Report: Castleway Properties Has Deal to Sell Vacant Rittenhouse Lot for $30-$40M

The buyer, Southern Land Co., has its sights set on the prime lot near Rittenhouse Square.

Is something finally going to happen at 19th and Walnut? | Image: Google Street View

Is something finally going to happen at 19th and Walnut? | Image: Google Street View

On Friday, we told you about the news that crews were on site taking soil samples at the long vacant lot on the 1900 block of Walnut Street–the home of the defunct boutique hotel/condo tower proposal by Castleway Properties. It raised a ton of questions. Are the old plans back on track? Did they find a partner to make this project a reality? Maybe they’re preparing the lot to sell it to another developer?

As it turns out, it appears that it’s the latter that seems to be the case.

Natalie Kostelni of Philadelphia Business Journal reports Castleway Properties has a deal in place to sell the parcel, which includes the surface lot fronting Sansom Street, to Southern Land Co. for $30 to $40 million.

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.

Kostelni details the project with, and without zoning changes:

  • With zoning: 360 apartments, 65 condos and 27,500 square feet of retail
  • Without zoning: 220 apartments, 50 condos, 27,500 square feet of retail space and parking

The report also states that Southern Land Co. is looking for an investment partner to finance “at least 90 percent of the cost to build either project.”

Tennessee company set to buy Rittenhouse Square parcel for $30M [Philadelphia Business Journal]
More Castleway coverage [Property]