PHILLY: Conversions Boost Micro Trend
The national trend towards micro apartments isn't leaving Philly out. The Avenir—a former Class-B office building turned 180 apartment units—will be the newest benchmark in efficiency. (Until we all just live in stackable pods.) Alterra Property managing partner Leo Addimando says while they'll be marketed as luxury rentals, they include an attractive entry price—half the units will be priced at $1,500 or less. He says Millennials are willing to occupy smaller spaces when the right amenities are provided (in this case, a doorman, a fitness center, media room, conference rooms, and a lounge). Half the Avenir's units will be one-bedroom units from 525 SF to 650 SF, and some studios will be as small as 320 SF. (You'll need to make some hard decisions about which posters to keep.)
The conversion (above) brings 150k SF of Class-B space off of Philly's office market. But with job numbers starting to grow, Leo thinks that straight residential conversions in Center City have passed a tipping point. That means thinking creatively about properties to adapt—and not just downtown. In traditional-homeowner neighborhoods like South Philly, school buildings do the trick; it was the old Annunciation School where Alterra just opened the 45-unit Wharton Street Lofts. These conversions are convenient, he says, as classroom sizes usually correspond to apartments and a gym or auditorium can get a new life as a lounge or common area. Wharton Street Lofts also feature some literally old-school elements, among them teacher storage cabinets reused as closets. (Just watch out for the ghost of the lunch lady.)
