Tuesday, April 22, 2014

Ten developers vie for 862-acre Willow Grove air base

Ten real estate firms have signaled they are interested in redeveloping more than 800 acres at the former Naval air base in Willow Grove, Pa.

The companies range from residential developers to those that do mixed-use projects. Some of the developers are from the region while others are from outside of the Philadelphia area.

The competition will be stiff. It’s seldom a property comprised of several hundred acres comes available for development in a mature suburb just outside of a major metropolitan area.

The companies that responded to a request for qualifications from the Horsham Land Redevelopment Authority include:

American Real Estate Development of Souderton, Pa. The company was established by a former executive of TH Properties, a residential developer that went through Chapter 11 bankruptcy during the recession.

A group comprised of Avalon Bay Communities Inc., an apartment developer from Arlington, Va., Pulte Group Inc., a home builder from Bloomfield Hills, Mich., and Paramount Realty, a Lakewood, N.J., retail developer.

Catellus Development Corp., a mixed-use developer from Oakland, Calif.

Hankin Group, a mixed-use developer from Exton, Pa., better known for Eagleview Corporate Center in Exton that also has a planned mixed-use community.

LCOR, a mixed-use developer from Berwyn, Pa.

Lennar Corp., a national home builder based in Miami.

NVR Inc., a Reston, Va., home builder.

O’Neil Properties Group, a King of Prussia, Pa., developer that also does mixed-use development. Some projects the company has done locally are Uptown Worthington in Malvern, Pa., and several apartment complexes in Conshohocken, Pa., and along the Main Line, and office buildings throughout the suburbs.

Realen Properties, a Berwyn, Pa., developer that has dabbled in mixed-use developments in the suburbs and in Center City. Realen is currently involved with the Village at Valley Forge, a mixed-use project in King of Prussia where a Wegman’s is located.

Toll Brothers Inc., a residential home builder based in Horsham. The company does single-family and multifamily development.

“We were hoping for three to five responses,” said Tom Ames, deputy director of the Horsham Land Redevelopment Authority, or HLRA. “We got 10.”

Ames and his group will review the developers' credentials, interview them, and then create a shortlist of companies that will then be asked to draw up a plan for what they would construct on the 862-acre site. From that, a master developer will be picked.

The HLRA, with community input, has come up with a redevelopment proposal that would incorporate a town center, residential, office, retail, recreational and educational uses. The master developer would execute on that vision.

“This is going to take some time,” Ames said about the selection process. “We want to make sure we make a good decision.”

This is occurring at the same time the redevelopment authority is negotiating to acquire the former air base from the Navy. Once HLRA gets title to the ground, it will then sell the property to the master developer. The transaction would involve the redevelopment authority to use proceeds received from the sale of the land to a private developer to pay for buying the property from the Navy.

Ames is projecting the redevelopment authority will have identified a master developer by the end of summer.

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