Center City block sells; real estate empire being sold off

Little by little and piece by piece, the Center City real estate empire controlled by Richard Basciano is being sold off.

The latest is the sale of 2100 of Market St., which amounts to roughly a city block, to Brandywine Realty Trust (NYSE: BDN).

Brandywine, which is based in Radnor, Pa., also bought earlier this year a garage at 7th and Market streets from Basciano.

And more transactions are in the works.

Developers are circling many of the dozen or so properties along Market Street owned by Basciano’s STB Investments Corp. The timing is good for Basciano since this is one of the best real estate markets in which to sell in years.

Some are either under agreement or in negotiations. For example, Parkway Corp. bought two properties, including where the Forum Theater is located, from STB that would round out all of Parkway’s other parcels it owns in the 2300 block of Market, and is seeking to buy more.

A contact at Parkway couldn’t be reached for comment. Alex Wolfington, a broker representing Basciano in these deals, didn’t return calls seeking comment.

Basciano assembled many of these properties decades ago when there was no interest in stretching the Central Business District to that far edge of West Market Street. Neither market forces warranted it nor did developers see any opportunity.

But that has changed.

A seemingly astute investor, Basciano was banking that this day would eventually come though not in the way it did. The sales come two years after a tragic collapse of a Salvation Army building that killed seven people. The site of the accident, which is becoming a memorial to the victims, happened in a building Basciano owned that was in the block Brandywine just bought.

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The recently purchased properties are very important pieces in the next development cycle in Center City, especially since there’s just not a lot of large parcels left, and they are getting into the hands of well-funded and respected developers.

As a result, these sites present real opportunities. Once developed, they will reshape the western portion of Center City as it marches west and looks to connect with University City -— something planners and economic development officials have long wanted — a connection between the financial district with its hub of educational institutions.

These aren’t the only sites in play in that part of Center City that will change the Philadelphia skyline in the future.

PMC Property also has under agreement a large development site called River City, which can accommodate up to 2.5 million square feet of new development on roughly seven acres along 60 N. 23rd St., and 2301, 2201, 2101 and 2001 John F. Kennedy Blvd.

Already, PMC and Lubert Adler have big plans for 2400 Market St., which now houses the Marketplace Design Center. The developers want to construct a mixed-use development on top of the building.

Now, we wait to see what happens.

Editor's Note: This story was updated to include the parcels that Parkway Corp. acquired and to clarify which property PMC Property Group bought.

           

Source: Philadelphia Business Journal