PHILADELPHIA | Lowrise/General Developments Thread II

[Jayfar]

Originally Posted by therealdawk

I walked by the Walnut Garden on Saturday probably sometime between 4:30 and 5:00 and there was a bit of a waiting line to get into the door. The place looked packed. Seems like there was a little play area for kids towards the front left side as you look in.

This adds a whole new element of vibrancy to that stretch. A very good use of an empty lot. Is this just a one year thing and then construction begins next year?

The articles on it hinted it could be for more than 1 year. The developer who acquired the lots is waiting for more favorable financing and market conditions as I understand it.

[Mtphilly]

I echo everyone else that the city the last few weeks has been very vibrant. Actually the last few months things have really taken a turn for the better. As for Walnut Garden, I know it’s not the best use of the space but I’d almost rather it stay a beer garden, I love when streets are mixed use and it’s not just retail on one street or just restaurants on one street. It adds a different type of vibrancy and green space to Walnut Street.

[yuryphilly]

I moved back to Philly last summer, and the mood was very negative, so much negativity in the news, it made me a bit upset because I could remember how it was between 2015 and 2020, every year the city was getting better. I am glad that this spring the city finally started to improve, the vibe in the city is much better than last summer.

[PHLtoNYC]

Good read, a shift in market conditions, but expected, and likely short term.

New apartments are flooding the Philadelphia market, slowing rampant rent increases
https://www.bizjournals.com/philadel...ncreasing.html

A perfect storm is creating a swell of new apartment inventory in Philadelphia, boosting the number of residential vacancies in the city and slowing rent increases.

In the first three months of this year, there were 1,583 new apartments delivered in the Philadelphia market, according to a CBRE report, and the average monthly rent per unit in the market was $1,682. There are also 25 projects with at least 100 units under construction in or around Center City which will deliver a combined 8,467 units when completed, per CBRE.

Last year, there were 5,853 new housing units delivered in Philadelphia, according to Center City District.

According to CBRE, the surge in apartment deliveries pushed the multifamily vacancy rate in the Philadelphia market up to 5.6% in the first quarter, up from around 3% to 4% in the first half of 2022 and on par with 2020 levels. The increase in inventory slowed year-over-year rent growth to 2.7%, well off the 11.5% jump the market posted in the first quarter of 2022.

“We are effectively now reverting back to the norm,” CBRE Senior Vice President Spencer Yablon said. Yablon views the market correction as healthy.

Yablon cautioned against calling the Philadelphia apartment market oversupplied. Though the number fluctuates even among industry sources, there’s a national housing shortage of roughly 3 million to 5 million homes, he said, and the surge of new supply in Philadelphia isn't expected to last.

“There is this fear that Philly is going to have this glut of apartments and people are going to have problems filling them up at the numbers that they projected them to,” Rushdy said. “That might happen in a very, very, very short term.”

[jaysb]

Originally Posted by PHLtoNYC

The Rittenhouse Art Festival is one of the best in the nation. I'm sad I couldn't make it this year, but glad the weather is great.

It's also Pride weekend and the Ed Sheeran concert.
Busy weekend for Philadelphia.

Don't forget about Porchfest and the Roots Picnic! The past two months have had some great weekend festivals, so glad to have this component of city life back! It has been a tough couple of years.

[summersm343]

There was also a convention this weekend. Fan Expo I think it was? Big weekend for Philly indeed. The entire city was mobbed all weekend. Ya love to see it.

[PHLtoNYC]

Positive business news.

Why this 170-year-old, $2 billion company moved to Philadelphia and is rebranding
https://www.bizjournals.com/philadel...Pos=0#cxrecs_s

When Nick Grasberger embarked on a national search for a new CFO, he found Harrisburg was a hard sell. Philadelphia, however, was not.

The move to Philadelphia happened in waves finishing at the start of 2023. The company now has 60 corporate employees at its new office space that takes up a floor in Two Logan Square. Grasberger hopes to get that number closer to 80 in the near future.

Altogether, the businesses total close to $2 billion in revenue, 100% of which comes from environmentally friendly businesses.

[chimpskibot]

Originally Posted by PHLtoNYC

Good read, a shift in market conditions, but expected, and likely short term.

New apartments are flooding the Philadelphia market, slowing rampant rent increases
https://www.bizjournals.com/philadel...ncreasing.html

A perfect storm is creating a swell of new apartment inventory in Philadelphia, boosting the number of residential vacancies in the city and slowing rent increases.

In the first three months of this year, there were 1,583 new apartments delivered in the Philadelphia market, according to a CBRE report, and the average monthly rent per unit in the market was $1,682. There are also 25 projects with at least 100 units under construction in or around Center City which will deliver a combined 8,467 units when completed, per CBRE.

Last year, there were 5,853 new housing units delivered in Philadelphia, according to Center City District.

According to CBRE, the surge in apartment deliveries pushed the multifamily vacancy rate in the Philadelphia market up to 5.6% in the first quarter, up from around 3% to 4% in the first half of 2022 and on par with 2020 levels. The increase in inventory slowed year-over-year rent growth to 2.7%, well off the 11.5% jump the market posted in the first quarter of 2022.

“We are effectively now reverting back to the norm,” CBRE Senior Vice President Spencer Yablon said. Yablon views the market correction as healthy.

Yablon cautioned against calling the Philadelphia apartment market oversupplied. Though the number fluctuates even among industry sources, there’s a national housing shortage of roughly 3 million to 5 million homes, he said, and the surge of new supply in Philadelphia isn't expected to last.

“There is this fear that Philly is going to have this glut of apartments and people are going to have problems filling them up at the numbers that they projected them to,” Rushdy said. “That might happen in a very, very, very short term.”

I think a rise in the vacancy rate is good, but I doubt it will be long-term. Anecdotally my friends who were renting in the burbs just moved back to NoLibs for various reasons. They want to buy in the burbs, but inventory is so tight in the best/closest/transit accessible suburbs that I doubt they leave Philly. I think as other metros become more expensive with less to offer, Philly will remain an attractive value proposition. Lastly, in my neighborhood E.Passyunk many of the rowhomes are being subdivided and getting additions due to the rental demand. The house two doors down finished conversion from SFH to multi-family two months ago and is fully occupied!

[summersm343]

175 Units Under Construction on Busy Roxborough Block

6910-16 Ridge Ave





6830-32 Ridge Ave





6808-16 Ridge Ave





Read/view more here:
https://www.ocfrealty.com/naked-phil...borough-block/

[summersm343]

Waiting on Windows for a Seven-Story Old City Project



Old design left, new design right:



Read/view more here:
https://www.ocfrealty.com/naked-phil...-city-project/

[summersm343]

Site Cleared At 4400-14 Market Street In Spruce Hill

A recent site visit by Philly YIMBY has observed an apparent slowdown in construction prep at the site of a proposed 11-story, 11-unit mixed-use development at 4400-14 Market Street in Spruce Hill, West Philadelphia. The building, situated on the southwest corner of the intersection of South 44th and Market streets, will span 103,175 square feet and include commercial space on the ground floor along Market Street. Permits specify construction costs at $17 million.

Read/view more here:
https://phillyyimby.com/2023/05/site...ladelphia.html

[summersm343]

Framework Rising On Amy Gutmann Hall In University City

Construction work is making progress at Amy Gutmann Hall, the latest addition to the UPenn campus at 3317-33 Chestnut Street in University City, West Philadelphia. The building will house 115,954 square feet of space designated for classrooms, student collaborative space, and a data science hub. The building is being built with mass timber construction.

Read/view more here:
https://phillyyimby.com/2023/05/fram...ladelphia.html

[summersm343]

Construction Advances At 139 North 23rd Street In Logan Square

Philadelphia YIMBY’s recent site visit has observed that construction work continues to progress at a four-story, 115-unit residential development at 139 North 23rd Street in Logan Square, Center City. Designed by Solomon Cordwell Buenz and developed by the PMC Property Group (which is also specified as the contractor), the development will span 122,576 square feet and will offer residents an accessible green roof and a 42-car underground garage. The development team was permitted to include the current unit count via The green roof and mixed-income density bonuses were applied to bring the project up to its current unit count. Permits specify construction costs $35 million.

Read/view more here:
https://phillyyimby.com/2023/05/cons...nter-city.html

[summersm343]

Construction Nears Completion At 1306-14 Callowhill Street In Callowhill

A recent site visit by Philly YIMBY has observed that construction work is nearly complete at a seven-story, 181-unit rental building at 1306-14 Callowhill Street in Callowhill, Lower North Philadelphia. Designed by Bernardon, the development spans 184,679 square feet and will feature 3,208 square feet of retail as well as 51 parking spaces. Permits specify a construction cost of $18 million.

Read/view more here:
https://phillyyimby.com/2023/05/cons...ladelphia.html

[summersm343]

Permits Issued For 2456 Frankford Avenue In East Kensington

Permits have been issued for the construction of a four-story, sixteen-unit apartment building at 2456 Frankford Avenue in East Kensington, Philadelphia. The building will be constructed on a mid-block parcel between Hager Street and Letterly Street. The development will span 19,047 square feet and feature commercial space on the first floor. Permits list L Town Construction Inc as the contractor and Martha Frankford LLC as the property owner. Bright Common Architecture & Design is responsible for the designs. A construction cost of $3.2 million has been reported.

Read/view more here:
https://phillyyimby.com/2023/06/perm...ladelphia.html

[summersm343]

Façade Installation Progresses At 741 Spring Garden Street In Poplar

Philadelphia YIMBY’s recent site visit has revealed that façade installation continues to progress at a seven-story, 146-unit mixed-use building at 741 Spring Garden Street in Poplar, Lower North Philadelphia. Designed by JKRP Architects and developed by Arts + Crafts Holdings, with Camfred Construction as the contractor, the project will span 99,114 square feet, which includes retail, as well as car and bicycle parking. Permits specify a construction cost of $4.95 million.

Read/view more here:
https://phillyyimby.com/2023/06/faca...ladelphia.html

[summersm343]

Construction Advances At Vine Street Apartments In Callowhill

Philadelphia YIMBY’s recent site visit has revealed that construction work continues to advance at Vine Street Apartments, a 120-unit residential complex at 1201-09 Vine Street in Callowhill in Lower North Philadelphia. Designed by Cadre Design, the development consists of a renovation of an existing structure and a two-story vertical extension of the six-story prewar Jarvis Building at 1209 Vine Street, as well as the addition of a ground-up, eight-story extension at the northwest corner of Vine Street and North 12th Street. The development team features Meritis Group as the owner, Equinox Management as the contractor, Cornerstone Consulting as the engineer, Macintosh Engineering as the structural engineer, and GNP Design Group as the MEP engineer.

Read/view more here:
https://phillyyimby.com/2023/06/cons...allowhill.html

[summersm343]

Permits Issued For 2034 North 2nd Street In Norris Square

Permits have been issued for the construction of a six-story residential structure at 2034 North 2nd Street in Norris Square. Designed by Continuum Architecture, the building will be located on a block bound by Snyder Avenue and Philip Street, facing Mercy Street. Gotham Tower LP is the property owner. Permits list E Built Inc. as the contractor and a construction cost of $3.5 million.

The project site lot spans an area of 7,244 square feet. The development will yield a total built-up area spanning 36,804 square feet. The attached residential building will offer 40 multi-family residential units. Artist studios and six artisan industrial spaces will be offered on the first and second floors, spanning an area of 3,067 square feet. Forty dwelling units available for rent will be designed on through the second to sixth floors.

Read/view more here:
https://phillyyimby.com/2023/06/perm...ladelphia.html

[summersm343]

Permits Issued For 322-40 Race Street In Old City

Permits have been issued for the construction of a five-story, mixed-use building at 322-40 Race Street in Old City, Philadelphia. Designed by OZ Collaborative, the building will be located on the site of the Old First Reformed United Church of Christ at the southeast corner of 4th and Race Streets. The project site currently has an 18th century house classified as significant in the historic district, a pseudo-colonial house classified as non-contributing, a surface parking lot, and open space. Permits list Domus Inc. as the contractor and a construction cost of $10.5 million.

The development will span 27,500 square feet. It will include residential and service facilities for unhoused population, commercial spaces, and offices for the church. The scope of the project includes the relocation of the 18th century house to the south property line and the restoration of its commercial first-floor façade, and the demolition of the non-contributing house.

The new building will include a two-story section for church offices adjacent to the relocated house and a five-story section at the corner with commercial space on the ground floor and residential units with support spaces on the upper floors. 34 group living units will also be developed along with four accessible units.

Read/view more here:
https://phillyyimby.com/2023/06/perm...ladelphia.html

[summersm343]

Short-term rental apartments coming to the old Roxy Theater building in Philadelphia

The developer behind the project, Jason Morris of Coldwell Banker Commercial, began seeking permission for demolition from the Philadelphia Historical Commission in 2021. The former Roxy site is included in the Rittenhouse-Fitler historic district, so the developer needed permission to move forward. After some back and forth, it was granted in 2022.

The final project set for the site of the old Roxy will include the demolition of the one-story structure at 2021 Sansom to be replaced by a five-story building. The facade with the old entrance to the Roxy theater itself will be kept as an entrance to a new, larger building behind it.

Demolition of 2021 Sansom St. will take place on June 9, according to permits attached to the structure.

Morris sent The Inquirer renderings for the new building but then stopped responding to emails or phone calls.

But in a mid-May email to Jay Farrell, an architecture enthusiast who maintains a Facebook group on Philadelphia history, Morris described the project as a short-term rental building.

“We envision it as a boutique hotel mixed with an apartment building,” wrote Morris. “A sort of [Airbnb] but with fresh bleached white sheets vs. what you’d get via a home rental. Given that so many people are now working remotely and living a more mobile lifestyle, we think this concept will work.”

Read/view more here:
https://www.inquirer.com/real-estate...-20230601.html