The 10-year tax abatement program has led to an explosion of new housing in the city, much of it at the lower end of the market, a BIA study finds. And when the abatements expire, the city’s balance sheet will be better off for it.
Consider the 10-year property tax abatements on new construction and rehabilitation a down payment on a future gusher in revenue for the city thanks to the huge jump in construction activity it has triggered, argues a study released in late March by the Building Industry Association of Philadelphia.
The abatement, which freezes property taxes on improvements to commercial and residential property in the city for 10 years from completion, has completely reversed the trendlines for new construction activity in the city compared to its suburbs, states the BIA report, “Philadelphia’s 10-Year Property Tax Abatement” (PDF). Since its implementation in 2000, new home building in the city has increased by 376 percent, while in the suburbs, it has fallen 11.25 percent on average across the four collar counties.
That means a future flood of revenues into city coffers. Read more »
Vue32 offers many amenities, but this is the one management’s counting on to wow the tenants. | Photos: Sandy Smith
When we checked out the Vue32 project ten months ago, it was only barely rising from a hole in the ground.
It’s progressed quite nicely since then, and its developer, Radnor Property Group (RPG), expects to open the first element of the mixed-use tower — a day care facility and preschool on its first two floors — sometime around the end of next month.
And so it was that construction crews from general contractor TN Ward Company were all over the site when we visited yesterday, sprinting to finish the various pieces of this complex.
Actually, several of the apartment floors were closer to completion than the day care center was, probably so Vue32 property manager Bozzuto Management Group could show prospective tenants the actual spaces they could call home starting Real Soon Now. Read more »
Strong demand and rising rents should make it easy for projects in the University City development pipeline, like the Schuylkill Yards joint venture between Drexel University and Brandywine Realty Trust, to find tech-sector tenants to fill them, if the latest CBRE “Tech-Thirty” report is any guide. | Image: SHoP Architects and West8
Those shiny new buildings rising in University City are not only turning it into Philadelphia’s second downtown — they’re making it the nation’s hottest submarket for high-tech office space, according to CBRE’s annual “Tech-Thirty” survey.
The survey, which examines job growth and technology office space rent growth in the nation’s 30 largest technology employment centers, put the area surrounding Drexel University and the University of Pennsylvania at the top of the list for office rent growth — the average rent of $41.40 per square foot is up 37.8 percent over the two-year period from the second quarter of 2014 to the second quarter of 2016 — and in growth of net absorption (the amount of space on the market that gets occupied), it ranked second only to Tempe, outside Phoenix, with a growth rate of 23.3 percent over that same period. Read more »
City of Butter-ly Love made with Vanilla frozen custard, Butter Cake, Caramel and Brown Butter Bits
Shake Shack paired up with Drexel University’s Food Lab to bring a new limited-time item to the menu. Starting today, July 1st, the new City of Butter-ly Love concrete will be served at the University City location. The concrete is vanilla custard with butter cake, caramel and brown butter bits.
The partnership began as a competition for students in the culinary arts program to create new item menus. Eleven ideas were submitted, seven were chosen as semi-finalists, and now the winner is available.
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The 30th Street Station area master plan laid out a fantastic vision of a second downtown for Philadelphia in University City. Only money stands in the way of realizing it, with the public sector as the weakest link. | Rendering by Skidmore, Owings & Merrill, courtesy Amtrak
The figure was tossed out rather casually in the course of yesterday’s formal unveiling of the two-years-in-the-making master development plan for the area surrounding 30th Street Station in University City, but it represents the largest single bet yet placed on the future of Philadelphia.
The parties involved — Amtrak, Brandywine Realty Trust, Drexel University, PennDOT, SEPTA, and a slew of elected officials and community groups — have put their chips down on a project that has many moving parts and will play out over the course of decades.
As we’ve seen plans almost as ambitious as this one go up in smoke (anyone here remember River City?), it’s only logical that we should ask what its chances for completion are. Herewith are my own odds for the plan’s key components and the overall chances that the plan will be fully realized sometime in our or our children’s lifetimes. Read more »
A Korman (and Drexel) family portrait post-groundbreaking. | Photo: Sandy Smith
When Drexel University moved its library across 33rd Street from the heart of campus in 1977, the family of Maximilian Korman (Class of 1929) and Samuel Korman (Class of 1934) made a d0nation intended to turn the building into a campus social and study center.
Over the years, the couches were replaced by computers as the university became an early adopter of networked microcomputer technology. Today, in a ceremonial groundbreaking, the Korman family joined Drexel University President John Fry in launching a reconstruction project that will return the 58-year-old Korman Center to the role the family envisioned for it, namely, the beating heart of the campus’ academic quadrant.
“This project has been wanting to happen for so long,” Fry told the audience at the ceremony before once again thanking the Kormans for giving it the push it needed. Read more »
Architect’s rendering of Vue32 in the context of its surroundings | Rendering by Erdy McHenry Architecture courtesy Cashman & Associates
Ground was ceremonially broken one week ago for Vue32, the new apartment tower Radnor Property Group (RPG) is building and will manage for Drexel University at 32nd and Race streets. But a recent hard-hat tour of the site reveals that work on the foundation and substructure is well under way.
RPG President David Yeager led us on a hard-hat tour of the construction site and explained why the slender 16-story tower looks the way it does and how all the pieces of the project, which also includes a row of townhouses, fell into place.
Yeager worked with Drexel President John Fry on a series of redevelopment projects on and around the Franklin & Marshall College campus in Lancaster, and now that he’s back in Philly, Fry has turned to Yeager and his company again to help him carry out Drexel’s master campus plan. The Vue32 project advances two key elements of it: reducing the pressure on off-campus housing in Powelton Village by providing more apartments for members of the Drexel community and promoting homeownership by Drexel faculty and staff in the neighborhood as well. Read more »
The latest data from Drexel’s Lindy Institute show house prices in Philadelphia have fully rebounded from their post-recession lows. | Photo credit: iStock/Pgiam
Something very unusual happened in the winter of 2016 in Philadelphia: Not only did house prices continue their upward climb from their post-housing-bubble low, but they set a new all-time high, and house sales rose from the prior quarter along with them.
The first-quarter 2016 Philadelphia housing market report from Drexel University’s Lindy Institute for Urban Innovation and Myers Research show that the citywide house price index hit an all-time high of 473.5 in the first quarter of 2016. (The index’s base value is the average house value in the first quarter of 1980.) That represents a 3.9 percent increase over the index value in the previous quarter and a one percent increase over the index’s pre-recession peak of 466.9 in the second quarter of 2006. The median sale price citywide also rose to an all-time high of $143,000 in the quarter just ended. Read more »
Insomnia Cookies has been feeding college students cookies and even cold milk since 2003. Starting out as a food truck, they now have locations in almost two-dozen states and two storefronts in Center City Philadelphia. Now they’re adding brick-and-mortar locations where a couple of the original food trucks were located. This spring, Drexel and Temple Universities will be getting their own storefronts that will be able to offer Insomina’s full menu including ice cream, brownies, Cookie Cakes and Bigwiches.
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Katie Parla will be offering a lecture, book signing and aperitivo at Drexel
Drexel University’s hospitality program has announced its spring events at its Academic Bistro. The events include a Roman food and beverage lecture with author Katie Parla, a Zeppoli pop-up and a traditional Swedish smorgasbord.
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