Posted May 20, 2016, 2:51 PM
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Join Date: Jun 2005
Location: delco
Posts: 2,396
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Those houses are so abnormally tiny and flimsy looking, one could easily infer that Forest City is simply investing a minimal amount now to maintain a bit of additional cash flow for, say, ten years, before it takes a tax write-off and rips these down for another highrise.
Maybe the financials work better that way than just leaving any empty lot there till they're ready to move on another tower.
I think this is being developed by Forest City, and I believe Forest City is a very cautious, very deliberate company - their activity in Philly has always been one step at a time - first Museum Towers I back in the late 80s/early 90s, then One Franklin Town Blvd a few years later, then the Drake rehab around 2000, then the Bell of PA Bldg rehab a few years later, then this, each separated by several years. I think they hold their properties for the long term, too. They seem perpetually to be dipping their toes to test the waters to get very comfortable that the market will bear whatever new thing they want to bring online . . . . as compared to, say, Pearl Properties, which has quadrupled down on Center City with multiple projects running simultaneously, and which seems to like to flip these things off their balance sheet fairly quickly.
Now that Comcast is going bananas around 19th & Arch, I could see Forest City soon demoing that awful two-story garage they have there next to the Bell of PA bldg for another apartment building. Maybe that will be their next project in a few years.
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