Falls Center
Location: East Falls, Philadelphia
Size: 700,000 sf
Project Type: Adaptive reuse of former hospital
Ownership Structure: Iron Stone Real Estate Fund I - owned
jointly with venture partner
Total Projected Investment: $60 million
Status: Leasing
In 2006 Iron Stone I acquired Falls Center, a 700,000 sf complex at the center of metropolitan Philadelphia. Iron Stone I acquired this property from a failed hospital operator that needed to sell quickly to put an end to large operating losses. When a high bidder was unable to close the operator turned to Iron Stone I under extreme time pressure. Eisenstein and Friedland assembled financing and closed the deal in two weeks. As a result, Iron Stone I acquired the property for $17/sf, a fraction of its market value.
Falls Center
is situated on 12 landscaped acres with panoramic views of the entire city.
Its location on Henry Avenue and proximity to the junction of Route 1 and I-76
give it a prime transportation advantage. The complex consists of 4 main buildings,
a smaller gatehouse at the main entrance, and a 450-space multi-level parking
garage, along with 600 surface parking spaces. The facility was previously
home to the historic Medical College of Pennsylvania, the first medical school
for women in the United States. Iron Stone I is pursuing historic designation
for the property.
The planned redevelopment of the site will include four components: market-rate
rental apartments; leased office, commercial, and educational space; a senior
care facility (3559 Scotts Lane) ; and retail with frontage on a high-traffic
commuting corridor.
Falls Center will capitalize on the built-in infrastructure
and location advantages offered by the site to create a vibrant mixed-use facility.
Commercial leases totaling 165,000 sf have been signed or are currently being
negotiated, and if completed, would make the development cash-flow positive
even before the majority of the projectÕs income potential is realized.
http://www.falls-center.com
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