New City

by Amy L. Webb

Old City may be reminding you of old-moneyed Society Hill lately, and with good reason. A construction boom, including thousands of million-dollar condos, has just begun. The streets south of Northern Liberties and south of Market are home to Old City’s new, swanky digs.

The National Products Building at 109-131 N. Second St. had been an abandoned shell with its original terra-cotta and steel facade preserved. But now, two New Jersey-based development firms -- Matrix Development Group and K. Hovnanian Companies -- are in the process of transforming the shell into a massive condominium complex. When finished, the 2.3-acre site will include 320 loft-style condos, flats and townhouses. The National's first floor will be converted into 18,000 square feet of retail stores and parking for 200 cars. Prices for the finished residential units will start between $300,000 and $800,000.

Old City 108, which will be located on Arch between Second and Front streets, is being built and designed by local firms Brown Hill Development and Bower Lewis Thrower Architects and the New York-based SHoP Architects. The units will feature bamboo plank flooring, 10-foot ceilings, 8-foot panoramic windows and a bathroom with a separate soaking tub. The building's exterior will be constructed with zinc and brick. When finished, the 12-story, 30-unit complex will also offer on-site parking and a doorman. These condos start at $392,000 -- though some have gone for as high as $2 million. Many of the units have already sold.

Other new condominium developments include The Station House, a converted fire and police station on Fourth and Race streets, and dozens of individual buildings and warehouses that are being converted into residential living space. All told, realtors say that they expect 2,000 new residential units to be built in Old City during the next three years.

"Old City sat for years and never developed into anything," says Karen Joslin, a realtor with Plumer & Associates. "Five years ago, you could buy an entire building for $100,000."

But recent development, tax-abatement plans and suburbanites' desire to move back to Center City has helped fuel the high demand for luxury space. Many of those $100,000 buildings are now being sold for $1 million or more.

"What you see in Old City are old warehouses and buildings once occupied by businesses," Joslin says. "Unlike the narrow, tall townhouses elsewhere in the city, these spaces allow for lots of open space, high ceilings, wider windows and more personal space. There's a demand for this style of unit, and it'll likely continue to grow."

Realtors also note that Old City's proximity to Center City offices, neighborhood cafes and movie theaters, and access to public transportation has been attracting would-be developers.

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