$87M Former University Of The Arts Campus Hits The Market
Nine buildings that once housed the University of the Arts are up for grabs in what marketers are calling “a generational redevelopment opportunity” after the school filed for bankruptcy in September.
The former University of the Arts campus in Philadelphia's Center City was listed for sale by JLL on Monday.
The 760K SF former campus is mostly located on and around South Broad Street in Center City’s Avenue of the Arts District.
The buildings, which can be bought as a package or individually, offer flexible zoning, which means they could become anything from retail and multifamily to a data center or healthcare facility, according to a release from JLL, the company handling the sale.
“Almost all of the properties offer mixed-use zoning,” said JLL’s Senior Managing Director Fran Coyne. “Many will likely become apartments, but the campus offers an array of opportunities.”
Five of the buildings have a historic designation that would make potential buyers eligible for special tax credits.
JLL was appointed to sell the UArts campus by a U.S. Bankruptcy Court in Delaware on Friday, a spokesperson for the company told Bisnow. The properties have a collective value of $87M, according to court filings obtained by the Philadelphia Business Journal.
The portfolio offers “a generational opportunity to reshape the heart of Philadelphia’s [central business district],” said Senior Managing Director Jim Galbally, who is managing the sale alongside Coyne, Senior Director Samantha Kupersmith and Managing Director Brett Segal.
UArts’ Chapter 7 bankruptcy filing in September came after the school shut down suddenly in June. The unexpected move confused and angered students and staff. There were discussions about Temple University taking over the school, but the larger institution eventually passed on the deal, Higher Ed Dive reported.
Some worry the buildings could sit empty for a lengthy period given that twice as much office space sits empty in Center City as in 2019 and deals have been hard to come by.
“Obviously, a major higher education institution in Center City, which is what UArts is, becoming empty or vacant or taking a long time to come to some kind of resolution about what might happen to the assets in the property, all of that is going to hinder Center City's recovery,” state Rep. Ben Waxman, whose district includes the campus, told Bisnow this summer.
But UArts buildings have sold to developers in recent memory.
Dranoff Properties bought a lot at 313 S. Broad St. from the school for $6.4M in 2014. It eventually became part of the company’s high-end Arthaus condominiums.
MM Partners spent $10.7M to buy 1500 Pine St. from UArts last year with plans to convert the building into apartments.
