More than a year after Goldenberg Group proposed a new $150 million mixed-use development at the site of a former Philadelphia health center at Broad and Lombard streets, the sale of the property has not closed and the project’s timing remains unknown.
The Blue Bell development firm announced in October 2019 its plan to build a two-phased project at 500 S. Broad St. that would eventually cover a block with 300,000 square feet of multifamily space and renovate the existing 55,800-square-foot, 1950s health center, creating room for the University of the Arts along with retail and other components.
“We are still planning a dynamic mixed-use development that includes residential, student housing, hospitality, restaurants and grocery,” said David Mercuris, senior vice president at Goldenberg. “Covid-19’s impact on these sectors has slowed the development timeline and we are working with PIDC and the city to adjust the timing of the project. We remain committed to bringing nothing less than a world class project to Philadelphia.”
Until Goldenberg sorts out final details with the city, it doesn’t have a firm timeframe on when the project might commence, Mercuris said.
Aside from Goldenberg, which has completed retail and multifamily projects in the suburbs and Philadelphia, the project team includes Harvey and Robert Spear, which operate E-Z Park and own adjacent surface parking lots; and Badger Group, which is also a Blue Bell-based real estate company.
In January 2020, Goldenberg entered into an agreement of sale to buy the property from the city, said Jessica Calter, spokeswoman for Philadelphia Industrial Development Corp.
While construction activity has continued during the coronavirus, it hasn’t been unusual for developers to pause projects or revaluate them as a result of the pandemic. Many are waiting to get more clarity on what demand drivers will remain post-pandemic and during an economic recovery.
The site Goldenberg has locked up consists of two parcels totaling nearly 40,000 square feet. One property is at 500-508 S. Broad St. and totals 25,620 square feet. The other site is at 508-510 S. Broad St. and totals 13,980 square feet. It is zoned CMX-4. Goldenberg was expected to pay $16.1 million to buy the combined parcels in a transaction initially scheduled to close last year.
“Since then, they have continued through the diligence process,” Calter said in an email. “The project is a mixed-use development with components of residential including student housing, grocery, and hospitality. With tenants in these sectors significantly impacted by the Covid-19 pandemic, the timing of the project has been impacted. The city and Goldenberg Group are working on reevaluating the timeline but there have been no significant changes to the project.”
Goldenberg’s plans on the development started in July 2017 when the city decided to put the health center property up for sale and issued a request for qualifications from interested parties. The city ultimately selected Goldenberg from a total of five responses.
*Article courtesy of Philadelphia Business Journal
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