The 10-story Georgian Revival structure was designed by famed local architect Horace Trumbauer and built to house the YMCA in 1911. It was renovated in 1985 and the space was leased to the city's district attorney's offices from 1986 to 2006. As GlobeSt.com previously reported, the DA is relocating to 176,114 sf in the Widener Building, another Trumbauer-designed landmark, at One South Penn Square.
The sale to DSG includes the main lobby and floors five through 10. Gary Prosterman of DSG tells GlobeSt.com the estimated cost of conversion is about $55 million. Of the hotel flag, he says, "It's a known and major brand, but I can't release the name just yet."Preliminary plans call for 194 guest rooms, a 90-seat restaurant and a 40-seat bar in the lobby level. Meeting space and the existing ornate ballroom will be restored. "This is a spectacular building," Prosterman says. "The millwork at the lobby level would be difficult to replicate today. The building also lays out ideally for a hotel.
"We're bullish on Downtown Philadelphia. The planned expansion of the Convention Center is icing on the cake," he adds. The Arch St. building is a half-block from the planned Broad Street entrance to the expanded portion of the Convention Center, which is scheduled for completion in 2009.
Jonathan Stavin and Christian Dyer, first VPs in the local office of CB Richard Ellis, represented Great West in the negotiations. Valerie Bowman, VP of CBRE's global corporate services, also based here, represented DSG in the transaction. DSG, which develops and operates hotels throughout the US, is a national client of CBRE.
"The location was extremely desirable due to the Convention Center expansion," Stavin tells GlobeSt.com. "This will do a lot to raise the ambiance of the whole LOVE Park area," he adds. The park, next to City Hall, is named for the original Robert Indiana LOVE sculpture. The other portion of the Arch Street building is owned by a local private investment partnership, according to Stavin. It contains office and retail space, including Sweat Health Club, and is fully leased.
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