PHA Reaches Agreement to Redevelop Former Chestnut Street Headquarters Site

New Apartment building will include 160 market rate and 40 affordable apartments. 

(Philadelphia, PA - October 20, 2016) - The Philadelphia Housing Authority (PHA) has reached an agreement to work with Alterra Property Group, LLC to convert the site of the agency's former headquarters at 2012 Chestnut Street into an apartment building with approximately 200 units, 160 market rate apartments and 40 PHA-supported apartments for lower-middle-income tenants.

Under the 99-year ground lease agreement, approved today by the authority's Board of Commissioners, Alterra will act on the housing authority's behalf to secure the financing and final development of the plan.

"We know that the Chestnut Street property is attractive and have received numerous inquiries about it," said Kelvin A. Jeremiah, PHA President and CEO.  "It's in our interest and the City's interest to redevelop this site to maintain a vibrant, healthy atmosphere in Center City. Including affordable apartments was a critical component of this deal for us as well."

Under the agreement, "affordable" means that the 40 apartments will be offered to individuals or families earning no more than 60% of Area Media Income ($30,840 for a family of two or $38,550 for a family of four). Alterra's plan also includes other amenities to be made available to all residents as well as 7,000 square feet of commercial space on the first floor.Alterra is a diversified real estate investment, development, and management company based in Center City.  The firm handles all aspects of real estate development, investment and management. It has completed real estate transactions across 15 states, and developed and currently manages hundreds of upscale apartments in Philadelphia that are managed under the umbrella of the APG Living.

Eight companies, including Alterra, made proposals to PHA in response to a solicitation put out by the agency last November. Seventy-six companies located in Pennsylvania, Ohio, Delaware, New Jersey, Maryland, Georgia, Virginia, New York, and Florida were contacted.
The four-story brick office building at 2012 Chestnut was built in 1927. PHA still had some offices in the building as recently as January 2008.

In April, the PHA Board approved a contract with the joint venture of Shoemaker Construction Co. and Synterra, Ltd., for the construction of new headquarters on Ridge Avenue, a key part of the authority's redevelopment plans for the Sharswood/Blumberg neighborhood. The new location will allow for the consolidation of several housing authority offices at one location, as well as the development of an adjacent grocery store.