Opus East Downsizes Condo Plan, Goes Rental

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PHILADELPHIA-In the wake of the proliferation of Center City residential condos, rising construction costs and an up-tick in mortgage rates, Opus East has pulled the plug on its initial plans for a 39-story tower containing 292 for-sale residential units. Instead, it will develop a 14-story, 257-unit rental property at 1919 Market St. Ground will break in July, with completion two years after.

The cost-estimate for the original plan, announced in December 2005, was about $135 million. “By the time we got through the design process and zoning approvals, the costs, primarily for oil- and steel-related products, came in 32% higher than our initial pricing,” Craig Guers, VP and general manager of Plymouth Meeting-based Opus East, tells GlobeSt.com. “That would move up condo prices by about $150,000 a unit. Interest rates also went up, and so did the number of condos in Center City.