"We wanted the space to be open for events and also be able to enclose an artist's work in a particular area. We wanted that flexibility but didn't want to commit to a wall," says McDonald.

The pair considered installing retractable panels that would operate like a garage door but nixed that in favor of creating walls on wheels. At first their carpenters were befuddled by the request. "They were not able to see how it could be possible," says Yaron. "But we put our heads together and came up with a solution."

Modular walls is but one of the many creative solutions Yaron and McDonald came up with in order to see their vision of a gallery space dedicated to student and emerging artists become a reality.

SITE SPECIFIC: Marguerite McDonald (left) and Jennifer Yaron want to give new artists a home. : mike m. koehler

The two put extensive thought into establishing a cool, clean look while also retaining elements of their turn-of-the-century building's original form. F.U.E.L. is a gorgeous space, featuring white marble and oak floors, plus a large multitiered crystal chandelier suspended from a 40-foot-high ceiling. Refurbished elements of the neoclassical structure include tall columns, carved plaster cornices and marble balustrades.

The place in no way resembles the site's former life as the setting for Real World: Philadelphia. The building's other prior lives include The Girard Corn Exchange Bank and the Seaman's Church Institute.

The pair was able to score the Old City property thanks to the generosity of its owner, Jennifer's father, Michael Yaron, who heads up a real estate investment management company. Yaron's father also helped out by providing some of the private financing as well as the construction company; however, Harrise Yaron, Jennifer's mom, says that the project truly belongs to her daughter and Marguerite. "It's really the girls' vision," she says, noting that the two did a lot of research for their business plan.

Likewise, Marguerite's mother, Jayne McDonald, says that the duo were diligent in learning about the business. "They knew what they wanted."

Friends since eighth grade, F.U.E.L.'s co-founders were the best of pals while attending Germantown Academy. Marguerite, now 25, went on to obtain a degree in public and private sector organization. Jennifer, 24, started out studying for a career in education, then switched to graphic design. Their backgrounds came in handy, as did the fact that both were brought up in business-oriented families. (Marguerite's folks own and operate McDonald Uniforms Company.)

The two became business partners when they came up with F.U.E.L.'s concept, enabling student and emerging artists to show their work in a professional gallery setting—often for the first time, since most haven't exhibited outside of their schools. Rather than sign artists to exclusive contracts, a common practice in the gallery world, their goal is to be a launching pad—hence F.U.E.L.: Fostering Undergraduate Exposure on Location. Workshops and speakers are planned to help artists learn how to navigate the gallery dealing scene. A cafe area on the first floor is to encourage discussion and community. "We want everyone to feel comfortable and not be intimidated. It's a creative space," says Yaron.

Of course, selling student work means that prices at F.U.E.L. are lower than what is commanded by established artists. And while the co-founders were given their building, there are still utilities, salaries and bills to pay that art sales alone will likely not cover. Jennifer and Marguerite's solution there is to make their 20,000-square-foot space available for special-event rentals (that part of the business falls to their mothers).

F.U.E.L. opened with a jam-packed private party last Friday. It was a big smash, complete with valet parking, full-scale open bar, high-end hors d'oeuvres and live music duo. Friends, family, arts and culture buffs flooded the space, as well as movers and shakers such as Gov. Ed Rendell and mayoral hopeful Jonathan Saidel. An official public opening is slated for June's First Friday, with the debut show—painters from schools such as Tyler and the University of the Arts. "We're going into our first show with pieces that are a strong reflection of the artists and are not something you see every day," says McDonald. "We wanted pieces that will wow someone and really challenge you intellectually."

F.U.E.L.'s space alone is sure to wow visitors, too. As office manager Jason McCallum observes, "We'll be the biggest gallery in Philadelphia right off the bat."

The F.U.E.L. House, 249 Arch St., 215-592-8400.