By: Natalie Kostelni
Parkway Corp. of Philadelphia and Hanover Co. of Houston have partnered to construct on two key corners at Broad and Callowhill streets, which have the potential to reshape and create what is essentially a new gateway to North Broad Street in Philadelphia.
The development is called Hanover North Broad and consists of constructing two, 6-story apartment buildings that would have a total of 339 units, 330 parking spaces in a garage and retail space totaling 17,500 square feet.
Each building would stand across from one another on opposing corners.
One building at the southwest corner would have 229 units and 11,000 square feet of retail space and the parking garage. The smaller structure would be on the southeast corner and have 110 apartments and 6,000 square feet of retail. Each would have interior courtyards as well as a range of amenities.
The developers declined to divulge the cost of the project.
This is the first time Hanover and Parkway came together on a project. A broker was showing Adam Harbin, who is involved in acquisitions and development at Hanover, development sites around the city and ended up connecting him with Parkway, said Rob Zuritsky, president of Parkway.
Hanover seldom participates in a joint venture on projects but on this one “it worked,” Harbin said.
“We provide complimentary services and share similar cultures and values,” he said. “It’s a rare opportunity to develop two sites across from each other, simultaneously in an urban environment.”
The ongoing development of the Reading Viaduct into a rail park is one feature of North Broad that is helping to encourage more investment in the area and adding to its allure, Zuritsky said. Another aspect is its access to transit and major arteries, he said.
“It’s one of the few sites that is built on what is a transportation center,” he said. “The first stop off of the expressway is our front door. The Broad Street line will get you close to the Navy Yard and, if you get on the expressway, you can be in West Philadelphia in minutes. It’s really an interesting location.”
The two parcels are currently surface parking lots and were sold by Parkway for $13.5 million to the development entity involving Hanover and Parkway. Ken Mallin and Josh Nadel of MPN Real Estate arranged that transaction.
Mallin and Veronica Blum of MPN are overseeing the leasing of the retail space at Hanover North Broad. It is one of a growing number of retail spaces migrating to North Broad and testing whether tenants will follow to what is becoming a burgeoning but new city submarket for apartments and retail.
A project called 1300 Fairmount is underway and will have 84,000 square feet of retail, and the conversion of the Divine Lorraine will have 20,000 square feet of retail space.
“There’s already a lot of interest,” Mallin said about the space at Hanover North Broad, noting that a boutique or specialty grocer would be a good fit for the site as well as specialty retail and restaurants.
This isn’t Hanover’s first project in Philadelphia.
It built Domus, a mixed-use developmen t in 2008 that it did in partnership with the University of Pennsylvania at 34th and Chestnut streets in University City. It is also developing a 338-unit apartment complex in King of Prussia, Pa., at the Village at Valley Forge.
Work has already started on Hanover North Broad and it is expected to be completed in two years. Bank of America and Citizens Bank are financing it.
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