Design Changes Planned for 205 Race Street As Condo Market Softens

Philadelphia's condo market has become like a meal that's been through a bad microwave - some spots are hot, while others are cool. Today, Second and Race Streets in Old City is definitely cool, and not in a good way. Brown/Hill Development has decided to deep-freeze its plans for an ambitious 10-story apartment house designed by SHoP, the New York firm responsible for 108 Arch in Old City and the Porter House apartments in Manhattan's Chelsea.

Brown/Hill's Greg Hill says the developer isn't abandonning the project, which was one of the best new designs in Philadelphia. But after months of slow pre-sales, the company concluded that there aren't enough people willing to pay $900,000 for a duplex with 15-foot ceilings on the edge of Old City, next to the on-ramp for the Ben Franklin bridge. That isn't to say no one wants to live in Old City anymore. But as many developers are discovering, it's easier to sell a $400,000, one-bedroom unit today than a $800,000 two-bedroom. Brown/Hill's plan now is to see if SHoP's design can be reconfigured to accommodate more moderately-priced units. It may be a matter of reducing the quality of the finishes. Or, the developers may be forced to eliminate the duplexes, which accounted for nearly all of the building's 53 units. That might trigger other serious design changes, since SHoP's rhythmic, zinc-and-glass facade reflected the interior arrangement - a jigsaw puzzle of duplexes with a single-loaded corridor. The design called for three kinds of glass in the windows. The building had many charms, including a strong retail presence on the ground floor and underground parking. "We love the design," Hill says, "but we just can't afford it."

There are rumors, unconfirmed of course, that sales are slow at several projects. But it's easier for projects with large institutional investors to wait things out. One project that definitely appears to moving ahead now is the Murano, the 42-story curved glass tower at 21st and Market. Judging by the amount of equipment and utility trenches, they're really digging. The Murano's developers, it should be noted, intentionally priced the tower's 302 units in the $400,000 range, to appeal to a broader market.

But projects in more tested locations, like Rittenhouse and Washington Squares, are still able to command high prices.
Although 205 Race didn't work out as planned, Brown/Hill and the Goldenberg Group say they are satisfied with the pace of sales at the Ayer, the art deco office building overlooking Washington Square. (Please excuse the Blogger.com blue! This photo is really a lovely golden color.)