Philadelphia 1st Development Revolutionary Property Plans
Revolutionary properties revealed it will transform the 2300 block Market St. site in the Center City neighborhood of Philadelphia into a must-have life sciences destination with the support of a joint venture with Tishman Speyer and Bellco Capital. The project will add 200,000 square feet of state-of-the-art life sciences space to the market.
2300 Market will emerge in place of what was intended to be a multi-family mixed-use development in the hands of the previous owner, Lubert Adler. Now, the transit-focused site adjacent to the University of Pennsylvania and Drexel University will host Los Angeles-based Breakthrough’s first development in Philadelphia.
“We believe the research and development inventory has not kept up with the world-class science and demand for space in Philadelphia. It was therefore important for us to find a site that would both offer a prime location in the market and meet the needs of innovators. We found this unique opportunity in Market 2300,” said Aaron Kazam, senior vice president, acquisitions, at Breakthrough Properties. commercial real estate director.
The life sciences real estate development company relied on the assistance of D2 Capital Advisors for consultancy services during the site selection process. D2 also acts as financial advisor for the project.
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A breakthrough appealed to an architectural firm KieranTimberlake to design 2300 Market, which will be a mid-rise tower made of mixed materials, including brick and glass, and a skillful combination of architectural styles. The modern lab will include amenities such as a wrap-around outdoor terrace halfway up the building.
As details about the building continue to trickle in, Breakthrough pointed out that sustainability will be a key part of 2300 Market. The company will place great emphasis on energy efficiency, reducing carbon emissions and providing a healthy workspace. The property will be designed to qualify for LEED Gold certification, as are all Breakthrough US developments.
Philadelphia’s Life Sciences Highlight
The timing of Breakthrough’s 2300 Market project appears to be right. “We are on the brink of an explosion in our city of life sciences and its cell and gene therapy – which we are known around the world to be at the pinnacle,” council member Allan Domb said during of a meeting of the municipal council on May 5, 2022.
Domb wasn’t exactly exaggerating the facts. The City of Brotherly Love has carved out a place for itself in the life sciences sector. As noted in a Q1 2022 report by Necklaces“Philadelphia’s life sciences market continues to grow and mature due to both growing organic demand in the region and growing recognition outside the region that the ‘Cellicon Valley’ is an epicenter for the development of gene and cell therapies.”
Now, Philadelphia’s life sciences real estate market needs to catch up with its fledgling reputation. Over the past few years, the availability of purpose-built labs and incubation spaces in the metropolitan area has been severely limited, but this is only beginning to change, according to the Colliers report, with developments such as the proposed 3 million square -foot hub at the Navy Yard.
Breakthrough selected Cushman and Wakefield to oversee the marketing of 2300 Market as the exclusive rental agent for the project. It’s unclear if Breakthrough, Tishman Speyer and Bellco will tap into funds from their recently closed $3 billion Breakthrough Life Science Property Fund to help fund the development.