Category market east

Market East “is building this,” and Market East “is improving that.” Wait … Market West?

Vintage shot of West Market Street, Circa 1925 | Courtesy of PlanPhilly.com

 

That’s right, you heard me correctly. Market West is becoming a hot topic within Philadelphia’s development community.

But it’s difficult to say what it could/will look like in the near’ish future.

Over on Market East, projects have already been approved, money is in place, and shovels are in the ground. In other words, there is already a level of certainty that change is happening, and that it’s all positive development (e.g. East Market, Fashion Outlets of Philadelphia, 11th/12th + Chestnut, etc). Plus, we pretty much know what these projects are going to look like when they’re completed; which is comforting.

As for Market West, first of all, who the h*ll even refers to Market Street between City Hall and 30th Street Station as Market West? Well, I guess I just did … and others are too.

Some call it “The Business District,” some call it “Downtown,” and some call it “Rittenhouse” or “Logan Square.” Personally, I’ve always just called it Center City, but today Center City has been split into so many specific pieces/parts due to popular neighborhood names (e.g. Fitler Square, Midtown Village, etc), additions to what is now “considered” Center City (e.g. Fairmount, Graduate Hospital, etc), and the complete separate identity of the ever-growing eds/meds capital of Philadelphia, University City.

So needless to say, you have to be careful with your Philadelphia-neighborhood-based assumptions these days. Otherwise, someone may try to bash you with their Internet muscles.

Over on West Market Street, a big portion of the street frontage has recently become a hot spot for large/proven developers (i.e. those who have a successful track record in Philadelphia, and financial resources to make something happen), who are buying up pieces of real estate as if it were a game of Monopoly: Hey, I just bought my first “color-group” from “the bank,” and I want to start building “houses” and “hotels” (ha, what a great game).

But, why? What’s the draw? What’s the play?

Well for starters, a lot of it was owned by one guy/group/company: Richard Basciano. That name may sound familiar, as it was one his properties that collapsed unexpectedly at 22nd & Market in June 2013. My condolences to anyone/everyone who had a loved one there that day.

Also, Richard has been “speculating” on that long stretch of Philadelphia road for decades, which means he bought low and is now selling high. If you have not read recently, 2015 is a great time to be selling large pieces of Center City real estate.

Finally, large parcels are very hard to come by in Center City these days. Not only for a reasonable price, but just to buy in general. Now that Richard is a willing seller, developers are starting to see this as a great opportunity to close the gap between City Hall and University City. Connecting the two with large anchor projects, which could also spur a building frenzy for smaller projects.

Welp, there you have it. My professional take on one of Philadelphia’s next big development zones. More blog posts will follow, as soon as more news comes out.

Why so much buzz lately about Market East?

PREIT’s rendering of the new Gallery at Market East

The Market East section of Philadelphia that is, not the regional transportation hub.

Maybe it’s just me, but almost everywhere I look in the local media these days, people are buzzing about Market East.

Some of those discussion topics, over the last year or so:

Girard Square

The Gallery

Market8 Casino

Times Square-esque Digital Signage

Everyone is talking, and for good reason. Out of all the original Center City neighborhoods (Logan Square/Circle, Rittenhouse Square, Washington Square, Society Hill, and Old City), Market East (or Center City East) is really the only one left with copious amounts of potential.

All of the others have already been redeveloped, or are in the process of.

The reason I found this story so blog-worthy, was because of that aforementioned potential. Center City has become so prominent/noticeable in Philadelphia’s comeback story, that it has literally spawned an entire army of coveted neighborhoods.

Graduate Hospital

Passyunk Square + East Passyunk

Newbold

Pennsport

Fairmount

Francisville

Northern Liberties

Fishtown

The #1 reason why these varying and unique neighborhoods have caught fire within the local real estate market, is because of Center City’s success (and University City’s too, if you want to get technical).

Original Center City has become expensive and is short on supply, which is why the spillover demand has landed in these neighborhoods. In reality, there was really no where else to go but to follow the concentric circles.

Now, it’s not just because of CC + UC that Philadelphia has changed so much over the last 20+ years.

Manayunk

Roxborough

East Falls

Chestnut Hill

Mount Airy

Kensington

Templetown

As you can now see, the demand is spreading all over town, into historic neighborhoods, and for different reasons. Main Streets, universities, small businesses, networking groups, night markets, food trucks, and everything in between.

Market East may currently be the trendiest name in town, but it sure is not the last.

What has long been in store for Market East, is now coming to fruition

This image lays out the entire plan.

 
My last post on PUL.com talked about Paul Levy and some of the projects he has worked on over the years to help move Center City Philadelphia forward.

One such project I mentioned, “The Road to Dilworth Plaza Park,” is a solid anchor for Market East, from City Hall all the way down to Old City. Not to mention that it will also serve as an anchor for the recent activity on Market West, but let’s keep our focus toward the east for now.

Well, good things are being talked about in the news.

If you have ever taken SEPTA regional rail to Market East, walked through the sets of doors to the escalators, taken the escalators up to street level, and walked through the additional sets of doors onto Market St, you have probably noticed an outdated, unsuccessful string of retail shops directly across the street.

This retail strip is known locally as Girard Square.

To be honest, these stores are pretty weak for where they sit in proximity to both Midtown Village and Old City. Not even considering the fact that they’re right across the street from one of Philadelphia’s busiest public transportation hubs.

If you shop at Girard Square, please do not take offense. I just think Philadelphia can do better, and they are about to make good on that statement.

Come summertime, Girard Square will be no more. In its place will be an updated, modern, mixed-use, shiny new development that will include new shops, new restaurants, and new residences, along with large digital marketing displays outside (now allowed along Market East, per a new zoning ordinance). Finally, Market East is starting to realize it’s potential, as I have blogged about this before (over 2 years ago).

Here are some of the details, per the article from PBJ that inspired this post:

“The 4.3-acre site takes up an entire city block bound by Market, Chestnut, 11th, and 12th streets. The building fronting Market St will be taken down, and the first phase will rise in its place. It will total $230M and encompass 650,000 square feet.

“That initial phase will include constructing a 17-story tower that will have the first two levels dedicated to 160,000 sq ft of retail space, and the remainder an apartment structure with 322 units. It will also involve renovating the 200,000 sq ft family court building and preparing that for retail space on the street level and office space above.”

Right on, Market East!

Not only do I like that the developers are phasing this project properly (supply and demand), but the most visible part (remember that picture I just painted for you in Paragraph 4, walking out of Market East station) is first in line for redevelopment.

All in all, the project is shooting for 2M total sq ft of brand-new, mixed-use space, and a total investment of $500M.

Not bad, not bad at all.