Wednesday, June 18, 2014

Blatstein has bold, new development idea for Broad and Washington

Developer Bart Blatstein has an idea.

Like a lot of developers, ideas abound but this one has a twist. Blatstein wants to take what he did at the Piazza in Northern Liberties and roll it up into a condensed, vertical version on a site as big as a block at South Broad Street and Washington Avenue in South Philadelphia.

“This is not your standard building,” said Blatstein, who runs Tower Investments Inc. “I want to take everything I’ve done in Northern Liberties that is spread over several blocks and put it in one place. It’s a self-contained community where you will never want to leave. Every amenity known to mankind is here. For those of us with [attention deficit disorder], this will be the perfect place.”

A rough sketch that Blatstein made of his plan (see photo) detailed all the services he wants to put into the project: a dog park, a pool, a running park, a private garden, fire pits, grilling areas, outdoor movies, and tennis courts that convert into volleyball pits. All of the outdoor activities would take place on the roof in an area roughly the same size as the Piazza. Aside from retail and restaurants, the interior would offer a game and a gaming room, a rock wall, basketball court, tech and bicycle shop, doggy day care and then some.

All of this would be housed in a 30-story building that would total a tad less than 1 million square feet. It would have 800 rental residential units, which would create a critical mass to afford all of those amenities, Blatstein said.

Blatstein decline to disclose how much the project might cost but those familiar with these type of projects estimate it could come in at more than $150 million.

It’s a different project than what Blatstein had initially envisioned for the site, which has gone undeveloped for decades though some developers have taken a stab at it only to walk away.

About six months ago, Blatstein put the 4.5-acre property under contract for an amount he also declined to divulge. Hudson Capital controls it. Blatstein initially thought a multi-tenanted retail center totaling more than 400,000 square feet would be the best use for the site. It would have had a movie theater, grocery store and other retailers and fill a void for Center City’s burgeoning residential population, he said. As it is now, residents can venture to Oregon Avenue or Delaware Avenue to pick up necessities.

“It’s very under retailed and it takes time to get crosstown,” Blatstein said.

As those plans marinated and Blatstein took them to neighborhood group, it became apparent to him the property’s potential lied in marrying that general retail concept with a residential tower that catered to just about every whim a renter could have as well as serve a wider downtown population.

While Blatstein is trying to replicate aspects of the Piazza — its sense of community, destination and place making — the vision for this project may well be easier to execute and take less time.

For one, the Avenue of the Arts — as South Broad is referred to — has become an established residential and entertainment district compared with Northern Liberties 15 years ago, which was essentially a no-man’s land.

“Carl [Dranoff] has done a great job creating South Broad as a residential destination and I’m piggy-backing on Carl and all of the other developers who have done development around there,” Blatstein said. “It’s a lot easier to do this rather than 2nd and Girard. That was very, very challenging.”

There, Blatstein assembled more than 100 properties, some through eminent domain, demolished about a million square feet and put in all of the infrastructure to lay the foundation for the Piazza and surrounding development. In contrast, Blatstein is dealing with one very large parcel on South Broad in a community that has been cautious but generally receptive to his initial retail plans. That’s not to say this is an automatic go. Blatstein is still doing an analysis of this revised plan and still has to present this new idea of putting up a 30-story tower to neighborhood residents and other city groups.

For Blatstein, who is also working on landing a casino license at a project called the Provence on North Broad Street, a bold mixed-use development at Broad and Washington is a no-brainer. There are 10,000 workers down South Broad at the Navy Yard are potential residents. Young people continue to chose living in urban areas and want a menu of amenities to at their doorstep, something the developer as well as others constructing new apartment projects, is trying to provide. Why some believe the multifamily market could start to overheat, Blatstein shrugs it off.

“That may be the case," he said, "if you’re going to build the same project everyone else is building but this is a stone-cold category killer.”

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