This Week's Philadelphia Deal Sheet
Iron Stone Real Estate Partners is ready to turn the page at one former part of the Hahnemann University Hospital campus that infamously closed in 2019 after a private equity takeover.
Iron Stone has completed a speculative redevelopment and two-story overbuild at 1421 Race St., steps away from the former main hospital building at Hahnemann, which the developer has dubbed Race Street Labs.
The 13-story, 180K SF building is entirely vacant, with a combination of speculative lab suites and pre-existing labs for disciplines including chemistry, microbiology and live animal testing. Lab floors at the building range between 8,400 SF and 13K SF.
Cushman & Wakefield Executive Managing Director Paul Garvey and Director Brian Young are marketing the property for leasing on behalf of Iron Stone, which purchased 1421 Race St. as part of an 800K SF acquisition from an affiliate of Harrison Street Real Estate Capital in 2021.
SALES
Haverford Square Properties sold a seven-building, 36-unit portfolio of small rental buildings in Mantua, just north of the heart of University City's life sciences corridor, for $6.75M to a new-to-market investor, 2X2 Capital. Haverford Square raised the cash as it prepares to develop a 140-unit apartment building elsewhere in the neighborhood.
Scope Commercial Real Estate Vice President Saam Tashayyod represented Haverford Square in the transaction, Scope Director Fahd Malik procured 2X2 as a buyer, and Scope Senior Director Edward Brown arranged a five-year loan to finance 2X2's acquisition at a fixed interest rate of 5.93%.
The buildings, all in a row from 3918 to 3930 Haverford Ave., were constructed at different points, and some still have years left on their original 10-year tax abatement.
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Rockwell Development Group purchased a four-story, 34K SF office building in the downtown area of Phoenixville in Chester County for $4.1M from Design Facilities Associates, the Philadelphia Business Journal reports. Rockwell plans to convert the property into a 24-unit apartment building with a 5,400 SF ground-floor commercial space.
Consumer Bank occupied the building at 99 Bridge St. from when it was built in 2006 until last year, when it moved to Malvern, PBJ reports. Its lease expired in May, clearing the way for Rockwell's acquisition.
LEASING
Lab equipment manufacturer Agilent agreed to lease 12K SF of lab-based manufacturing space adjacent to a facility it already operates in Newport, Delaware, as part of a $22M investment. Most of the cost will go toward building out nearly 10K SF as new lab space, with the remaining 2K SF split between warehousing and distribution uses and office space.
Agilent was awarded a $693K grant from the Delaware Strategic Fund, which will be paid when the company hits hiring goals at the New Castle County site.
CONSTRUCTION
First Industrial Realty Trust commenced construction on a 358K SF distribution center within the First State Crossing commercial campus in Claymont, Delaware. The facility is expected to cost $60.5M to build and be completed in the first quarter of next year, with CBRE tasked with leasing the speculative project.
The Chicago-based developer acquired a 28-acre tract from St. Louis-based Commercial Development Co. in January. CDC purchased a 425-acre former steel mill property in 2015 with the goal of creating a $1B mixed-use community.
Other than the in-progress Claymont Station, a new $70M home for the New Castle County township's Amtrak and SEPTA regional rail stop, First Industrial's development is the first to break ground at First State Crossing.
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National Real Estate Advisors and Kushner Real Estate Group announced the topping out of their 13-story, 360-unit multifamily tower at 200 Spring Garden St., which the JV has dubbed The Noble. With the first residential units targeting completion in early 2024, pre-leasing is scheduled to launch in December.
The ground floor at the Noble will be occupied by a 17K SF flagship location for local chain City Fitness, which launched its first location in the building that once occupied the lot at the southern edge of Northern Liberties. A second corner retail space has yet to be leased.
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The Galman Group began moving residents into The Flats at Jenkintown, a 104-unit multifamily development at 1300 Greenwood Ave. in the Montgomery County suburb's Pavilion Town Center. Galman broke ground on the 150K SF building in late 2021 and is completing some interior and exterior work as move-ins are underway.
