PHILADELPHIA | The Development Thread VIII

[McBane]

What's up Diesel?!

On one hand the new Drexel building is plain jane. I thought they were moving past that? On the other hand, the street level looks good. Plus it's being designed by Stern, so it won't be terrible. As Scream implied, if they use quality materials, it could be a winner. Certainly not like that Drexel dorm but a decent addition nonetheless.

[ScreamShatter]

I also hope they do some nice uplighting on that building. With the way the windows are angled, it could look amazing and very unique at night.

[DIESELPOLO]

Scream, uplighting indeed! In total agreement. Yeh, one might think Stern would go with limestone, but I imagine the material will be a stone of some sort.

McBiz, I'm semi-thinking that the commanding aesthetic is intentional for a b-school. The perforated window scheme is a little relentless for me, but I do love the linear-ness of the rectangles. The roof decks and that upper balcony look serious though.

[EastSideHBG]

There's a really good map in the article as well, be sure to follow the link:


New study puts a hefty price on Philadelphia blight

By Jennifer Lin
Inquirer Staff Writer

The problem of blight has confounded Philadelphia mayors for decades and generated volumes of policy papers.

Now comes a new study, and an urgent warning: Do something posthaste, because vacant land and abandoned buildings are costing us dearly.

Released Wednesday, a report prepared for the city's Redevelopment Authority (RDA) and the Philadelphia Association of Community Development Corps., representing nonprofit developers, has taken a stab at calculating the financial impact of 40,000 vacant properties.

Among the findings:

Philadelphia's surfeit of blighted properties undermines the total value of real estate in the city, estimated at $50 billion, and drags it down by $3.6 billion, an average of about $8,000 per household.

The city is spending $20 million a year to maintain vacant lots, clean up waste, demolish or seal dangerous buildings, and provide extra fire and police protection.

The owners of 17,000 blighted parcels owe the city $70 million in back taxes, a sum that increases $2 million a year.

"This is costing all of us," said Lee Huang, a director of Econsult Corp., an economic research firm that led the study. "All of us are losing property value, household wealth, and the city is not collecting the tax revenue it's due."

Read more: http://www.philly.com/inquirer/home_...#ixzz151oK5Vww
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[thenbagis]

That map is real interesting. I wish there was a larger version of it available. Also, I'd be interested to see the same map from 10 and 20 years ago. I imagine as bad as that map looks it's probably a significant improvement from 10 and 20 years ago. Neighborhoods like Northern Liberties and Graduate Hospital have surged and brought Fishtown and Greys Ferry along for the ride.

[Ninjawho]

http://www.philly.com/philly/busines...new_parks.html


This is interesting. (not just the Time Sq. thing either). But I'm not sure it's well thought out. I'm not sure adding "Time Sq. type lights" is going to magically transform the character of that neighborhood. It could make it worse.

[volguus zildrohar]

The Market East-Times Square deal again.

I have a suggestion - if you want to make Market East more attractive to shoppers at night, get more attractive stores and do something about the vagrants. This is a pig with lipstick.

[aro1419]

The Museum of Jewish American History is opening (or open?) today, finally. http://www.philly.com/philly/news/20...h_history.html

[Ninjawho]

I thought the PMA's Gehry expansion was in the 10 year plan. In fact, I saw a tapped meeting of Timothy Rub presenting the 10 year plan and he specifically said the underground expansion was so far in the future they didn't even have specs for it yet and put it maybe 20 years in the future.

What changed?

[acenturi]

Originally Posted by aro1419

The Museum of Jewish American History is opening (or open?) today, finally. http://www.philly.com/philly/news/20...h_history.html

Now if we could get the notoriety this opening has produced for every new museum it would be great. Just about every major jewish A-List actor and politician is here this weekend - e.g. Streisand, Middler, Seinfeld, Biden (irish), etc.. All events are sold out. Who else could afford $5K/person for a Gala seat.

[EastSideHBG]

Quarterly Philly condo sales still strong

By Alan J. Heavens
Inquirer Real Estate Writer

Boosted by sales coming at the tail end of the federal tax credit, and at auctions of unsold units at Center City high-rises, Philadelphia's condominium market remained strong in the third quarter.

Five hundred twenty-five transactions were recorded between June 30 and Sept. 30, compared with 604 completed sales in the second quarter, according to data compiled by economist Kevin Gillen, vice president of Econsult Corp. of Philadelphia, from deeds recorded during the quarter.

City condos are "one of the few relative bright spots in the region's current housing market," Gillen said.

"It was a big bet for both developers and the city to believe we could absorb the largest amount of new units since the post-World War II boom," he said. "The fact that we continue to not only do so, but in such a difficult economy, makes the Center City market not only a real, but also surprising, success story."

Still, the expiration of the tax credits for home buyers meant sale agreements for condos plummeted as the third quarter progressed. To qualify, deals had to go to settlement by June 30 or, after a government extension, be in the pipeline to close by Sept. 30.

Two hundred contracts were signed in September compared with 500 in June, Gillen said.

Regionwide, that helped push condo inventory to a record 22.3 months from about 15 months in June, and it hints that fourth-quarter city transactions will plummet.

Read more: http://www.philly.com/inquirer/busin...#ixzz15Gu4c3aP
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[UrbaniDesDev]

Originally Posted by EastSideHBG

There's a really good map in the article as well, be sure to follow the link:


New study puts a hefty price on Philadelphia blight

By Jennifer Lin
Inquirer Staff Writer

The problem of blight has confounded Philadelphia mayors for decades and generated volumes of policy papers.

Now comes a new study, and an urgent warning: Do something posthaste, because vacant land and abandoned buildings are costing us dearly.

Released Wednesday, a report prepared for the city's Redevelopment Authority (RDA) and the Philadelphia Association of Community Development Corps., representing nonprofit developers, has taken a stab at calculating the financial impact of 40,000 vacant properties.

Among the findings:

Philadelphia's surfeit of blighted properties undermines the total value of real estate in the city, estimated at $50 billion, and drags it down by $3.6 billion, an average of about $8,000 per household.

The city is spending $20 million a year to maintain vacant lots, clean up waste, demolish or seal dangerous buildings, and provide extra fire and police protection.

The owners of 17,000 blighted parcels owe the city $70 million in back taxes, a sum that increases $2 million a year.

"This is costing all of us," said Lee Huang, a director of Econsult Corp., an economic research firm that led the study. "All of us are losing property value, household wealth, and the city is not collecting the tax revenue it's due."

Read more: http://www.philly.com/inquirer/home_...#ixzz151oK5Vww
Watch sports videos you won't find anywhere else

What is the solution?

[ScreamShatter]

Originally Posted by UrbaniDesDev

What is the solution?

Not to sound socialist (because I'm actually very fiscally conservative), but the solution is for the government to take over properties that aren't paying taxes and then sale the property to private investors.

The majority of those properties are around Temple...do you really think the university wouldn't jump at the chance to purchase most of that??? Or perhaps they'd partner with private firms to develop more residential midrises.

If the city partnered with Temple to do that and develop that area, it would essentially create a permanent economic and safety fix for that part of the city.

[phillyaggie]

Originally Posted by ScreamShatter

Not to sound socialist (because I'm actually very fiscally conservative), but the solution is for the government to take over properties that aren't paying taxes and then sale the property to private investors.

The majority of those properties are around Temple...do you really think the university wouldn't jump at the chance to purchase most of that??? Or perhaps they'd partner with private firms to develop more residential midrises.

If the city partnered with Temple to do that and develop that area, it would essentially create a permanent economic and safety fix for that part of the city.

Totally agree with you. There is such a lack of new, modern apartment complexes in this city it is truly amazing! Most of the rentals in Center City, for example, seem to be not professionally managed apartment companies but small-timey condo and building owners that convert residences or condos into apartment rentals.

The apartment rental market is so squeezed right now that there is barely any extra capacity-- vacancy rates are extremely low that it's hard to find apartments in this town. So there is definitely a huge market for some nice, new mid-rise apartment complexes. Heck, with all that land that's tax delinquent, you can even build garden-style apartment complexes and bring some much-needed variety to the housing style market in Philly.

Just imagine at minimum, about 10-20 more of apartment complexes like 777 S. Broad. Not necessarily at that high a rental rate but something more reasonably priced...if the labor market can let something like that be build in Philly, that is.


Of course, for any of this to happen, you would need some real thinkers and leaders and imagination in City Hall and elsewhere in this town. Instead, you have guys like Darrell Clarke writing up bills in City Hall to handcuff Temple and its students from buying up more property and developing more of "da 'hood." And why not? Keep your voters down and on the government dole...that way you keep winning elections, and the cycle repeats.

[Phil_North]

Originally Posted by volguus zildrohar

The Market East-Times Square deal again.

I have a suggestion - if you want to make Market East more attractive to shoppers at night, get more attractive stores and do something about the vagrants. This is a pig with lipstick.

I went shopping in the gallery last week for the first time in years. It's amazing how this place that I loved as a kid and as a teen was so much less than desirable now as I am an adult with a family. I definitely see why it's attractive to teens and was attractive to me at one time. I also see why it's attractive to criminals.

The audience that the Gallery itself is aimed to attract are low-income and working class people who can easily access it by public transportation. If the "Times Square" lights plan is well thought out it could be an improvement. If some incentive were given to potential business owners to open up restaurants and bars along Market street, bringing people to the streets rather than inside of the Gallery then it may help. If Market street were lined with lights and billboards from 7th to 13th, there has to be something to draw people to the area.

[cubanChris]

Originally Posted by phillyaggie

Just imagine at minimum, about 10-20 more of apartment complexes like 777 S. Broad. Not necessarily at that high a rental rate but something more reasonably priced...if the labor market can let something like that be build in Philly, that is.

Which is why the proposal along 21st & Chestnut is a worthwhile replacement for the Hillman Medical Center, in my opinion.

We'll see if it happens, its been pretty quiet for a while on that project - though the Chicago developer just opened some swank offices in CC.

[thenbagis]

Originally Posted by ScreamShatter

Not to sound socialist (because I'm actually very fiscally conservative), but the solution is for the government to take over properties that aren't paying taxes and then sale the property to private investors.

The majority of those properties are around Temple...do you really think the university wouldn't jump at the chance to purchase most of that??? Or perhaps they'd partner with private firms to develop more residential midrises.

If the city partnered with Temple to do that and develop that area, it would essentially create a permanent economic and safety fix for that part of the city.

Yeah... this is exactly what needs to happen. I'm not sure the laws though. What power does the state/city have to take over properties that have not paid taxes. I'm guessing it is currently a weak law. Maybe Nutter can wheel and deal with Corbett. Explain that if Philly gets a tougher law, they can auction off these properties and the city will need less state aid.

It would be awesome to see the city set up (contract out...) an ebay like website where each week, they put another block of 10 properties up and developers and wanna-be developers can bid on the properties.

Also, maybe the city could use some of the funds gained from auctioning off properties to create a few strategically located parks.

The biggest downside of this process it that it may drive down property values in the city with such a large volume of properties hitting the auction block in a short period. But I think over the long term, property values would be higher than if nothing was done.

The other downside would be if they were auctioned off for too cheap, you could have speculators buy-and-hold properties... which does nothing for the city. Maybe there could be some clause about if the property isn't habitable in 3 or 5 years, you forfeit the property? As long as the clause is known prior to the auction, I see no problem with that.

Anyone else have any ideas?

[phillyaggie]

Originally Posted by Phil_North

The audience that the Gallery itself is aimed to attract are low-income and working class people who can easily access it by public transportation. If the "Times Square" lights plan is well thought out it could be an improvement. If some incentive were given to potential business owners to open up restaurants and bars along Market street, bringing people to the streets rather than inside of the Gallery then it may help. If Market street were lined with lights and billboards from 7th to 13th, there has to be something to draw people to the area.

Build the two towers that were supposed to go above the Gallery, bring jobs to Market East. If you can't fill both towers with offices, perhaps one of the towers can be apartments. People animate the streets, lights can only go so far. What Market East needs, IMO, is a better/different mix of people using it, so it needs a better/different mix of uses. Currently, it's all low rent, low price shops. Philly's Market East can easily be like the Market St in San Fran, which used to be a bad part of town but has turned itself around over the years. Ironically, SFO's Market St was named for and modeled after Philly's Market St. during its glory days.

[phillyaggie]

Originally Posted by cubanChris

Which is why the proposal along 21st & Chestnut is a worthwhile replacement for the Hillman Medical Center, in my opinion.

We'll see if it happens, its been pretty quiet for a while on that project - though the Chicago developer just opened some swank offices in CC.

yes, I'm all for bringing more people and more animated street life toward Schuylkill River. The buzz markedly drops off once you're past Rittenhouse Square on the west side, say past 19th st. I was just walking over in that neighborhood last Friday for lunch and 22nd st and Chestnut felt so quaint and quiet for being in the middle of a huge downtown. Those streets are lined with two story buildings when they could potentially be lined with multi-story apartments or condos or businesses. You're not far from the Schuylkill River Trail, you're not far from the Rittenhouse Sq itself, and the area even has a good elementary school (I think). You also have trolley connection to Penn and Drexel if buses aren't enough. With all the amenities already there, and the goal of connecting the fiber of Center City to University City in a seamless urban zone, you would think those few blocks west of the square would be prime spot for growth. The quiet residential blocks north of there, between Logan Sq and Arch St...that's another zone that's almost under-dense for its location...then again, that area feels pigeon-holed and in no-mans land, stuck between Vine St Expressway and what not, with not a lot of established functional retail such as grocery stores etc (though Trader Joe's would be close by). I don't know... just feels like all those blocks could hold another 20k-30k people if they were high rises. Not gonna happen, I know.

[hammersklavier]

Rittenhouse-Fitler is the largest intact upper-class Victorian neighborhood in the city. It is an enormous historic district. While yes, I agree that Chestnut and Walnut get quieter west of Rittenhouse Square, it's important to remember that Walnut, west of 20th or so, becomes markedly less of a commercial street. However, the conversion potentials are strong, and the presence of the Banks is slowly pulling Center City further west.

However, I would like to suggest that the best markets for new apartment buildings are precisely the same areas that are most eviscerated by parking along the Center City fringe: the south Avenue of the Arts, west JFK Bvld., Franklin Town, North Broad, the Spring Garden Industrial District (...what to call it? too far north for Old City; too far south for the Northern Liberties...), and the central waterfront.

Another issue is that the market's structure's skewed towards home-ownership (in the form of the 10-year tax abatement). How would high-quality apartment structures take best advantage of the tax code?

P.S. Would the Apts @ 1220 (1220 N. Broad), a recent renovation of the old Regency, be a template complex, aggie?

There are three tower pads on the Gallery. Two mirror each other over Gallery II (one's over the Old Navy; the other, Five Below et al.); the third covers the easternmost atrium of Gallery I by the old Strawbridge & Clothier building. Interestingly enough, none of these pads are over an anchor, and the way they range, the west part of Gallery I is the only section of the mall neither under a building pad nor over a street.

The mall has more potential than is being realized. The Kmart can and ought to be converted into a Sears and expanded to fill the currently-vacant third floor of the building; the Strawbridge's should partition the remaining vacant floors (4-7 are occupied by the state offices) such that 1-3 become a new department store and the basement something like a Filene's Basement. (Actually, a Filene's Basement would be preferable.) Strong anchors strengthen the building, and the Gallery's weak anchors weaken it.

My main suggestions for capital renovations on the main structure--besides a façade redo with a color scheme that clearly differentiates between anchor sections and mall sections, Januses all street-level retail, and adds a new primary mid-block Gallery II Market Street entrance--would be renovations opening up the skywalks, on the Gallery I side for a new main food court contained entirely on the skywalk separating its east and west atriums, and on Gallery II between two and four casual dining locations, primarily going after national (Cheesecake Factory), regional (Friendly's), and emerging local (Sang Kee, Tiffin) franchises.

The other important renovation is to close in the sunken plaza, elevate the entrance to the first floor, and convert the old plaza space into new retail space.