The agency has partnered
with CBRE to take bids on 12 - acre University City Property
(PHILADELPHIA- October 8, 2019) - The
Philadelphia Housing Authority (PHA) is selling a portion of one of
the agency's older sites with plans to use the sales proceeds
toward rebuilding the remaining part of the site. The West Park
Apartments, built in 1964, sit on a nearly 12-acre, increasingly
valuable parcel on the perimeter of University City.
"Because we have open space on the site we will be able to
replace every one of the outdated and deteriorating high-rise
apartments with modern homes that we believe our residents will be
proud of and that will enhance the entire neighborhood," said PHA
President and CEO Kelvin A. Jeremiah. "We think taking advantage of
the property's rising value to help meet our need for affordable
housing is an ideal solution."
There are currently three buildings on site with a total of 327
apartments. Making the necessary electrical, plumbing, HVAC,
elevator, masonry and other repairs would cost upwards of $50
million. Those repairs would make the buildings serviceable but
would not bring them up to modern standards. In addition, in
keeping with older style public housing, the site is separated from
the surrounding neighborhood, with only one vehicle entrance onto
the property.
Under PHA's redevelopment plan one high-rise will remain
standing and be completely rehabilitated as senior housing. The
other two towers will be sold and replaced on another section of
the property by an equal number of townhomes and stacked apartments
(flats). The land being sold - covering an area between 44th and
45th Streets just north of Market Street - covers the eastern third
of the property.
Andrea Foster, who has been the site's resident council
president since 1987, said she and most residents support the plan.
"The buildings are deteriorating and the money they would have to
sink into these buildings could be used to build new homes," she
said. "There will be some inconvenience for families having to move
and then return but it will be worth the trouble to come back to
new homes."
As PHA has done at other rebuilt sites, the agency would
reconnect the site to the city's street grid so that it would no
longer be isolated.
PHA has hired CBRE, a commercial real estate services and
investment firm and CVA Commercial Group, to market the property.
The company's sales materials note that the site's neighbors
include the University of Pennsylvania and Drexel University,
suggesting potential uses such as student housing, athletic
dormitories, multi-family apartments and senior housing.
"The explosive growth of University City to the east has been
rapidly progressing in a western trajectory, steadily marching
toward this property," said Vincent J. Jolly, Jr., CVA's founder
and CEO. "To the west, the redevelopment of the adjacent Provident
Mutual Insurance Building at 4601 Market further illustrates the
exciting investment and momentum in the community. Add to that all
the growth activity among Penn, Drexel and University City Science
Center and you can see why West Park represents an ideal
development opportunity. "
"It is excellent that PHA is tapping into the energy of the very
hot University City and West Philadelphia real estate market for
the benefit of West Park residents," said City Councilwoman Jannie
L. Blackwell, in whose district the property falls.
"Congratulations to Kelvin Jeremiah and the PHA staff for devising
an innovative plan to transform the property."
The property is located in a Qualified Opportunity Zone, a
designation that includes tax incentives to encourage long-term
investments in low-income communities.
"You don't often get a chance to design a deal that works so
well for all concerned," the PHA's Jeremiah said. "We have found a
way in this proposal to serve the needs of residents of public
housing and the broader community at the same time."