Critical Philly Development Site in Market East Up for Grabs

A savvy developer has an opportunity in front of them to be part of the revitalization of Philadelphia’s Market East neighborhood.

The estate of real estate investor Samuel Rappaport listed the development site at 1301 Market Street for $27.5 million, the Philadelphia Business Journal reported. The surface parking lot site is considered critical for the neighborhood’s resurgence, steps from City Hall.

“We would like this to be a cornerstone of the development of East Market moving forward,” said Colliers’ Larry Steinberg.

The property’s been in the Rappaport family for some time and annually generates $800,000 in revenue. But the property has potential for much more.

The site has one of the more favorable zonings in all of Philadelphia, allowing a buyer the option to build a commercial property or a high-density residential building.

One buyer already made an attempt at the former. Oliver Tyrone Pulver Corporation signed a contract in 2016 to buy the site for around $35 million. The developer was eyeing a 38-story, 840,000-square-foot office property. But as the years went by, those plans were scaled down to 30 stories and 700,000 square feet. Ultimately, they never came to fruition.

The city appears eager to get things going again at the site, though, as officials focus on improving the Market East corridor. A couple of years ago, the City Council approved a $1.3 billion proposal to build an arena for the Philadelphia 76ers on East Market Street, only to see the team pivot on its plans.

There were also once plans for the team to develop 380 residential units, 28,000 square feet of retail and 127 parking spaces at 1000–20 Market Street, as well as plans at 920–38 Market Street for 340 residential units, 26,000 square feet of retail and 114 parking spaces.

A joint venture between Comcast and the Sixers ownership group ultimately acquired a handful of sites on Market Street for $56 million last year, but it’s unclear what the plans are for the properties.

— Holden Walter-Warner