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An aerial view of how a proposed development could look
at 1900 Walnut St. in Philadelphia.
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Southern Land Co. has put 1900 Walnut St. in Center City
under contract for roughly $30 million.
This would be the second Philadelphia deal for the
Nashville, Tenn., real estate company. It is developing 3601 Market St., a
28-story building with 368 apartments in University City that is scheduled to
open this year.
The site at 1900 Walnut is high profile and overlooks
Rittenhouse Square, one of the most coveted addresses in Philadelphia. Since
2007, Castleway Properties of Ireland has owned the parcel and put it up for
sale two years ago.
The site has a long history of not being developed in
spite of its prime location. (For more on that see this story.) At one point,
Toll Brothers Inc. (NYSE: TOL) took a look at the site but later decided not to
pursue it.
It now appears Southern Land has negotiated the right to
buy the property for $30 million unless it is able to rezone it to allow for
denser development. If it is successful in rezoning the parcel, it will pay an
additional $10 million, according to documents detailing the arrangement.
Southern Land said in these documents that it has met
with city planners and the Center City Residents Association and "there
appears to be support for a rezoning, as they both want the site
developed."
If the rezoning does not happen, Southern Land will seek
to construct a structure that would have 220 apartments, 50 condos, 27,500
square feet of retail space and parking. If the rezoning does go through, the
real estate company will build a larger development that will include 360
apartments, 65 condos and 27,500 square feet of retail. The company is looking
for an investment partner to fund at least 90 percent of the cost to build
either project.
If all goes as planned, a deal is scheduled to close on
it sometime this month.
Source: Philadelphia
Business Journal
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