SEPTA Buys $11.25M Warehouse In Northeast Philly Amid Swirling Set Of Crises
SEPTA is facing a looming funding crisis amid rumblings of a potential strike, but that doesn’t mean the organization isn’t in a position to purchase new real estate.
The transit agency just bought a 136K SF warehouse at 10551 Decatur Road in Northeast Philadelphia for $11.25M, the Philadelphia Business Journal reported. SEPTA had been renting 118K SF of the warehouse from previous owner Drummond Decatur and State Properties LLC since 2019. The building, constructed in 1995, will continue to be used as a supply chain warehouse.
Drummond Decatur and State Properties had owned the roughly 6-acre property since 2012, paying $17.1M, according to city records. The current assessed value is $10.2M.
The purchase was finalized amid a rough patch for SEPTA.
CEO and General Manager Leslie Richards announced her resignation last month. Her five-year tenure will officially end on Nov. 29, and a national search to find a permanent replacement has been launched. Chief Operating Officer Scott Sauer will serve as interim general manager.
SEPTA is also facing a $240M funding shortfall, which could soon lead to service cuts and fare hikes, The Philadelphia Inquirer reported. State lawmakers were unable to come to an agreement on a stopgap funding proposal before the end of last month’s legislative session.
Transit Workers Union Local 234, which represents about 5,000 of SEPTA’s vehicle operators, mechanics, cashiers, maintenance workers and custodians, could go on strike as soon as Friday, the day after their contract is set to expire.
Members are particularly concerned about worker safety. Although crime is down this year, many SEPTA employees have been rattled by high-profile assaults that have continued to occur across the system.
TWU’s messaging about the potential strike has also touched on wages and healthcare benefits.
“SEPTA is insisting that any raise we get must be paid with cost savings to our health care plan,” a newsletter from the union published late last month says. “When SEPTA gave all its top managers 20% raises last year it did not ask for them to pay for their own raises by accepting inferior health insurance.”
Richards’ tenure began just two months before the pandemic-fueled shutdown, which led to a massive dip in ridership for SEPTA. While the system has recovered to a degree, ridership in September was still just 74% of 2019 levels, according to SEPTA’s most recent report on the topic.
September foot traffic in Center City also remained at just 81% of 2019 levels, according to data from the Center City District. That matches the district’s office occupancy rate of 81%, down from a peak of 91% in 2018.
Low SEPTA ridership is part of the office crisis in Center City. A loan on the building at 401 Market St. near the Independence Mall went to special servicing last month after the property's primary tenant, Wells Fargo, chose not to renew its lease, Commercial Observer reported.
Officials and developers hope a new 76ers arena proposed for the East Market neighborhood will help revitalize Center City. If it comes to fruition, the facility will sit on top of SEPTA’s Jefferson Station, a major hub for the agency’s metro and commuter rail lines.
Developers aim to have 40% of fans take public transit to games. That could only happen if SEPTA fares are included in the price of a ticket, according to city-commissioned studies.
