Office to Residential Conversion Underway in Center City
299 units, parking, and retail are coming to 17th & Market as one of what could be many office updates
Happy Thursday to all who celebrate! What has everyone been up to this week? Not much? Just dwelling on life and the 1-6 Sixers start? Same.
I decided to get out for a walk about town yesterday to clear my head a bit, when 1701 Market St. came into view. Previously home to Morgan Lewis’ offices, Alterra Property Group has had plans for a residential conversion of this nondescript brown office building dating back to late 2022. After some starts and stops, this adaptive reuse is now moving full steam ahead, with the designs from NORR starting to show major progress. Let’s scope out the scene today before we dive into the details.
What’s coming to this 18-story structure? 299 residential units on the upper floors, with four levels of parking for 189 cars, all over ground-floor retail space. That’s a lot of parking for a building that has a direct connection with the rail concourses below; additionally, zero bicycle parking is required thanks to a provision in the zoning code as the building’s construction was completed before the cut-off date. The biggest change here aside from the new use is the facade, which will see large industrial-inspired windows and new metal paneling. There will also be some pretty sexy rooftop space, including lounge areas and a pool.
Despite the presence of SO MUCH car parking for such a transit-adjacent spot, the concept here is actually pretty good. It is no secret that the office market in Philly - and across the country - is seeing some major shifts in the post-Covid world. While not every office building is a candidate for adaptive reuse, we are happy to see such a large building in such a prominent spot acting as a proof-of-concept for future conversions in the area. And, in case you’re not overly familiar, this area is home to some of the largest office buildings in the entire country.
Before we conclude, we’d be remiss if we didn’t mention 200 N. 16th St. several blocks away, the granddaddy of all (recent) Philly office conversions. Formerly the home to GlaxoSmithKline, PMC Property Group purchased the building back in 2012 before rebranding it as the Franklin Tower Residences. The approach here was similar, with apartments going in over ground-level retail. This one has been wrapped up for several years and appears to be fully leased-up - perhaps an encouraging sign for the future?
So, is this a bellwether of things to come or just an outlier in a changing central business district? We’re not certain, but we’d imagine that the current environment almost requires these types of conversions in order for building ownership to remain financially viable. Where there’s a will, there’s a way - doubly so when millions of dollars are on the table.
It’s great to see the reuse of office buildings.