www.marejournal.com P ennsylvania S potlight E astern PA To develop 709 Chestnut Street in Philadelphia Mack-Cali and its Roseland subsidiary announce agreement with Parkway Corporation P ing as a dynamic cultural destination in a previously underutilized corridor.” M id A tlantic Real Estate Journal — Pennsylvania — April 10 - 23, 2015 — 3C
HILADELPHIA, PA — Mack-Cali and its Roseland subsidiary announced an agreement in principle with Parkway Cor- poration to form a joint ven- ture partnership to develop a luxury multi-family communi- ty at 709 Chestnut St. in Phila- delphia. The development, currently in the planning and permitting stages, is slated to commence construction by the end of 2015. Located in the heart of Cen- ter City, preliminary plans for 709 Chestnut St. feature 32 stories consisting of approxi- mately 300 luxury apartments and over 11,000 s/f of indoor and outdoor amenity space. “As we continue to expand our footprint in the Philadel- phia market, we’re excited to have the opportunity to part- ner with Parkway—a leader in parking management and real estate development—for this exciting initiative at 709 Chestnut St.,” said Mitchell NORTHEASTERN PA — An affiliate of Endurance Real Estate Group, LLC (“Endurance”) announceD the acquisition of a three building bulk warehouse/ distribution portfolio totaling 544,640 s/f in Northeastern Pennsylvania. The portfolio includes 7 and 15 Alberigi Dr. in Jessup Borough, consisting of 166,500 s/f and 129,500 s/f, respectively, and a 248,640 s/f building at 32 S. Preston Dr. in Wilkes-Barre. The portfolio is situated in the Northeast PA submarket of the I-81/I-78 Distribution Corridor, offering users immediate proximity to I-81 and close proximity to I-476 (PA Turnpike), I-80, I-84 and I-380. The portfolio is currently 50% occupied. The buildings were con- structed in the late 2000’s and feature class A warehouse/dis- tribution specifications includ- ing 30’ clear ceiling heights, ESFR sprinkler systems, and ample (and expandable) load-
ing the third fully automated garage project that Parkway Corporation has recently es- tablished in Philadelphia. The company also operates the city’s first fully automated ga- rage at 1706 Rittenhouse Sq. and provided the land for the automated garage project at 500 Walnut St., both of which have been praised by city and civic organizations. Mack-Cali and Roseland are currently pursuing opportuni- ties in Philadelphia and the surrounding areas involving both ground-up development and adaptive reuse. With its partner Keystone Property Group , repositioning plans were announced for The Cur- tis, just around the corner from 709 Chestnut St. Roseland will lead the residential redevelop- ment of the iconic Center City building, which will feature new luxury apartments, while Keystone will revitalize the building’s existing office space and common areas. n assets combined with a fresh approach to property leasing and management (with suites in move-in condition) we feel confident that we can step in and stabilize the portfolio quickly,” added Cohen. The Endurance team has considerable ownership expe- rience in the 1-81/I-78 Distri- bution Corridor overall and the Northeast PA submarket specifically, with just under 2 MSF combined of exist- ing warehouse/distribution product and entitled FAR in the Northeast PA region in its portfolio inclusive of the subject portfolio. In nearby Pittston, PA, Endurance’s re- development project at the In- terstate Distribution Center in Pittston, PA is underway with both demolition of the former 1 MSF building and sitework in progress to deliver a mass- graded site in late spring 2015 capable of accommodating 1.2 million s/f out of the fully en- titled 1,506,000 s/f footprint. n
The project marks the newest development on the east end of Chestnut St. Known as the Market St. East district, the area has experienced a recent flurry of activity and is in the midst of a rapid transformation. The influx of businesses and residents is due in large part to recent City initiatives, including a targeted reduc- tion in business taxes and a revamped zoning structure that allows for a dynamic mix of commercial and resi- dential uses in the neighbor- hood. The area has proven to be particularly attractive for millennials and empty nest- ers, drawn to its hyper-acces- sible location and emerging cultural livelihood. Plans for 709 Chestnut St. also include the development of an automated 125-car parking garage onsite, mark-
709 Chestnut St.
Hersh , president and chief executive officer of Mack-Cali. “This community will serve as
a cornerstone of the burgeoning Market Street East neighbor- hood, which is quickly emerg-
Affiliate of Endurance Real Estate Group, LLC acquires I-81/NEPA bulk-industrial portfolio totaling 544,640 s/f
Distribution portfolio in Northeastern Pennsylvania
ing capacity with full dock packages. 7 Alberigi Dr. is fully leased to two tenants including BAE Systems in the majority of the square footage. 15 Alberigi Dr. is fully avail- able and easily demisable, having been designed with multiple storefront entrances to efficiently accommodate tenant suites ranging from 32,500 s/f up to a full-building presence. 32 S. Preston Dr. offers a 124,080 s/f contigu- ous block of available space which is demisable down to
approximately 40,000 s/f units, with the other 50% of the build- ing occupied by Rehrig Penn Logistics. Planned immediate improvements to 15 Alberigi Dr. and the existing vacancy at 32 S. Preston Dr. include an upgrade of the warehouse light- ing to T5 fixtures and the con- struction of flexibly designed shell office space and restrooms providing an easily expandable and customizable template for new tenants. “This deal represented a rare opportunity to acquire
class A quality assets below replacement cost in a tight- ening submarket in one of the strongest warehouse/ distribution corridors in the country” said Benjamin Cohen , president of Endur- ance. “Two of the buildings suffered from persistent vacancy largely due to the timeframe in which they were delivered in the 2006- 2008 time frame, though with leasing market condi- tions tightening and the inherent appeal of these
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