This Week's Philadelphia Deal Sheet
An embattled Philly real estate company is moving forward on a development near the heart of Fishtown's dining and entertainment scene.
U.S. Construction has broken ground on a 107-unit multifamily project at 1120 Frankford Ave., one of the most recognizable empty lots in Fishtown. The five-story building is set to include two ground-floor retail spots, a roof with a deck and a green component, and 38 bike parking spots. It will offer no on-site car parking.
On the north side of the lot, a mural with "Welcome to Fishtown" and three tabby cats has grown beloved in the neighborhood since it was painted in 2017. The mural would be obstructed by the new development.
Based in Philadelphia, U.S. Construction is the listed developer on city documents, though the majority of its business is as a general contractor. The site is owned by an anonymous LLC.
U.S. Construction is facing legal action as a result of dealings between co-owner and Chief Financial Officer Dustin Salzano and his father, Thomas Nicholas Salzano, in the latter's capacity as the alleged mastermind of a Ponzi scheme run by National Realty Investment Advisors.
JLL has promoted Ryan Room to chief operating officer for its property management business, elevating him from his position as regional property manager for the Greater Philadelphia region.
That role, which oversees the management of 85 office properties in Pennsylvania, New Jersey and Delaware, now passes to Caroline Gadaleta, the regional property manager for the New York Tri-State Area. She will oversee JLL's property management for both markets.
Silverang Development Co. has sold the former Sacred Heart Hospital building in Norristown, anchored by the Montgomery County Department of Health and Human Services, for $22.5M to an out-of-market buyer. The five-story, 262K SF building sits on a 3.12-acre lot at 1430 Dekalb St. that spans multiple city blocks.
The Montco Human Services Center takes up 120K SF of the property, which Silverang bought from Montgomery County in 2014 for $17.5M, according to county property records. A YWCA and an elderly care center operated by Mercy Life also have leases at 1430 DeKalb. A partnership of brokers from Colliers, Flynn Co. and CBRE managed the transaction.
The D2 Organization has purchased four parcels totaling 45 acres in the South Jersey township of Carneys Point for an industrial complex that could be as large as 1M SF, the Philadelphia Business Journal reports.
Situated 4 miles from the Delaware Water Gap bridge, the site's four parcels include one 78K SF office building and three empty lots. The sale price wasn't disclosed, but construction costs are estimated to be up to $70M. D2 purchased the parcel from the Delaware River and Bay Authority, PBJ reports.
National Real Estate Development has landed a $135M construction loan for its 13-story, 360-unit apartment building at 200 Spring Garden St. on the southern edge of Northern Liberties. Walker & Dunlop arranged the financing, which was provided by insurance company Ullico.
National broke ground in November on the development, the first phase of $500M worth of construction it has planned with equity partner Kushner Real Estate Group along North Second Street. Over 23K SF of retail is planned at 200 Spring Garden, with local chain City Fitness taking over 7K SF. The gym's first location was in a single-story building on the site that was demolished to make way for the new construction.