Parking lot where 'Fergie Tower' was proposed sold to Goldenberg Group

Goldenberg Group has purchased 1213-1219 Walnut St. in Center City and will reportedly move forward with a mixed-use project that many have been referring to by its informal name — "Fergie Tower."

Goldenberg of Blue Bell, Pa., paid $8.2 million for what is now a surface parking lot. The property was sold by U3 Ventures, a Philadelphia real estate firm that has owned the parcel since around 2007 and took it through a long-drawn out approval process.

Goldenberg is expected to construct a 26-story apartment building that will have about 300 apartments and retail space at the ground level. Goldenberg is reportedly doing the $100 million-plus project in partnership with Hines, a Houston-based development company.

When U3 Ventures first proposed constructing a project on the site, it wanted to build a 30-story building that had 152 hotel rooms, 299 apartments as well as restaurant and retail space that would front Walnut Street and wrap around to Sansom Street. A throughway was designed so that pedestrians and vehicles could pass through from Walnut to Sansom.

The proposal was met with resistance from the owner of Fergie's Pub and a lawsuit ensued. Its proximity to the well-known bar lent to the project to be loosely called Fergie Tower. Eventually, a settlement was made, a zoning overlay was placed upon that block and the project was scaled down to have just apartments and retail.

Goldenberg reportedly had an option to buy the property and got several extensions to purchase it. The developer finally exercised its option and recently closed on the transaction. Through a spokeswoman, it confirmed the acquisition but declined further comment.

The project has the potential to be a game changer for that part of Walnut Street and an anchor east of Broad Street.

Aside from the St. James, there are no large scale residential projects and the St. James has no significant retail. The retail space as originally planned was designed could accommodate large national chains looking to expand into the Philadelphia market and help create what could be the next hot retail pocket in the city.

Source: Philadelphia Business Journal