New $35M apartment conversion looks to be crown jewel of Main Line

At Cross Properties newest project, the Palmer, the real estate developer is trying to achieve what it accomplished at its Icon apartment project at 1616 Walnut St. in Center City.

That was a project that not only leased up quickly at high rates — rents exceed $4.30 a square foot — but the developer aimed to set a new standard in apartment living by incorporating a series of amenities, such as vitamin infused shower water, that renters couldn't find anywhere else.

The Palmer is a $35 million conversion of the former Eastern Baptist Theological Seminary, which, in its first incarnation was the Green Hill Farms Hotel.

Located at Six E. Lancaster Ave. in Wynnewood, Pa., the property is rich with history. The hotel opened in 1922 and was designed by renowned architect Horace Trumbauer. Postcards from that era enticed travelers to visit the hotel with these words: "Here is combined to rare degree the sociability of club life, freedom and convenience of a hotel, and the personal comforts of a well-appointed home."

The hotel was converted into the seminary in 1939 and, in 2012, Cross Properties bought it with plans to bring a new apartment complex to the Main Line.

"There's a fair amount of wealth on the Main Line but the existing stock of apartments was built in the 1950s and 1960s," said Kevin Michals, principal at Cross Properties. "It's old and tired. The windows don't open, the floors are creaky. They aren't fun and they aren't alive."

Inspired that the multifamily market on the Main Line could use some fresh, new product, Cross Properties moved forward with converting the four-story, 120,000-square-foot structure into 110 new apartments. Rents will range from $1,500 at the low end for a one-bedroom unit and upwards to $5,000 at the high-end for a three-bedroom unit. Some of the amenities include a saltwater pool, fitness center and yoga room, a community garden, guest suite, and 24-hour doorman and concierge desk.

"We did it at Icon and we're doing it again at Palmer. We're taking a beautiful building and bringing it back to its original splendor," Michals said. "Our brand is about location, luxury and lifestyle."

Icon is a 25-story building in Center City that was bought in 2012 by a partnership involving Federal Capital Partners, Cross Properties and Alterra Property Group and converted into 206 apartments. It was well received by renters and now, the investment market.

The property was put up for sale last fall and could potentially trade at a record-breaking price of more than $400,000 a unit, according to market sources familiar with the situation.

The Palmer is scheduled to open in May. Michaels believes it will attract professionals working in the surrounding area, especially at Lankenau Hospital and the Main Line Health System. A shuttle will run between the hospital and the apartment complex.

Source: Philadelphia Business Journal