By Paul Schwedelson – Reporter, Philadelphia Business Journal
An entity affiliated with Eclipse Development, a new Philadelphia development company, has bought a Center City office building from the American Red Cross in a prime location for a potential multifamily project.
The entity bought the five-story, 52,676-square-foot office building for $7.2 million, according to property records.
Eclipse’s plans for the property are still being formed. A potential option includes leasing office space on a short-term basis for up to two years before either converting the existing building to multifamily or tearing it down to make way for a ground-up multifamily building, Eclipse co-partner Ryan Kalili said.
The property is on the northeast corner of 23rd and Chestnut streets, a block east of 2400 Market St., an office building that was redeveloped and expanded in 2018 and a block south of law firm Morgan Lewis & Bockius’ new headquarters at 2222 Market St.
The purchase price came out to $137 per square foot. It was most recently assessed by the City of Philadelphia at over $12 million, or $229 per square foot.
“It’s undeniable that the location is phenomenal,” Kalili said. “You’re on a great corner in Center City. We had decided we wanted to do a project in Center City. This particular parcel made sense for us because there was value in the existing structure as well.”
Eclipse is led by Kalili, 26, along with co-partner Michael Dinan, 26, and Eric Haab, 27, who is development associate. They all previously worked for Archive Development, which specialized in development in Fishtown and throughout Philadelphia, but didn’t have any Center City projects.
The Business Journal first reported last week that Eclipse also recently purchased a development site at 21st and Ludlow streets from Parkway Corp.
The former Red Cross office building is fully vacant, which appealed to Eclipse, since that would make a residential conversion or demolition of the building less challenging.
The property sits in a CMX-4 zone, allowing for a mix of commercial and residential uses. Dinan said Eclipse is beginning its leasing effort for prospective office tenants, which could serve as a temporary solution while evaluating a long-term path forward.
Full story: http://tiny.cc/2tpe001
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