Could it be that enough time has passed to release 1911 Walnut from its past?

Over the years, the Rittenhouse Square property has humbled veterans of the local real estate industry. Plans dashed, deals broken, lawsuits filed. It became special for reasons that weren't so flattering. Though a prime piece of real estate in one of the ritziest parts of Philadelphia, the L-shaped site has remained undeveloped since the early 1990s even though attempts have been made.

Perhaps its bad karma began in December 1994 when what had been the Metropolitan Reporting Bureau and Eric Rittenhouse theater burned to the ground in a six-alarm blaze.

In the late 1990s, Moreland Development owned the development rights to the property, which was then controlled by the Philadelphia Parking Authority. A mixed-use project that Moreland proposed was met with fierce neighborhood opposition and there was a court battle over the historical designation of three buildings that the developer wanted to demolish. Eventually, Moreland decided to move on and gave up the development rights.

PPA continued to own the property and, in 2007 sought bids to sell it. Three finalists competed for it and Castleway Properties came in with the highest bid. The amount of money it paid can still cause gasps. The Irish company shelled out $36.7 million, or $1,011 a square foot.

In early 2008, Castleway presented plans that included a 50-story mixed-use project that never went anywhere and the recession took hold. By January 2013, Castleway decided to it was time to put the site up for sale. At the least, it wanted to recoup what it spent on acquiring the site.

Soon Philadelphia Management Co. put it under contract. After a series of negotiations that never materialized into a final deal, the real estate company decided to walk away from it, said W.C. Weiss Jr. of Equis Commercial Real Estate, who was assisting Philadelphia Management at the time. "We ended up losing the deal after a year," he said. "I didn't want to deal with it any more."

Toll Brothers then made a run at it in late 2013 but never consummated a transaction.

Weiss decided to get some distance from 1911 Walnut but kept thinking about it. He eventually brought Southern Land Co. of Nashville, Tenn., to the table. The real estate developer was interested in buying the property.

A deal was hopeful. It was April of last year and Southern Land was serious about seeing a transaction to the end. The company was smitten with the site and its location. That didn't mean it was easy to get done.

"It was a tough deal and we had to work hard at it," Weiss said. "It was a moving ball and complex. It took 10 months to get a contract signed and one month to get a transaction closed."

It finally closed last week. Southern Land reportedly paid upwards of $40 million for the property though that couldn't be confirmed.

"That deal wouldn't have gotten done if it wasn't for them," Weiss said. "I was dealing with gentlemen from Tennessee. They care not only about the bricks and mortar but they also put the community in the deal. They look at the whole picture."

When I interviewed Tim Downey, CEO and founder of Southern Land, earlier this month, he insisted the company would engage the community and "come up with something that everyone likes."

With that backdrop, maybe it is 1911 Walnut's time.

Source: Philadelphia Business Journal