Girard Block to be leased to developer - PhillyBlog

Jayfar · #1 (**permalink**) 10-17-2006, 07:49 AM

Lease pending for a hot block
For $90 million, group rents the Girard parcel for 75 years.

http://www.philly.com/mld/inquirer/15775785.htm

Quote:

By Henry J. Holcomb
Inquirer Staff Writer
A $90 million deal will be signed today that sets the stage for a billion-dollar redevelopment of the Girard block - long considered the linchpin for progress on East Market Street - executives on both sides said yesterday.

The 4.35-acre block, bounded by Market, Chestnut, 11th and 12th Streets, will continue to be owned by the estate of Stephen Girard, the wealthiest man in the United States when he died in 1831.

But if the deal goes through as planned, Trinity Capital Advisors L.L.C., of Conshohocken, will pay $90 million for a 75-year lease and the right to develop and operate the property. The transaction includes a 75-year renewal option, at a price to be determined at the time by an arbitrator.

The price exceeds the $75 million that estate managers expected to get when they issued a call for proposals in June.

The site will be developed in stages over the next five years, said Ken Kearns, the Trinity Capital vice president in charge of the project. "We're not swinging any hammers right away," he said.

[SNIP]

lovephilly · #2 (**permalink**) 10-17-2006, 08:23 AM

great news- i hope they start swinging some hammers soon.

krapug1 · #3 (**permalink**) 10-17-2006, 08:28 AM

The full text is on the www.phillynews.com site.

This all SOUNDS good, but I would prefer that speculation not be part of these "news" stories.

Yes, if Boscov's leased part of the Strawbridge building, and a new Target was built on the site of the "Disney Hole", that would be a great step forward for Market East. However these hoped for developments have been bantered about for some time now, and are just that, speculation.

PREIT has yet to announce ANY tennants for the Strawbridge space, other than SAYING interest is high, enough already!

Ken

Jayfar · #4 (**permalink**) 10-17-2006, 08:58 AM

Quote:

Originally Posted by krapug1

The full text is on the www.phillynews.com site.

...or cut to the chase and use the direct link to the full text article that I had cleverly included in my original post. %-)

http://www.philly.com/mld/inquirer/15775785.htm

thunda · #5 (**permalink**) 10-17-2006, 10:24 AM

This is fascinating news. The buildings on that block, especially the beastly monstrosities fronting Market and Chestnut, should be firebombed while assembled crowds cheer. Is there any inkling of what might actually be built there? I would imagine that it would very mixed use, but will those 4 million potential square feet be tilted towards office, hotel, residential, or what?

eldondre · #6 (**permalink**) 10-17-2006, 10:31 AM

Quote:

Originally Posted by thunda

This is fascinating news. The buildings on that block, especially the beastly monstrosities fronting Market and Chestnut, should be firebombed while assembled crowds cheer. Is there any inkling of what might actually be built there? I would imagine that it would very mixed use, but will those 4 million potential square feet be tilted towards office, hotel, residential, or what?

I like both office buildongs on 11th and 12th.

five apples · #7 (**permalink**) 10-17-2006, 10:37 AM

I wonder if they could even do condos if the land is leased.

Jayfar · #8 (**permalink**) 10-17-2006, 10:48 AM

Quote:

Originally Posted by aubin

I wonder if they could even do condos if the land is leased.

Ron Rubin raises that point in the article as why his company didn't go for it:

Quote:

... Ronald Rubin, chief executive officer of Pennsylvania Real Estate Investment Trust. "We've been interested in it for a long time. But it doesn't work for us on a land lease. It is a little more difficult to do multifamily, especially condos, when you don't have fee title."

War Rabbit · #9 (**permalink**) 10-17-2006, 11:06 AM

Quote:

Originally Posted by Jayfar

Ron Rubin raises that point in the article as why his company didn't go for it: "It just doesn't work for us on a land lease."

Thank God for small favors. Just what we needed PREIT having control of the southside of Market Street as well. That gives me the chills just thinking about it. Instead of worrying about inflicting more damage upon Center City concentrate on upgrading the Gallery.

PREIT should do Philadelphia a favor, start from scratch and knock that White Elephant down, then they'll have plenty of room for their own pet project.

Notcom · #10 (**permalink**) 10-17-2006, 11:14 AM

Quote:

Originally Posted by krapug1

The full text is on the www.phillynews.com site.

This all SOUNDS good, but I would prefer that speculation not be part of these "news" stories.

AMEN......let's leave that to Phillyblog.

(Those not up-to-speed on the history of the site, can check in here:

http://www.phillyblog.com/philly/sho...t=24914&page=3