigned grand lobby that will reflect Radisson Blu’s style.

The 301-room hotel is listed on the National Register of Historic Places; it has been recognized by the Green Key Eco-Rating Program with a 4 Green Key rating and was awarded a TripAdvisor Certificate of Excellence based on its outstanding reviews from travelers. The hotel includes four suites, a 2,000-square-foot fitness center, 17,000 square feet of event space and three dining venues.

“The expansion of the Radisson Blu brand to Philadelphia, an international business and cultural center, is a key step in our Ambition 2015 strategy,” said Thorsten Kirschke, president, Radisson, Americas, in a press statement.

Ambition 2015 is a $1.5 billion program that aims to grow the company’s hotel portfolio by at least 50 percent to reach at least 1,500 hotels in operation and under development by 2015. The investment program also focuses on positioning Radisson and Radisson Blu in North America as powerful, globally consistent, first class brands. Operated by the Carlson Hotel Group, Radisson Blu is an upscale hotel brand with 272 flagship properties and 86 under development around the world.

Image of Radisson Plaza – Warwick Hotel Philadelphia via www.radisson.com

Criticized Kingsley Court Development to Kick Off in Roxborough

By Veronica Grecu, Associate Editor

A 3.5-acre vacant property at 5627 Ridge Avenue in Philadelphia’s Roxborough neighborhood will be replaced by a community of 32 twin homes, according to a post on NakedPhilly. While the project proposed by local developer Stephen Goldner has stirred much debate among neighbors who were concerned that the development would be too dense for a suburb, the former Ivy Ridge Assisted Living site has won approval from the City’s Planning Commission.

An older report from Patch.com reveals that other developers have also come up with redevelopment projects for the site of the closed assisted living center, but Stephen Goldner’s project, called Kingsley Court, turned out to be the most documented and interesting.

Reportedly, the property still belongs to Rosalind Lavin—a Villanova socialite who owes the state $700,000 in federal fines—but Goldner has secured a deal to purchase the site. Each of the 32 twin homes will have four bedrooms and 3.5 baths and will be available for sale for around $320,000.

Kingsley Court’s success as a residential development is still uncertain, but the asking sales price is surely above average. According to a Trulia market report quoted by the Philadelphia Inquirer, the average sales price in Roxborough from November 2012 to January 30, 2013 was $246,174. That’s less than half of the asking sales price in Philadelphia’s most expensive neighborhood, Rittenhouse Square, where the average price for the same period was $580,738. The cheapest neighborhoods to invest in are Overbrook, with an average asking sales price of $134,521, followed by Northeast Philadelphia, with $158,267.

Image via Google Maps

‘Philly Fringe’ Festival to Settle in New Home by Fall

By Veronica Grecu, Associate Editor

A 10,000-square-foot red-brick structure at the corner of Race Street and North Columbus Boulevard is being transformed into the new home of Philadelphia Live Arts Festival and Philly Fringe, an annual festival that supports local, national and international artists of all disciplines and levels of achievement.

The former riverfront pumping station was acquired by the organization for $750,000, but the redevelopment effort is estimated to go as high as $5.2 million. President and Producing Director Nick Stuccio told PlanPhilly.Com that the organization has already gathered around 90 percent of that amount, and the remaining $1.5 million is underway.

The first phase of construction calls for a new theater with 240 seats, a studio, and administrative offices projected for completion by fall, just in time for this year’s Fringe Festival (September 6-21). By reaching this milestone, the organization hopes to use the structure’s wide-open spaces for regular art performances. According to Nick Stuccio, the building was in excellent shape and it was already zoned appropriately—this means that the organization can seek a liquor license, which would allow people to grab a drink and spend some time talking about the performances they have, or will, experience.

Phase two, which is expected to be completed by late spring 2014, will bring an indoor restaurant and bar and an outdoor plaza, as well as further upgrades for the 110-year-old building.

Photo courtesy of Google Maps

$160 Million Tower Adds to Student Housing Options in University City

By Veronica Grecu, Associate Editor

A University of Pennsylvania-owned site located at the corner of 30th and Chestnut Streets in Philadelphia’s University City district is being developed into a 33-story student housing tower in a team effort between Brandywine Realty Trust, Campus Crest Communities and Harrison Street Real Estate Capital.

Called The Grove at Cira Centre South, the project was designed to achieve LEED Gold Certification by local architect Erdy McHenry in consultation with master plan architect César Pelli. When completed, in fall 2014, the tower will serve students from various schools from the surrounding area, including University of Pennsylvania, Drexel University and several colleges and universities located in Center City Philadelphia and University City.

The project has a total cost of $158.5 million and it will be financed by a $97.8 million loan from PNC Bank, N.A., and Capital One, N.A. According to a press release from the development team, Campus Crest will act as property manager at the 850-bed upscale housing tower where leasing is expected to begin in fall 2013.

“We recognized the strong demand for graduate and undergraduate student housing in University City and selected Campus Crest for its proven operating platform and track record of success,” said Gerard H. Sweeney, president and chief executive officer of Brandywine.

Future residents will have access to a roof-top swimming pool, a media lounge, several study lounges, a 24-hour fitness center and hotel-like amenities such as coffee service, a library technology center and street level shops.

Rendering of The Grove at Cira Centre South via BusinessWire

New Holiday Inn Express Opens in Bensalem; Philadelphia Area Hospitality Industry Going Strong

By Veronica Grecu, Associate Editor

InterContinental Hotels Group (IHG), a global organization that operates nine major hotel brands, has recently opened a new hotel under the Holiday Inn Express flag in Bensalem, one of Philadelphia’s suburbs. Following extensive renovations, the property located at 1329 Bristol Pike directly off Interstate 95 and just 16 miles from Philadelphia’s historic district was rebranded from a three-story Hampton Inn facility into a top choice destination for business and leisure travelers.

The renovated property is in line with the $1 billion Holiday Inn global relaunch program, the largest project of this kind in the history of hospitality industry that focuses on arrival and welcome services, guestroom and guest bath comfort and a redesigned logo and signage.

Owned by 1329 Bristol Pike Associates and operated by Growth Properties under a license agreement with IHG, the new Holiday Inn Express Philadelphia NE – Bensalem features 141 fully equipped guest rooms and a wide range of amenities such as an outdoor pool, a 24-hour fitness center, a 24-hour business center and a meeting room.

“Holiday Inn Express is a fresh brand that we believe fits well with the needs of visitors to the Philadelphia area,” said IHG General Manager Joanne Johnston in an official statement.

The new Holiday Inn Express opening points to at least four new hotels that are under development or in the early stages of design or approval in the city. According to the Philadelphia Inquirer, the newest hospitality project is a proposed 150-room Hotel Indigo planned by IHG for the Bailey Building at 1218 Chestnut Street and scheduled for opening in the first half of 2014. Two more hotels are expected to open toward the end of the year: a 246-unit Home2Suites at 12th and Arch Streets and a 172-room Courtyard by Marriott at the Navy Yard, while the city’s largest proposed hospitality project, a W/Element Hotel at 1441 Chestnut Street, will feature 700 guest rooms.

When completed, all four hotels would add nearly 1300 rooms to Philadelphia’s inventory of 11,600 rooms. Also, with the new hotel tax of 15.5 percent that will come into effect on July 1, the city is expected to gain 3 percent or 50 cents per room night in additional revenue.

Holiday Inn Express Bensalem photo via www.hiexpress.com

Chart courtesy of Marcus & Millichap Research Services

Penn State Approves Multi-Million Dollar Renovation, Construction Plan for EEB Hub Complex at the Navy Yard

By Veronica Grecu, Associate Editor

A $39 million renovation and construction plan for the Energy Efficient Buildings (EEB) Hub headquarters building complex at the Philadelphia Navy Yard was approved last week by Penn State’s Board of Trustees. The project, which is funded by a combination of grants coming from the state, the U.S. Department of Energy (DOE) and the Economic Development Administration (EDA), targets renovation of the existing headquarters building and the construction of a new facility to provide more research space for EEB Hub’s effort to find new technologies and tools to make commercial and residential buildings more energy efficient.

Created in 2011 by Penn State researchers with the help of $159 million in grants, the EEB Hub is currently headquartered in Navy Yard’s Building 661, a 38,000-square-foot facility completed in 1946 which was left vacant since 1996, when the former Navy Yard recreation center was shut down. Under plans designed by Philadelphia-based architecture firm KieranTimberlake, the building’s main entrance and lobby will be renovated, and the east portion of the building will be reorganized into conference rooms, office spaces and support areas. An Immersive Construction (Icon) Laboratory and a 120-seat symposium will be created on the second floor.

A new building will be constructed directly across the street from Building 661, on an undeveloped 1.05-acre parcel which was acquired by Penn State from the Philadelphia Industrial Development Corporation for $1. The new structure named Building 7R will include several sustainable features such as passive solar shading, geothermal wells and a storm water management system which will collect water from the building’s green roof and direct it to a sculptural field of Pennsylvania slate and boulders, then use it to irrigate the landscape and flush toilets. The 25,200-square-foot Building 7R will include training classrooms, support spaces, and a two-story lecture hall with 180 seats.

Rendering via www.eebhub.org

Bucks County Medical Building Achieves LEED Certification

By Veronica Grecu, Associate Editor

The U.S. Green Building Council (USGBC) has awarded Leadership in Energy and Environmental Design (LEED) certification to a 12,000-square-foot medical office building owned by Lower Bucks Pediatrics, a family-oriented pediatric medical practice in Bucks County, Pa.

Real estate investment and development company Matrix Development Group of Cranbury, New Jersey, constructed the facility under plans designed by Norristown-based architecture and planning firm Barton Partners as part of a retail and residential community called Octagon Center. The 186-mixed-use community spreads between Lower Makefield Township and Middletown Township and was purchased in December 2006. Since then Matrix has been working with government agencies and township leaders to develop the community. Lower Bucks Pediatrics acquired the medical building upon completion, in 2011.

“From the beginning, Lower Bucks Pediatrics was determined to make this an energy-efficient property, which is in line with Matrix’s own commitment to sustainable development practices. Ultimately we were able to identify a solution to deliver a dynamic facility that is environmentally responsible while providing Lower Bucks Pediatrics with significant cost savings on energy consumption,” said Richard F.X. Johnson, senior vice president of Matrix Development Group, in a press release by the company.

The facility’s advanced HVAC system design will allow the owners to save at least 35 percent in energy costs compared to the USGBC baseline, while efficient low-flow fixtures and additional thermal comfort controls will result in a 30 percent reduction in water use.

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Image via Citybizlist

27-Story Apartment Tower Coming to University City

By Veronica Grecu, Associate Editor

In fall 2013 work will start on a 27-story high-end apartment building located at the northwest corner of 36th and Market Streets in Philadelphia, replacing a parking lot owned by the University City Science Center. The project is backed by the Science Center—the first and largest urban research park in the United States—in a joint venture with Baltimore-based Wexford Equities and Southern Land Company of Franklin, TN. It will be the first residential development in the Science Center’s 50-year history.

“This new project will add an entirely new dimension to the Science Center and our campus. It will help us achieve our goal of ‘activating’ our campus and creating a dynamic environment in which to live, work and play,” said Science Center President & CEO Stephen S. Tang, Ph.D., MBA. “As we celebrate our 50th anniversary in 2013, we are looking to the future—and the future of the Science Center centers on a vibrant 24/7 community.”

The 400,000-square-foot residential tower named 3601 Market was designed by local firm BLT Architects with the goal of achieving LEED Silver certification. According to an official statement issued by the University City Science Center, the project is estimated to be completed in two years.

Apart from the 364 market rate rental units—which will range from studio to two-bedroom apartments equipped with stainless steel appliances, granite countertops, washers and dryers—the building will also accommodate roughly 17,000 square feet of ground floor retail space, a green roof, a fitness center, a rooftop pool, a resident lounge and 200 parking spaces.

Established in 1963 in Philadelphia’s University City neighborhood, the University City Science Center is a provider of technology commercialization resources to businesses and programs that sustain new technology businesses. The Science Center occupies around 2,000,000 square feet along Market Street in West Philadelphia and is located near several academic and research institutions such as The Children’s Hospital of Philadelphia, The University of Pennsylvania, Drexel University and The Wistar Institute.

For more data from Philadelphia, click here.

Rendering of 3601 Market courtesy of the University City Science Center

Chart via Marcus & Millichap 

Iroko Moves into New HQ Building at Philadelphia’s Navy Yard

By Veronica Grecu, Associate Editor

Iroko Pharmaceuticals hosted a ribbon cutting ceremony, which was attended by Philadelphia Mayor Nutter, local officials and more than 150 attendees. ”Iroko represents a growing presence within Philadelphia and The Navy Yard’s business landscape, and provides critical economic momentum to the region by triggering job growth at an important time,” said Philadelphia Mayor Michael Nutter who attended the opening ceremony at the South Philadelphia site.

Founded in 2007 as a pharmaceutical company specializing in the development and commercialization of innovative therapeutic products, Iroko used to occupy around 19,000 square feet in another Navy Yard building. “Our new headquarters is symbolic of the huge strides we have made as a company in five short years and demonstrates our commitment to building a strong future for our company and our local community” said Osagie Imasogie, chairman of Iroko Pharmaceuticals.

Iroko’s new 56,412-square-foot global headquarters building is located at 150 Rouse Boulevard and was designed by local architecture firm Digsau to achieve LEED Gold certification. Built predominantly with locally sourced materials, the facility was equipped with high performance systems that manage energy, air, storm water and indoor environmental quality. In order to minimize solar gain, the building’s façade features multiple glass assemblies and precast concrete panels. According to an older report by the Philadelphia Business Journal, Liberty Property Trust and Synterra  Partners invested $15.4 million in this project, which is the seventh commercial property the joint venture developed at the Philadelphia Navy Yard.

Iroko alreay moved its 60 employees in the new building and plans to hire another 120 over the next couple of years.

Click here for a market report on Philadelphia.

 Rendering of Iroko Pharmaceuticals’ headquarters building courtesy of Digsau

Work Starts on $17 Million Affordable Housing for Seniors in Mt. Airy

By Veronica Grecu, Associate Editor

Philadelphia-based developer Nolen Properties broke ground last week on a new senior housing community in the Mt. Airy neighborhood. The $17 million investment centers around a brick and terracotta landmark building constructed in 1895 which will be upgraded and transformed into a 57-unit residential facility.

The imposing mansion is located at 221 W. Johnson Street and was built by philanthropist George Nugent for the care of elderly Baptist ministers and their wives, according to Patch.com. The three-and-a-half-story building was acquired by Nolen Properties in 2002 for $2.5 million, shortly after it was added to the National Register of Historic Places.

With financial help from the City of Philadelphia—which is providing $2.6 million—and low income housing tax credits worth $11.5 million from the Pennsylvania Housing Finance Agency (PHFA), Nugent Senior Apartments will include seven studios and 50 one-bedroom apartments as follows:

• Six apartments designed for handicapped residents
• Three apartments for residents with sensory impairments
• Six affordable apartments for seniors over 62 with incomes less than 20 percent Area Median Income (or $17,150 maximum for one person)
• Forty-two affordable apartments for seniors over 62 with incomes between 50 percent and 60 percent Area Median Income (or $34,260 for one person)

According to a press release from Nolan Properties, rents will range between $195 per month to $794 per month. Nugent Senior Apartments will also include a community room and laundry facilities, as well as an additional construction at the rear of the building which will be used as community space.

Click here for an in-depth market report on Philadelphia.

Image courtesy of Nolen Properties

Philly Developer Could Expand Ritz Five Movie Theatre, Add Apartments on Top

By Veronica Grecu, Associate Editor

A Philadelphia developer is in the preliminary stages of a redevelopment project at the Ritz Five movie theatre located at 214 Walnut St. in the Society Hill neighborhood. Founded in 1976 by Ramon L. Posel as a three-screen theatre, the venue was expanded to five screens a decade later. In March 2007, the Ritz Five was acquired by Landmark Theaters—a large movie theatre chain that owns and operates 52 theaters with 229 screens in 21 cities across the U.S.

According to PlanPhilly.com, Mosaic Development Partners—which serves as Landmark Theaters’ partner on the Philadelphia market—has started working on a plan to modernize and expand the existing Ritz Five structure into a mixed-use development that would include a multi-story residential building. While the actual project is still in the early design stages, the developer shared some ideas with the Society Hill Civic Association’s Zoning and Historic Preservation Committee.

The upgraded theatre facility would feature eight screens. Though the screening rooms would be smaller, they would have comfortable furniture. Additionally, alcoholic beverages would be served by waitresses, and each screening room could be rented for private parties or showings, Zoning and Historic Preservation Committee Chairwoman Lorna Katz Lawson told PlanPhilly.com.

As for the project’s residential component, the developer would build a new facility with around 90 apartment units. The residential building would sit atop the theatre and be at least 14 stories high, which would not require any height variance, said Lorna Katz Lawson.

Over the past year, developers have completed and delivered 877 market-rate rental units in Philaldelphia, and another 1,500 units are slated for delivery in 2013, according to a recent market report by Marcus & Millichap.

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Image via Google Maps; Chart courtesy of Marcus & Millichap

North Philadelphia Data Center Sells for $65 Million to Carter Validus

By Veronica Grecu, Associate Editor

Tampa-based Carter Validus Mission Critical REIT, Inc. has purchased a data center located in the Byberry Industrial Park in the Greater North Philadelphia area.

The 121,000-square-foot 6 Sigma Center was acquired from CSX Corporation for $65 million, or $540 a square foot. As reported by the Philadelphia Business Journal, Robert J. Fahey, Patrick Lynch and Michael B. Harrell of CBRE Inc. represented the seller in this transaction.

Built in 1993 to house data center equipment, and built to stringent reliability and security standards that allows the building to withstand potentially extreme weather conditions, the two-story facility sits on a 14-acre site at 2000 Kubach Road. The data center is currently fully leased on a long-term basis to a large investment management company called the Vanguard Group.

“We believe the quality of this tenant, combined with their long remaining lease term and significant capital investment in the property will provide a consistent rental income stream for our portfolio for years to come,” said John Carter, chief executive officer of the company.

Carter Validus’ 6 Sigma Center acquisition comes three months after the company purchased a portfolio of mission critical data center properties in Texas: the Atos Data Center located in Arlington and the InterNAP Data Center in Plano. According to the Web Host Industry Review (theWHIR.com), Carter Validus paid $45.5 million for these two assets in mid-August.

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Image via Google Maps & Carter Validus Mission Critical REIT