PHILADELPHIA | North Station District | 273 FT | 21 FLOORS

[summersm343]

Title: North Station District
Project: luxury apartments, office, lab space, commercial, retail
Architect: Spagnolo Group
Developer: HFZ Capital Group
Location: Broad Street and Indiana Ave., Philadelphia, PA
Neighborhood: Allegheny
District: North Philadelphia
Floors: 21
Height: 273 FT







Working quietly, N.Y. group moves to develop massive new North Philly enclave

Real estate magnate Ziel Feldman’s properties are in some of Manhattan’s poshest neighborhoods.

Now, he wants to build in one of Philadelphia’s most destitute.

Feldman’s HFZ Capital Group is part of a consortium of New York investors planning a complex of homes, offices, labs, and start-up work spaces in what is now an enclave of vacant warehouse properties and empty lots around Amtrak’s North Philadelphia station.

The $162 million first phase of North Philadelphia District LLC’s proposal calls for two new buildings on what is now the train station’s parking lot, and the renovation of a hulking dilapidated factory site nearby, said Michael Shenot, who is leading the project as a managing director with the real estate services firm JLL, in an interview Friday.

Work could begin before the end of the year if the investor group is granted its request for a $20 million state redevelopment grant to cover parts of the project, said Shenot, who previously participated in developing the World Trade Center Transportation Hub. He is now working on an expansion of New York’s Penn Station involving a historic postal building to its west.

Joining HFZ on the Philadelphia project are the Arete Group, a New York-based developer whose principals include attorney Michael Bailkin, previously a New York City government official, and former Trenton Mayor Douglas Palmer; and Amtrak, which holds a minority stake in the venture. The investment company Merchant Equity Group LLC of New York is a part owner of the development site.

The group envisions up to 1.7 million square feet of residential, office, and retail space at full build-out, bounded by Broad Street and 17th Streets, between Glenwood and Indiana Avenues, according to its application for a state Redevelopment Assistance Capital Program grant.

Planned for the site are a six-story, 105-unit apartment building and a 21-story tower with 128 apartments on nine floors above about 214,000 square feet of offices, Shenot said. Both buildings would feature ground-floor retail spaces that open onto a pedestrian plaza.

Also part of the initial phase is the transformation of the 180,000-square-foot decayed industrial building on an adjacent parcel to the west into work spaces for start-ups and light manufacturers. The developers have that parcel under agreement, Shenot said.

mprovements to the station itself include the restoration of an underground tunnel linking it to SEPTA’s Broad Street Line subway platforms just to the south, he said.

Completion of the apartment building and factory rehab are envisioned in September 2019, with the residential-and-office tower being finished in October 2021, according to the grant application.

Read more here:
http://www.philly.com/philly/busines...t.html?photo_2

[Larry King]

Love the idea... how realistic is this grant?

[allovertown]

Originally Posted by Larry King

Love the idea... how realistic is this grant?

No idea. Past projects have certainly received a lot of cash despite being in much less depressed areas than this project, so you have to think this project gets SOMETHING. But who knows, especially with all the uncertainty surrounding the congressional budget and the terrifying proposal put forth by the executive branch, may mean that the state is less willing to put forth any type of money at the moment.

That said, as I mentioned in the last thread I don't think this is as much of a stumbling as it could be for other projects. Reading the article it seems that funding is already in place for nearly 90% of the project. I'm sure funding could be secured for the remaining 20 million if state funding fell through, especially considering this developer is so deep pocketed, they dropped 7 million just purely on speculative research on the viability and design of the project.

Considering they've already purchased the land and spent 7 million on research, it seems hard to believe they'd let this all fall apart around a sum of money that represents such a small percentage of the entire project and only about twice what they've spent already just on research and land acquisition.

Obviously the more money they get, the more profitable this project becomes, so if they get nothing, that may change the calculus on this just enough that they walk away. But again, I have to imagine they get SOMETHING and once they get that, I can't imagine the sum left over will be large enough for them to walk away from something they've already spent a lot of time and money on.

[cafeguy]

given the unmet need for housing in the area for scientists and healthcare experts around north phila temple campus, this is a great idea and very realistic. This is also seemingly and potentially the third science incubator...science center, pennovation, and now this.

[mcgrath618]

This could be the birth of something huuuuuge

[christof]

Does anyone know what Councilman Clarke thinks of this proposal?

[summersm343]

Originally Posted by christof

Does anyone know what Councilman Clarke thinks of this proposal?

I'm 100% sure he'll be against it. More gentrification in his district means it's less likely he'll be reelected.

[PhilliesPhan]

I sure hope that this project will break ground, and I'm fairly confident that it will based off of the article.

This is a truly transformative proposal that will accelerate the pace of development in the center of North Philly. That area, with its transit-accessibility and collection of beautiful three-story rowhomes should have never fallen into disarray in the first place. Sure, the shuttering of the factories that lined the Northeast Corridor along Glenwood Avenue did contribute to the eventual decline of that area, but it had many assets. This project will bring vitality back to an area, which, IMO, is prime for development.

I have long been advocating for a Temple University-based innovation corridor along North Broad Street, but I have previously thought of it extending from Girard to Susquehanna. This project could be the catalyst of realizing an innovation corridor between Girard and Erie, which would connect our Main and Health Sciences campuses together.

Great news, and I hope it actually breaks ground! I've been rooting for North Philly for quite a while, even in the face of doubt from its detractors.

[christof]

Originally Posted by summersm343

I'm 100% sure he'll be against it. More gentrification in his district means it's less likely he'll be reelected.

Unless you please Mr. Clarke, this project ain't going anywhere...

[Larry King]

I'd say financial feasibility is much more of a roadblock than city council. I think Clarke is better to deal with than given credit for. Question is if money is coming out of Harrisburg these days... is a big grant actually in the cards here?

[Nova08]

What is the business environment in North Philly for 215,00 sq of business/labs/start-up space and "luxury apartments?"

Call me short sighted but I get a little cautious when we start to spread our start-up/research/lab type development so thin across various parts of the city. Get's me a little worried that developments like the Science Center will take longer to get all of the buildings off the ground.

I mean for all intents and purposes we should just call this Septa North Philadelphia station. You can probably count the number of Amtrak trains that stop at North Philly on two hands. It has no where near the importance that North Philadelphia station held with the Pennsylvania Railroad.

[kingtut]

One of Philly's biggest negatives is it's poverty rate and N. Philly is ground zero in that respect . Any capital investment will only , especially from outside of government , be of great benefit for the people of N. Philly . Temple being a R1 rated research university has great potential for innovation and this project would provide an inexpensive lab and office space for start-ups . I hope this happens as planned .

[summersm343]

Originally Posted by PhilliesPhan

I have long been advocating for a Temple University-based innovation corridor along North Broad Street, but I have previously thought of it extending from Girard to Susquehanna. This project could be the catalyst of realizing an innovation corridor between Girard and Erie, which would connect our Main and Health Sciences campuses together.

I 100% think Temple should think about starting a tech/science incubator and innovation corridor similar to the Science Center. They should center it around the Amtrak station here. It would be a boon for the area, and give a shot in the arm to the area between Temple Main and Temple Health Sciences Campus.

The neighborhoods between Center City and Temple Main are improving on their own. Let them continue to build up organically. Focusing on developing an innovation corridor here would be a huge boon.

Originally Posted by Nova08

What is the business environment in North Philly for 215,00 sq of business/labs/start-up space and "luxury apartments?"

Call me short sighted but I get a little cautious when we start to spread our start-up/research/lab type development so thin across various parts of the city. Get's me a little worried that developments like the Science Center will take longer to get all of the buildings off the ground.

I mean for all intents and purposes we should just call this Septa North Philadelphia station. You can probably count the number of Amtrak trains that stop at North Philly on two hands. It has no where near the importance that North Philadelphia station held with the Pennsylvania Railroad.

I get your cautiousness, but this could be very successful if done right. There is an Amtrak station, a SEPTA Regional Rail station, and a Broad Street subway line stop all converging on this property.

Temple should start thinking about creating a tech and science incubator and innovation corridor similar to the UCity Science Center and take up lab and office space in this development. Why doesn't Temple move their Podiatry school here from Center City as well, and sell the current site to a developer?

I think that could definitely take up a lot of the commercial space.

[PhilliesPhan]

Originally Posted by summersm343

The neighborhoods between Center City and Temple Main are improving on their own. Let them continue to build up organically. Focusing on developing an innovation corridor here would be a huge boon.

I can definitely agree with that. The market can, and is, taking care of the area between CC and TU Main. Building up incubator space in the area around North Philadelphia Station (let's arbitrarily say between 13th, 16th, Allegheny, and Lehigh) could kickstart the revitalization between Main and Health Sciences, which I would say as being between Susquehanna-Dauphin and Erie on the BSL; the market is taking care of everything close to North Broad up to Susquehanna-Dauphin.

Regarding the Swampoodle Connection, I don't think it will considering that SEPTA made a capital investment in the CHW bridge over the ex-Reading main a few years ago. Constructing a new interlocking involves more than just tracks; in fact, the heavy work comes in the form of re-configuring signal systems. Also, although it may free up space on the NEC, adding another train that has to cross the entire SEPTA Main Line at 16th Street Interlocking (the Manayunk/Norristown Line already does) may complicate other systemwide train movements due to the line becoming double-tracked north of Wayne Junction.

Besides, people employed here, as well as new residents, may find this connectivity very useful.

[El Duderino]

what about temple as a potential institutional investor? seems like it could be a worthwhile investment into the neighborhood, though i admittedly have no idea the likelihood. but if drexel has a few billion to drop...

[kingtut]

Originally Posted by El Duderino

what about temple as a potential institutional investor? seems like it could be a worthwhile investment into the neighborhood, though i admittedly have no idea the likelihood. but if drexel has a few billion to drop...

I don't think Drexel is the main driver of 30th st or the N.station projects . It looks like Amtrak is trying to get into developing it's real estate holdings along with Septa .

[jhdiesel]

Originally Posted by kingtut

I don't think Drexel is the main driver of 30th st or the N.station projects . It looks like Amtrak is trying to get into developing it's real estate holdings along with Septa .

There are two developments in the works at 30th St, and Drexel is the main driver for one of them.

As for this proposal, seems like this could be a good opportunity to make the Swampoodle Connection happen.

[eixample]

Originally Posted by jhdiesel

As for this proposal, seems like this could be a good opportunity to make the Swampoodle Connection happen.

If SEPTA made the swapoodle connection (connecting chestnut hill west line to the Reading main line???), would they give up that one right of way curving through this property?

This project illustrates how important transit stops/transit oriented development can be for the growth of the city outside the core. Now imagine the development potential if we switched to a modern Parisian/German regional rail system where multiple trains arrive every hour. The infrastructure improvements required to modernize the regional rail system (all high level platforms mainly) would pay for itself in increased property values.

[christof]

Originally Posted by El Duderino

what about temple as a potential institutional investor? seems like it could be a worthwhile investment into the neighborhood, though i admittedly have no idea the likelihood. but if drexel has a few billion to drop...

With the state leveling off funding, and with cuts all but certain in future years, I doubt Temple will get involved with this project.

[El Duderino]

Originally Posted by christof

With the state leveling off funding, and with cuts all but certain in future years, I doubt Temple will get involved with this project.

isn't that even more motivation for temple to contribute? it seems as if a $20m investment would be at least intriguing from their side considering how much more attractive the area would be for potential undergrads/grad students/faculty and staff. my previous note re: drexel was just to point out how they are willing to spend multiple billions to create something similar (mixed use, innovation, transit connections, etc.) to what temple could help enable by contributing a very small fraction of that drexel number.

again, i have absolutely no insight into how funding shakes out for something like this, but from a practical standpoint, i can't see how both sides (developer team and temple) wouldn't at least be willing to have a conversation.

now i'm just waiting for someone to tell me exactly how and why i'm wrong B-)