$150M Avenue Of The Arts Transformation Breaks Ground: The Philadelphia Deal Sheet
A major project to bring new greenery and public art to one of Philadelphia’s busiest corridors is moving forward.
Nonprofit Avenue of the Arts Inc. held a groundbreaking ceremony Wednesday on South Broad Street, and construction is set to commence later this month on the $150M project.
While the entire project running from City Hall to Washington Avenue is expected to take a decade, the segment between Spruce and Pine streets across from the Kimmel Center will come first.
A raised, landscaped median and new lighting are scheduled to be in place by June ahead of the World Cup matches Philadelphia is hosting.
Work on extending the sidewalk into the current drop-off lane with seating, artist-designed banners and raised planters is slated to begin sometime in 2027 and take one year to complete.
“This is Philadelphia claiming its future,” AAI board Chair Carl Dranoff, who has long been a major player in the neighborhood’s apartment market, said in a statement.
“Cities that lead the world invest boldly in culture, public space, and greening. With AveArts 2.0, the Avenue of the Arts will become one of those rare, magical streets the world talks about.”
SALES
Temple University spent $8M on a former McDonald’s site next to its sports complex at Broad Street and Girard Avenue, the Philadelphia Business Journal reported. The now-vacant property has flexible CMX-2.5 zoning, which permits for multifamily, office and retail uses but not educational facilities.
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Faropoint spent $3.9M on a 33,800 SF industrial facility at 10049 Sandmeyer Lane in Northeast Philadelphia. The property is fully leased to Amneal Pharmaceuticals subsidiary Dixon-Shane LLC, its prior owner. A Marcus & Millichap team including Andrew Fannin and Brian Higgins brokered the deal.
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A joint venture between PCCP and Alliance Residential Co. acquired the 173-unit Luxor Bala Cynwyd at 9 Presidential Blvd. from Westrum, which built it in 2021. The five-story mixed-use community on almost 3 acres is 89% leased.
A $37M ACRE Capital acquisition loan for the project was arranged by a Berkadia team including Patrick McGlohn, Brian Gould, Hunter Wood, Patrick Cunningham and Natalie Hershey.
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Saba Apartments LLC spent $6.25M on the Steel Works Apartments, a 42-unit apartment complex south of Harrisburg in Steelton. A SCOPE Commercial Real Estate Services team including Craig Dunkle and Mher Vartanian represented seller Integrated Development Partners, while Niaz Butt with Honest Real Estate represented the buyer.
LEASES
Assurance, tax and consulting firm RSM US LLP signed a lease for 22,300 SF on the 21st floor of 1735 Market St., owned by Silverstein Properties and Arden Group. Silverstein’s Keith Cody and Gordon Hough represented the landlord, while Newmark and Cushman & Wakefield teams represented the tenant.
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New York City-based Rose Associates will be handling leasing at Bridge on Race, a 145-unit apartment building in Old City. The 17-story tower constructed in 2017 is owned by Brown Hill Development.
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Club Studio Fitness is opening its first New Jersey location in a 30K SF space at the Ellisburg Shopping Center in Cherry Hill. The facility is expected to open in spring 2027.
CONSTRUCTION AND DEVELOPMENT
Black Bear Asset Management, Greystone Capital and the Crest Group have formed a joint venture to develop 216 apartments at 1493 Van Buren Road in Palmer Township outside of Easton. The 16-acre project is expected to cost $67M.
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The city of Philadelphia has completed work on a $33M Northwest Transfer Station garbage facility at Umbria Street and Domino Lane. DIGroup Architecture and Civil & Environmental Consultants Inc. helped design the 21,500 SF facility, which can handle 550 tons of trash and 100 tons of recyclable material per day.
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St. John Properties Inc. plans to transform the Harrisburg Mall into a 550K SF mixed-use complex called Swatara Exchange. The final product will include office, pad sites, and flex research and development space. The first phase, centered on two single-story flex buildings, is slated to start this spring and wrap early next year.
THIS AND THAT
The Port of Philadelphia had a record-breaking 2025. The organization’s facilities handled 889,268 twenty-foot equivalent units, up 6% from 2024 and exceeding U.S. trade growth projections of 3%. PhilaPort’s container volumes have gone up by 39% since 2020 as it has increasingly focused on temperature-controlled shipping.
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Procida Funding has been tapped by Millstone Property Group to manage the Felix, a 116-unit mixed-use development at 4240 Chestnut St. in University City. Q-Real Estate Partners has also been named a capital partner to help facilitate improvements at the 17-story building.
