Please enjoy this week’s edition of Capstone Law’s Philadelphia Real Estate Trends:
- Is Philadelphia’s red-hot multi-family rental market finally cooling? Less than two months after Equus Capital Partners scrapped plans to build a 300-unit apartment complex in Conshohocken, Dranoff Properties shifted gears on its 22-story One Riverside project in Fitler Square. Dranoff will convert what was originally conceived as luxury apartment rentals into 88 residential condominiums ranging in price from $700,000 to $4,000,000. Dranoff made this decision after determining that the Philadelphia marketplace better supported more condominiums than rental apartments.
- National co-working companies continue to target Philadelphia. This summer, Miami-based Pipeline announced that it would develop 21,000 square feet of co-working space in the Graham Building at 15th and Chestnut Streets to compete with local groups such as Benjamin’s Desk, IndyHall and City CoHo. On the heels of Pipeline’s announcement, Chicago-based Industrious now plans to open TWO new co-working spaces in Philadelphia with one slated for two floors of 230 South Broad Street and the other ticketed for an additional 20,000 square feet of space in Old City. Can Philadelphia attract enough startups and other entrepreneurs to fill all of this new inventory?
- Keystone Property Group commits $200 million to construct a mixed-use transit oriented development project in Conshohocken. The project includes a 200-room hotel, a 300,000 square foot office tower, and a brewpub centered around a public plaza/ area gathering space including retail space. The developers intend to attract Millennials who tend to prefer walkable/energetic communities to the sprawl typical of suburban areas. Keystone hopes to break ground next spring and complete the project in 2-3 years.