LOCAL DEK:
More than three years after winning the right to develop the 12-acre Penn’s Landing site in Philadelphia, the Durst Organization has little to show for it.
Durst is still negotiating an agreement with the Delaware River Waterfront Corporation over the site, the Philadelphia Business Journal reported. The quasi-public agency selected Durst as the developer of the site and Durst put forth a $2.2 billion plan for it.
In a statement, Durst cited “challenging financial market, high interest rates and high construction costs” as reasons for the lack of progress. The company added that it was maintaining its sites and evaluating next steps.
Durst’s 3.5-million-square-foot proposal includes more than 1,800 residential units — some of which would be affordable — a 225-key hotel and 94,000 square feet of retail space.
DRWC picked Durst because of its history of completing large-scale projects. The two parties are trying to hammer out a development agreement, but don’t have a deadline for finalizing a deal, according to DRWC’s president; the Badger Group, a partner of Durst, is also involved in talks.
It’s not the only parcel in Philadelphia where Durst is struggling to get moving. North of the site, Durst purchased a 1.6-acre parcel in 2020 for $10.8 million from the city. The developer planned a 26-story building with 360 apartments and 10,000 square feet of retail space. A groundbreaking was held nearly two years ago, but the project has been paused for at least 18 months due to economic factors.
The one part of the grander plan for the area that is seeing progress is the project to cap more than 11 acres of I-95, which will then allow Penn’s Landing Park to be built on top of it. The infrastructure project is expected to cost $430 million; it began in the fall and is expected to take another four to five years to complete.
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