‘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.

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 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