Brandywine sells Delaware Riverfront properties to Durst Organization

A huge slate of properties lining the Delaware Riverfront have sold to The Durst Organization, a New York-based real estate company that counts One Trade Center as one of its holdings, in the family-run firm's first acquisition outside of its home city.

The purchase of the more than 5-acre site marks The Durst Organization's confidence in the Philadelphia market.

 “We’re excited that our first purchase outside of New York is The Piers at Penn’s Landing, because of the progress and potential we see for the revitalization of the Philadelphia waterfront,” said Alexander Durst, The Durst Organization's chief development officer, in a statement. “This purchase reflects our bullish thinking on Philadelphia and the long-term possibilities that we see for the development of the city as a whole.”

The acquisition includes Piers 12, 13, 14, 15, 19 and 24 – collectively known as the Philadelphia Piers at Penn's Landing. Brandywine Realty Trust is the seller.

The purchase includes several long-time waterfront establishments as well as more recent additions, like Morgan's Pier. Dave & Busters, Hibachi Japanese Steakhouse, the Philadelphia Marine Center marina and a DLC Management Parking Facility are all part of the buy.

The Durst Organization pointed to Mayor Jim Kenney's recent commitment of $90 million towards the $225 million creation of a park that sits atop I-95 as part of the motivation for the purchase. The floating park has been part of city officials' discussions for several years as major metros looked to rebrand their waterfronts, creating a destination that draws both tourists and locals while moving away from the industrial past associated with cities' waterways.

The Schuylkill River Trail, on the other side of the city, serves as an example.

Durst explained to the Philadelphia Inquirer that existing leases on some spaces will influence plans for the property, although a residential component is in the works.

The company’s plans for apartments at the site are in their very early stages, and it will be years before any work can begin, Durst said. One consideration, he said, is Dave & Buster’s lease, which lasts until at least 2020 on one of the assemblage’s most readily developable piers.

Brandywine told the Inquirer it opted to unload the properties to focus on its projects in West Philly, which include the Schuylkill Yards development.

Source: Philadelphia Business Journal