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DSG Plans $55M Rehab of Former Y

PHILADELPHIA-The hotel developer pays $8.5 million for a portion of 1421 Arch St. with plans for a four-star boutique hotel.

By Marita Thomas | Updated on April 25, 2007

PHILADELPHIA-Denver-based Great West Mutual Life has sold the 125,000-sf portion of the two-part condominium building at 1421 Arch St. to Memphis-based Development Services Group for $8.5 million. DSG plans to redevelop the property into a four-star European-type boutique hotel.

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.

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