In one of Philadelphia’s biggest real estate deals of recent memory, Aramark has leased 300,000 square feet of space at 2400 Market Street on the Schuylkill River for its new global headquarters. A joint venture of The Lubert-Adler Real Estate Funds and PMC Property Group, Inc., both of Philadelphia, acquired 2400 Market Street and a connected 300-car parking garage in 2014 for a total of $42 million. The 300,000 SF building, originally developed as an auto assembly plant in the 1920s, had been used primarily as a design center. The building features 70,000 SF floorplates, 12-foot-plus ceiling heights, and panoramic river views from all floors.
The Lubert-Adler/PMC joint venture will add five new floors to the top of the existing four-story building. All 300,000 SF of this new space will serve as Aramark’s new headquarters, consolidating approximately 1,200 management and support associates from two Philadelphia locations: 1101 Market Street and 100 Penn Square East. Construction began earlier in 2016 with interior demolition and structural/foundation work. Aramark employees are scheduled to move beginning in the fall of 2018.
In addition to building Aramark’s new headquarters space, the ownership will reposition the existing building, transforming the entire structure from a 300,000 SF industrial design center into a 600,000 SF Class A mixed-use trophy property with vibrant street-level shopping and restaurants. The result will be a state-of-the-art building with an architectural soul, offering waterfront views and a pedestrian extension of Philadelphia’s greenways along the banks of the Schuylkill River. The new building will feature outdoor terrace space for tenants’ and visitors’ enjoyment. The design work is being carried out by a team of two architectural firms: Gensler, Design Architect and Varenhorst, PC, Executive Architect.
2400 Market Street will offer a total of 530,000 SF of office space; 225,000 SF is available on the second through fourth floors. This space offers high ceilings, exposed columns, and large expansive windows, ideal for creative office users. Office users will enter through a soaring lobby atrium along the waterfront; the lobby also will be accessible from Market and Chestnut Streets via walkways.
The building also will have more than 70,000 SF of retail space, with the potential for waterfront dining. The retail space will open onto a new pedestrian walkway along the waterfront, and also will be accessible from Market, Chestnut, and 24th Streets. CBRE is the leasing agent for the project.
2400 Market Street is situated at the gateway to Philadelphia, directly across the river from 30th Street Station (with SEPTA and Amtrak service), within close proximity to all of Center City. Across the river, fast-growing University City is home to the University of Pennsylvania, Drexel University, several medical centers, and the Cira Centre, as well as the train station.
Since launching a successful partnership in 1997, Lubert-Adler and PMC have acquired 29 assets in Philadelphia and completed the redevelopment of more than 500,000 SF of commercial space as well as 3,770 residential units. The firms together recently redeveloped 2040 Market Street, adding eight stories atop a five-story obsolete office building to create 281 apartments with street-level retail space and an underground parking garage.
At 200 North 16th Street, Lubert-Adler and PMC are converting a 600,000 SF vacant, 22-story office building into a modern mixed-use structure with 360 rental apartments, 200,000 SF of office space, and street-level retail space. Additionally, on a five-acre riverfront site just a block north of 2400 Market Street, they are planning a mixed-use urban campus called Riverwalk. This transformational project will comprise two mid-rise apartment towers. A third tower, comprised of 600,000 square feet of office space is also being planned for the site.