Saturday, March 21, 2015

Philadelphia's housing stock gets a boost in "luxury"

The view from 500 Walnut | Philadelphia, PA

Let's start this one off with a few examples.

When someone uses the term "luxury" to describe clothing, you probably have certain brands that come to mind. For me, I think of Burberry, Louis Vuitton, etc.

When someone uses luxury to describe cars, you probably have certain brands that come to mind as well. For me, they are Porsche, Bentley, etc.

When someone uses luxury to describe real estate, what comes to mind? For me, it's cities like New York, LA, Chicago, and DC. For sellers of luxury real estate in those aforementioned cities, that's where buyers have the option to spend $10M, $20M, or even $50M+ on their next home; or maybe, their home-away-from-home (aka pied-a-terre).

That's how much "luxury" real estate runs for the super-rich today.

But what if I told you that Philadelphia, as a city, was now aggressively trying to compete for those same luxury home buyers? I mean if anything, why not start with buyers in New York? Philadelphia is a short 90 mile commute, and a lot more reasonable in the price department. Oh yeah, and the last time I checked, it only takes a little over 1 hour to commute from 30th St Station (Philadelphia) to Penn Station (New York) on Amtrak's Acela Express; that's totally doable for those who want to live in Philly and still maintain their job in NYC.

Hey, I'm just stating the obvious here.

Today, for a luxury home buyer in New York City, he/she has the option to spend $85M on a condo in Manhattan; that is based on a general search I did today on Realtor.com. I'm sure there are even more expensive options than that one, listed privately of course.

Seriously, 85 ... million ... dollars!

Holy sh*t, that condo actually exists? Yes it does, my friends. And to an extremely wealthy luxury buyer, who only wants the best in life, money is no object when it comes to high-end real estate.

Now, let's look at Philadelphia.

Today, for a luxury home buyer in Philadelphia, he/she has the option to spend either $15M on a mansion in Rittenhouse Square, or $6.9M on a condo at 1706 Rittenhouse; that is based on another general search I did today on Realtor.com.

As for more expensive options in Philadelphia (again, listed privately), records are about to be broken at one of Center City's newest projects: 500 Walnut.

The most coveted of the 2 penthouse options at 500 Walnut: $17.6M (... or so I have heard/read). In my professional opinion, that is where Philadelphia is looking to go as a city.

And why shouldn't we?

Philadelphia has world-class amenities: the arts, museums, historic sites/architecture, high-end dining/shopping, and some of the top companies and universities in the world (Hello, Comcast + UPenn). Plus, Philadelphia has a top-notch location, right in between 2 of the most expensive places to live in the US (as well as the world): New York + DC.

So if our city can attract world-class residents, we should have world-class real estate opportunities ... right?

Right.

Aside from past projects completed during the last housing boom, such as 1706 Rittenhouse, The Ayer, and The Residences at The Ritz Carlton, Philadelphia proper did not have much of a demand for luxury real estate. All of our area's most luxurious real estate options were located in the suburbs (e.g. Main Line, Bucks/Chester County, etc).

And so with this post, the luxury real estate movement starts to take shape in the City of Brotherly Love & Sisterly Affection.

Now that Center City is experiencing a shortage of real estate supply, mostly in the condo department (To All Sellers, This is good news for you!), new projects are already starting to pop up and meet demand: One Riverside, The Residence at Twelve40, etc.

It will be interesting to see how Philadelphia's luxury sector performs over the next few years, as the local real estate market starts to heat up.

Wednesday, March 11, 2015

The DNC is coming to Philadelphia, and our city is ready for the attention

Sweet graphic provided by uwishunu.com

Sorry to beat the proverbial "DNC dead horse" again, but what can I say, it's big news for Philadelphia!

There have been countless articles, blog posts, and tweets about the Democratic National Convention choosing Philadelphia as its host city in 2016 (Sorry, Brooklyn, NY + Columbus, OH).

But rather than make this the same-old, same-old post about how awesome the exposure will be for our great city, I'd rather focus on what it means for locals: 1) Growing skyline, 2) Transportation improvements, and 3) Social scene. Just by having the DNC come to town means that shovel ready projects, as well as those already in progress, will get higher priority than they did before the announcement was made.

Might I also add that all 3 of those previously mentioned elements are important/related to real estate, which makes this particular post even more appropriate.

See ... part of the reason the Dems picked Philadelphia (aside from us being the city that gave birth to liberty and freedom ... oh, and the fact that our city is awesome), is that they saw what we all currently see: opportunity.

That's the American dream, right? D*mn straight it is.

Okay, let's get started.

In typical PhillyUrbanLiving.com fashion, I'm going to break down my favorite points from this Philadelphia Magazine article (you can find more great articles on Twitter, @phillymag):

- The Changing Skyline: Of course, this one is the easiest one for me to talk about seeing that real estate is my profession. Plus, I just enjoy talking about new development in Philly. Projects like the FMC Tower and the new Mormon Temple should both be completed by the time the DNC rolls into the city, but unfortunately, the Comcast Center for Innovation + Technology will not be up yet; bummer. For the FMC Tower especially, it will definitely represent itself well as the largest Philadelphia skyscraper west of the Schuylkill River.

- How the Dems will get around: This one specifically addresses the strides Philadelphia is making not only toward its public transportation infrastructure, but also toward its bicycling culture (which we are tops in regularly). For SEPTA, the long-awaited SEPTA Key program should be fully operational on all Philadelphia buses, subways, and trolleys; but most likely, not on trains come DNC time. Also, Philadelphia's bike share system (now being referred to as Indego) will be in full rent-a-bike mode for the DNC. Lastly, Uber will most likely be the taxi of choice. I mean seriously, it's just too easy, for both tourists and locals alike.

- Hillary at The Gallery?: I used to visit The Gallery as a kid; it was the "city mall" to us suburban folk. As the 90s and 00s passed, the mall became less cool or more unappealing; but its new image is already starting to change. With all of the recent press The Gallery has received, I can almost guarantee that visitors will want to do some "I'm on vacation" shopping at Philadelphia's version of Century 21 (which just recently took up about 100K sq ft of space at The Gallery). Lots of positive changes are coming to one of the largest urban malls in the US, and the investors/city are just getting started on its transformation.

So as you can see, I really believe that Philadelphia will shine brightly on the DNC's international stage come July 2016.

From one local to other locals, our city deserves it.

Wednesday, February 25, 2015

The New York Times listed "52 Places to Go in 2015." Philadelphia was their #3 spot.

Spruce Street Harbor Park | Philadelphia

Wow ... #3 ... yo!

I think a lot of Philadelphians were taken aback recently by the high-praise we received from The New York Times (of all media companies, and of all places) which named our great city the third city you have to see in 2015 ... oh and I forgot to mention, in the entire world (just behind Milan and Cuba).

That's one h*ll of a list to land on, and even more so when you're at the top of the pack. Way to go, Philly!

The title given to Philadelphia's spot was "The making of an outdoor oasis." I believe once most people read that part, they saw why we were listed so high (or why we were even listed at all). Don't get me wrong, I absolutely love this town; and I think it has unbelievable assets, aside from our green space esteem.

But the focus of NYT choosing us was that they looked specifically at our recent outdoor projects and showed tourists why they need to come and see our beautiful city today.

Now, Philadelphia does have some other large assets that most big cities would kill for: Compact design, great public transportation, and lots of urban green space. Put all 3 of those things together, and it encourages both locals and tourists alike to traverse Philadelphia outside (and on foot). The winters can be tough, but spring, summer, and fall make up for the few cold months we have learned to live with.

Need a reminder about how large and expansive our urban green space actually is (and I'm not just talking about Fairmount Park)? Check out these locally filmed drone videos for a better look: Philadelphia 1 (with natural sounds), Philadelphia 2 (with some other local shots of New York), and Philadelphia 3 (all different shots of the city).

So as you can see from these well done videos, Philadelphia has great green space. Not only that, but its tied directly in with its local neighborhoods (e.g. Wissahickon Valley, Pennypack Park, etc), as well as with Center City (East Fairmount Park), University City (West Fairmount Park), and the Navy Yard (FDR Park).

The article also goes on to compliment Philadelphia on some of its new and ongoing projects: Dilworth Park, Spruce Street Harbor Park, Race Street Pier, and the Schuylkill Banks Boardwalk. All four projects started out as grand ideas to connect the city with more green space, and today they are all big success stories!

Thanks for the kudos, NYT.

Sunday, February 15, 2015

Is Michael Nutter Philadelphia's greatest mayor ... like, ever?


As the title of the article states, "Under Nutter, Philly Became Awesome ... Sorry, Rendell. You've been left in the dust."

Those are some pretty strong words from Philadelphia Magazine, and obviously, no offense to Rendell. Ed Rendell was one of the main reasons Philadelphians started thinking big, and thinking differently, over 30 years ago.

The dude literally started "cleaning up" City Hall by picking up a mop and bucket back in the early 90s. Good man, Eddie.

I may be a bit biased writing about this subject, because I've always been a big supporter of Michael Nutter, but I'm going to talk about it anyway. What else can I say, he's the man. But, as someone who was raised outside of the city's limits, and has lived within the city's limits since 1997, I can say with confidence that Philadelphia's national (and international) reputation has improved by leaps and bounds.

As I have said before, and will repeat again, Philadelphia (as a big city) still has some major items to address (e.g. public schools, business taxes, property tax enforcement, etc). That's not the point of this post. The point is to show locally concerned citizens all of the positive changes Mayor Nutter has made (in less than 8 years, mind you), and the need to keep that momentum and energy moving forward; past the 2015 mayoral election, and into the future.

As for the local urban climate, here are some fantastic "Nutter Numbers":
So needless to say, Nutter has made some serious improvements in almost all of Philadelphia's Quality of Life metrics. Does that mean our city's work is done? Not even close. Philadelphia still has high levels of crime, poverty, and litter; which can stunt the progress we've made.

But my personal feeling is that local residents (as well as local suburbanites) are more on board with Philadelphia than they have been in many years, and we are now all working toward making our city even better in the years to come!

2015 is a big election year for the "City of Brotherly Love and Sisterly Affection," the list of Mayoral candidates (as well as city council candidates) is growing by the day, and more Philadelphians are realizing how important it is to vote. Since Philadelphia is a city where organized special-interest groups have majorly influenced mayoral elections for the last 50 years (umm ... we have not had a party change in our mayor since 1952 ... yup, seriously), you know there is a problem in the local political system.

So not only do we need to think long and hard about Philadelphia's next mayor, we need to also do the same for our city council members. Remember how the PGW deal fell through? Yup, city council has great power in our city too.

If you don't vote, you don't have a say. If you don't have a say, then you cannot help move our city forward. If you cannot help move our city forward, the status-quo will remain. Philadelphia's primary election is on May 19th, and the official election is on November 3rd.

Nutter has inspired others to run for mayor and city council, so please show your support and vote in 2015!

If you would like to read more about the Nutter Administration's accomplishments, known as "Tale of the Tape," the full report is here.

Monday, January 26, 2015

Philadelphia as a "supercharged" start-up hub

Learn more about PSL at PhillyStartupLeaders.org

I found this article interesting because it not only talks about Philadelphia's history as a start-up city, but also how Philadelphia is doing in the busy entrepreneurial world of today.

As stated, "Philadelphia's start-up scene today is scrappy, vibrant, and inclusive." All good adjectives, and all very reminiscent of a city like Philadelphia.

Classic companies such as Comcast, Urban Outfitters, QVC, and Vanguard, as well as Philadelphia newcomers Monetate, Revzilla, and NextDocs, are all big reasons why entrepreneurs have chosen (or are choosing) Philadelphia as a home base for their company.

As I have mentioned on numerous occasions, Philadelphia has one of the most convenient geographical locations in the country (located in the NE US, right between NYC & DC). The Northeastern US is lauded as the nation's most economically developed, densely populated, and culturally diverse area of the country. Not only does Philadelphia have a prime location, but we also have access to one of the world's best talent pools; graduating from one of our many academic institutions (e.g. UPenn, Drexel, Temple, etc).

So why am I even blogging about start-ups? This has never been a tech-centric blog, but I try to relate everything I read to the local real estate market.

In today's global environment, a robust start-up economy is a sign of strong growth. Where there are thinkers/doers, there are opportunities for jobs. Where there are opportunities for jobs, local residents spend their hard-earned money. When local residents spend their hard-earned money, real estate performs well.

Since buying is cheaper than renting today (in all of the 100 largest US metro areas), a healthy job market will increase the buying and selling of Philadelphia real estate. This then leads to even more jobs in other complementary industries (e.g. construction, home improvement stores, retail, etc).

There are 5 areas, as stated by DreamIt Ventures' managing partner Karen Griffith Gryga, that can make Philadelphia one of the top spots in the US for start-ups and entrepreneurship; and they/re very doable.

Read on to learn more.

Monday, January 19, 2015

Copper Hill Real Estate sets up shop at Pipeline in Center City Philadelphia

Visit us on Facebook, Twitter, or at CopperHillRE.com

Some of you loyal readers out there have already heard the news, while others have not. As of January 2015, I am now 1 of 3 Co-Founders at Copper Hill Real Estate in Philadelphia!

After spending 1.5 years at Brown McKinney and 3.5 years at US Spaces, I could not be more thankful to both Rudy Brown (Brown McKinney) and Fred Glick (US Spaces) for investing in me as a real estate professional. They have both taught me a lot, not only about local real estate in Philadelphia, but also what it takes to build a start-up real estate office in a crowded, busy, cut-throat Philadelphia real estate environment.

Without their mentorship, I would not be writing this post to all of you today. Thank you, Rudy & Fred!

Okay, back to the title of this post.

The other 2 Co-Founders of Copper Hill, Ryan Garrity (Chief Creative Officer) & Andrew Janos (Chief Financial Officer), could not be better business partners for what CHRE is trying to accomplish. We all live in Philadelphia, we all know Philadelphia, and we all love Philadelphia! That is what makes our team great, and what also sets us out on the path to success.

Here is Copper Hill's purpose:

"Copper Hill Real Estate provides a transparent and efficient real estate service through our informed professionals, as well as, a forward-thinking business model for today's mobile environment. We believe that brand elegance, market knowledge, and customer service are essential to delivering a customized and seamless real estate experience. Our independence, digital platform, and modern approach are what separate us from the industry."

So in short, CHRE is making the process of buying, selling, and renting real estate easier to understand, we are making online property searching and completing paperwork simpler and more efficient, and we are creating a client service-based environment that's simple, valuable, and enjoyable.

As a first step to being a mobile and modern real estate company, we decided on office space at Pipeline Philly (located in The Graham Building, right across from City Hall). So not only do we get to enjoy a prime Philadelphia office location, but we have access to over 20,000 sq ft of functional work space with other like-minded companies. Included in the space are a reception desk, conference room, casual seating area, and full kitchen. A big thank you to both Greg Stott and Josh Dubin for making CHRE feel right at home!

So to summarize, our choice in office space is requisite of our business platform.

I'm sure a lot of people out there have a real estate "war story," or have a family member or friend with one, that had caused him/her nothing but stress and bad memories when buying or selling a home. Our primary goal as a company is to change that perception by educating our clients properly and delivering on our promises.

For any/all real estate inquiries, please feel free to reach out. Copper Hill is now open for business!

Wednesday, December 24, 2014

Happy Holidays, all!

I would like to personally wish all of you loyal readers out there a happy and safe holiday!

Enjoy your time with family and friends, and check back in with Philly Urban Living soon for more exciting news in 2015. It should be both a busy year for real estate and local development.

Below are some holiday shots of the "City of Brotherly Love & Sisterly Affection." Enjoy!

Rittenhouse Square, Philadelphia
Love Park, Philadelphia
("The New") Dilworth Park, Philadelphia

Sunday, December 21, 2014

New Philadelphia development will take a different approach to high-rise living

Marketplace Design Center, Philadelphia | Image courtesy of Bradley Maule

In general, apartment living in Philadelphia is pretty standard and predictable.

Your most common options are: "Studio," "1 Bed," and "2 Beds." Once you need "3+ Beds," the most common options are rowhomes, twins, or single families; not apartments/condos.

In 2015, the real estate status quo will shift due to changing demographics.

If you are unfamiliar with the Marketplace Design Center, let me paint the picture. When you are driving along I-76 (east or west) and you reach the downtown vicinity, there are multiple overpasses/bridges from both I-676 and Center City/University City connections. If you look across the Schuylkill River from I-76, you will see a large waterfront property with a giant mural on it. The mural is an ocean scene with whales swimming; officially known as Robert Wyland's "East Coast Humpbacks," circa 1993.

That's the place.

Now that you have a point of reference, let's talk about the latest project to grace the MDC (as there have been other recent attempts to redevelop the building, due to its prime location). PMC Property Group is looking to reconfigure the building into a modern, mixed-use destination (e.g. office space, ground-floor retail, hotel rooms, and apartments).

Unfortunately, it sounds like Wyland's mural won't make it through the rehab; bummer.

In order to fit all of these new elements, the building will expand vertically to accommodate the new apartments and hotel rooms. New entrances and lobbies will also make the building more inviting from the street.

What about the "different approach" you mentioned in the title? How does that play into this?

Okay, this is how Philadelphia's new approach relates to a city like NYC. The apartment/condo lifestyle in Philadelphia mostly caters to 2 groups: students/young professionals, and empty-nesters. Reason being, most people in those demographic groups only need a maximum of 2 Beds.

But what if someone wants to keep their apartment/condo lifestyle after they start a family? This is what PMC wants to accomplish.

In NYC, you can get apartments/condos/co-ops with 3+ Beds (and even 4+ Beds). Meaning you can live in a high-rise building and still have a large living space. Reason being, NYC is the densest metropolitan area in the US; therefore, NYC grows vertically to accommodate population growth.

So, if Philadelphians are flocking to Center City to enhance their lifestyles and the population is rising, we should now offer the same options as well.

That's why instead of the typical "Studio," "1 Bed," "2 Beds" approach, the new Marketplace Design Center will feature "1 Bed," "2 Beds," and "3 Beds" options in the residential section of the building. This can now cater to both young families (1-2 children) and extended families (nuclear families living with relatives); or, to those who just want/need more living space.

No matter which way you look at it, Philadelphia is currently experiencing a housing gap for the high-rise family lifestyle.

The project is expected to kick off in June 2015, so keep your eyes peeled for activity.

Thursday, December 18, 2014

The "King of Prussia Line" will change Philadelphia forever


As PBJ quotes, "All aboard the KOP Express!"

For those who are unfamiliar, KOP is a local acronym for King of Prussia, which is considered to be the largest mall in the US (when measured by total retail space). It's a slippery slope, as Mall of America has more "stores."

No matter which way you slice it, KOP is a big and awesome place.

Now, to address the article that inspired this post. There has been lots of talk as well as various plans presented (remember the Schuylkill Valley Metro) for a new rail line out to KOP ... for years. For the most part, the plans were always too big and the cost was too extreme.

Enter, the "King of Prussia Line."

Since SVM is basically dead, and the need for convenient rail out to KOP is more alive than ever, the simplest and most doable approach seems to be an extension of the Manayunk/Norristown Line. Over the last 2 years, there were 30 different options being explored based on location, number of stops, cost, etc. Those 30 options were then whittled down to 16 different options, and today there are only 4 options being considered.

In other words, progress is being made.

With over 30,000 jobs (just within KOP Mall and its surrounding office parks alone), and 25M visitors each year, $500M to get something like this done kind of sounds like a small investment to make for such a large and significant improvement. Not only will it make 76 East/West (in between Manayunk/Roxborough and KOP) more bearable to drive, but it will create a more efficient business/residential/tourist environment for everyone in the Greater Philadelphia area.

As for real estate, you only have to look at the Main Line for an example of transit oriented suburbia. This large part of suburban Philadelphia has thrived since the 1830s, when rail was constructed in areas like Malvern, and it continues to do well today due to it's storied history, generational families, top-notch schools, and convenient location.

Today, it's suburban areas like Radnor, Ambler, and Conshohocken that continually do well from a market value perspective, and much of it has to do with their access to convenient SEPTA rail lines.

Wednesday, November 26, 2014

Happy Thanksgiving, Philadelphia et al!


It's going to be a great day tomorrow.

No more snow, the sun will be out, the Birds will be on (and playing the Cowboys, no less), and family/friends will all sit down to a home-cooked meal.

I'm sure everyone out there has a lot to be thankful for, as do I.

While you're getting your home ready tomorrow morning for the day's festivities, make sure you tune into the Philadelphia Thanksgiving Day Parade (which is now in its 95th year).

It's considered to be the oldest Thanksgiving day parade in the US, and the Benjamin Franklin Parkway will be hoppin', as it is every year on TGD.

Enjoy the day, all!