A Philadelphia-based developer co-leading the transformation of the Family Court building on the Benjamin Franklin Parkway has pulled out of the project, citing a shift in its investment strategy and complicating the future of the ambitious project, which includes the relocation of the African American Museum. National Real Estate Advisors said that the difficult construction financing environment partly led the company to decide against taking part in the plan to redevelop the historic building at 18th and Vine streets into a hotel and the museum. The developer, one of two involved in the project, had also planned a parking garage and 30-story residential building at a neighboring site. “Despite this decision, the project continues,” said Jeffrey Kanne, president and CEO of National Real Estate. “We are currently facilitating the transition of our role to the other development team members who are in negotiations to secure an alternative capital partner.” Mayor Cherelle L. Parker said the project and the relocation of the African American Museum, which the city has committed $50 million to support, would still move forward. The other developer, Washington D.C.-based Frontier Development & Hospitality Group, remains involved, but it was not immediately clear what National Real Estate Advisors’ withdrawal would mean for the timeline or overall feasibility of the plan. Parker noted that the multi-pronged effort, which also includes an expansion of the Central Branch of the Free Library, remains a priority. She said the city and the Philadelphia Industrial Development Corp., the city’s public-private economic development corporation, are proceeding with next steps, including a “predevelopment” feasibility study.
Source: Philadelphia Inquirer; 4/15/2024