PHILADELPHIA | Parkway22 | 407 FT / 124 M (I) | 187 FT / 57 M (II) | NEVER BUILT

[Swinefeld]

Parkway 22

Website: Parkway22

Location: 21st and Hamilton Streets, Philadelphia, PA 19123
Usage: Residential

Tower I
Height: 407' (124 meters) Floors: 35

Tower II
Height: 187' (57 meters) Floors: 16

Architects: Burt Hill Architects
Developers: V&H Hotel Associates (an affiliate of Naveh-Shuster)
Estimated Cost: $300,000,000
Units/Prices: 254 units
• Condominiums from mid $300,000s
• Lofts from upper $300,000s
• Townhomes from mid-$800,000s
Groundbreaking: November 2007
Completion: 2009
Amenities/Features:
• 24 hour concierge
• Restaurant with outdoor seating
• State-of-the-art wellness center
* Indoor swimming pool with hot tub
• High ceilings
• Stainless steel appliances
• Full-size washers and dryers

Trivia:
• The first name for the project was the Barnes Tower in recognition of the priceless Albert Barnes art collection that will eventually move to the Benjamin Franklin Parkway.
• Originally planned to be 100' taller, the uproar from the local communities of Fairmount and Spring Garden forced the developer to scale down the project from a single tall tower to two shorter towers. Increased traffic and shadows were the main complaints.

Images

Future site (Currently the Best Western Hotel)


Full page ad


Interior views






Renderings from Burt Hill Architects




View showing new shorter tower (dark blue) in relation to proposed Barnes Tower


Renderings of the rejected Barnes Tower proposal.


Aerial view of rejected Barnes Tower proposal.

[Lincolndrive]

Nice job Swiny. Thanks

[Wheelingman04]

Thanks for posting this.

[sharkfood]

I'm voting this project as "the project most likely to go into construction next in Philadelphia."

It is being marketed quite heavily. More so than Mandeville, 1706 Rittenhouse, or any of the other proposals which have not started construction. To me, this is a sign that the developers are serious.

In addition, it was reported I think in the Philadelphia Business Journal that some construction firm had already been hire to handle "pre-construction work." (Maybe that means demolition and site preparation.)

The first signal we should watch for, of course, is the closing of the Best Western Inn. Remember when the Budget Rent-A-Car closed for Murano and fencing went up around the site. That's what we should watch for.

[BigDan35]

Doesn't look bad. A little plain maybe...but not bad. Of course, it's a new project and of decent height (406 feet) so I welcome it. But why was the taller Barnes Tower rejected?

[theWatusi]

Originally Posted by BigDan35

But why was the taller Barnes Tower rejected?

The dreaded shadows!

[CondoGuru]

It looks like a beautiful project but my only skepticism is its likelihood of actually being built with such unrealistically low prices. Construction costs have risen so dramatically in the last three years which is why so many other projects got canned. They can't sell units for less than what it costs to build them, that's obvious. 10 Rittenhouse had to start over because they undersold several units. They had to kill some contracts, reconfigure and reprice the building altogether. They're using the Marketing Directors from New York to manage their on-site sales and marketing now because they couldn't do it effectively on their own or with local brokers. Look around at the what? 3 or 4 highrises under construction, and you see starting prices well above $500K for a very good reason. Most of these buildings if they had to start over again, would never have been built today unless their prices were far higher to cover such increases in today's construction costs. Remember 1919 Market and how everyone went apeshit over 1BR + Dens for $250K? How'd that turn out? While it's a lovely idea to think one can get a new highrise condo for $360K, I just don't see how it's possible. Unless of course, you believe in Santa Claus and the Tooth Fairy.

[Lecom]

A decent addition to a neighborhood that would be much greater if it had less pointless open spaces and occupied sites that are just about as pointless (such as this one).

[phillyskyline]

I'm not feeling this typical boxy project....

[Plompy Lfeata]

it seems like i first heard about this only a few monthes ago, and now ground breaking is set for november. im glad to see this will actually come to fruition. the continuing construction in philly is amazing, i look forward to see this tower start construction!

[volguus zildrohar]

CondoGuru, I don't know if I've asked you this before but would you call speculation a problem in Philadelphia's condo market at the level of this project? Correct me if I'm wrong but isn't that the reason there's the glut of such housing in places like Miami now?

There was a time about two years ago or so, as I'm sure you're aware, that literally a week didn't go by without a large scale condo being announced somewhere. The difference between Philadelphia and many other cities is that the big projects here never got built. Does it seem like speculators are jumping in on this city since the crash didn't hit us so hard? I hate sounding so amateurish but it's been on my mind.

[CondoGuru]

Originally Posted by volguus zildrohar

CondoGuru, I don't know if I've asked you this before but would you call speculation a problem in Philadelphia's condo market at the level of this project? Correct me if I'm wrong but isn't that the reason there's the glut of such housing in places like Miami now?

There was a time about two years ago or so, as I'm sure you're aware, that literally a week didn't go by without a large scale condo being announced somewhere. The difference between Philadelphia and many other cities is that the big projects here never got built. Does it seem like speculators are jumping in on this city since the crash didn't hit us so hard? I hate sounding so amateurish but it's been on my mind.

Yes and no. The fact that there were NOT rampant speculative buyers flooding Philadelphia was the reason why most of the past proposals never got built. And thank God for that! Philadelphia buyers are 90% users, meaning they buy real estate to occupy as their primary residence. Miami's problem was that the vast majority of its buyers were speculators for whom they overbuilt. Speculators are typically not committed buyers and are usually subrime candidates. The oversupply down there is due to these speculators not getting loan approvals, defaulting on their contracts, and losing their deposits. When the market couldn't absorb the oversupply, speculators couldn't flip their contracts. Most developers in Philly with the exception of Waterfront Square, never allowed reassignment of contracts in order to discourage that speculative investor from buying. Philadelphia has not seen any of this due to the demographic of its buyers. We're very conservative here and the psychology of buyers is completely different. It's entirely possible that Parkway 22 may very well happen, it's just not going to happen as soon as they claim. If the developer is totally committed and they get construction financing, it will rise. The cost of construction will only ever go up, so for a building slated to be completed in 2010 or more likely 2011, the market may be very different by then and will most certainly be on an upswing, making a new building like this more desirable. But if they undersell their units, getting financing will be tough, unless they dramatically raise their prices to cover the units they undersold. Putting down 10% or even 20% for a $369,000 unit that you won't have to close on until 2010 or 2011 is a no brainer. I just don't see how it can happen at such low numbers.

[mja]

Originally Posted by CondoGuru

Yes and no. The fact that there were NOT rampant speculative buyers flooding Philadelphia was the reason why most of the past proposals never got built. And thank God for that! Philadelphia buyers are 90% users, meaning they buy real estate to occupy as their primary residence. Miami's problem was that the vast majority of its buyers were speculators for whom they overbuilt. Speculators are typically not committed buyers and are usually subrime candidates. The oversupply down there is due to these speculators not getting loan approvals, defaulting on their contracts, and losing their deposits. When the market couldn't absorb the oversupply, speculators couldn't flip their contracts. Most developers in Philly with the exception of Waterfront Square, never allowed reassignment of contracts in order to discourage that speculative investor from buying. Philadelphia has not seen any of this due to the demographic of its buyers. We're very conservative here and the psychology of buyers is completely different. It's entirely possible that Parkway 22 may very well happen, it's just not going to happen as soon as they claim. If the developer is totally committed and they get construction financing, it will rise. The cost of construction will only ever go up, so for a building slated to be completed in 2010 or more likely 2011, the market may be very different by then and will most certainly be on an upswing, making a new building like this more desirable. But if they undersell their units, getting financing will be tough, unless they dramatically raise their prices to cover the units they undersold. Putting down 10% or even 20% for a $369,000 unit that you won't have to close on until 2010 or 2011 is a no brainer. I just don't see how it can happen at such low numbers.

The developer has owned this property for a very long time. The parcel cost them basically nothing. Perhaps this is why the price point is lower than some other projects?

[CondoGuru]

The land acquisition has very little to do with the cost per buildable square foot. The size and configuration of units, total square footage and supply contracts for materials and construction are what dominate the budget. If they presell their 90 or 100 units required to get construction financing, they have a choice. They can buy the building and its finishes, keeping the cost per buildable foot fixed. Or, they can offer multiple finish options and have open-ended contracts with their suppliers, which means the cost to acquire those finishes goes up quarterly until they place the orders and deliver deposits. Problem is, they can't submit orders until a buyer comes in and chooses, making a huge percentage of the building exponentially more expensive to build the longer it takes for customers to commit and choose their finishes. That's why it's better for a large ambitious project like this to pre-package its finishes, keeping the construction costs fixed. It's the only way to get a building of this size out of the ground.

[sharkfood]

There has been a drastic decline in residential construction in the United States in 2007. CondoGuru, how can you contend that this "softening" of the market is not having an effect on the cost of construction labor/materials?

[TheMeltyMan]

Buildings can't talk.

[skyscraper]

Originally Posted by TheMeltyMan

Buildings can't talk.

is that a disappointment? were you expecting them to?

[Parkway]

To answer my own question It sounds like construction is to begin in june.
http://www.parkway22.com/

[CondoGuru]

Did anyone happen to attend Parkway 22's Renoir preview event at the Art Museum? It was a very stylish event with almost no mention of the project whatsoever. I was stunned. Ed Rendell must certainly have some kind of financial interest in this much like he did at Waterfront Square. Plenty of speeches and political posturing, but nothing about the building, its design, viability, sales, etc... I did enjoy the art and drinks however. Thanks guys!

[skellergroup]

I believe there will be an open house for this building at the sales center the first two weekends in DEC.

Just in case anybody is interested.