Irish Developer Takes Prize Lot for $37M

PHILADELPHIA-Following a competitive bidding process, the Philadelphia Parking Authority has agreed to sell the L-shape Center City parcel bordered by Walnut, Sansom, 19th and 20th streets to Castleway Properties LLC for just north of $36.7 million. The location near Rittenhouse Square makes this prime real estate, and its future use has been mired in controversy.

In the late 1990s the Authority proposed a development that called for demolition of some historic buildings on the land to make way for a mix of retail and restaurant space that also included a six-story garage. This met with stiff competition from neighborhood groups that took the Authority to court. In 2004, a judge ruled in favor of the plaintiffs, prompting the Authority to put the parcel out for bid.

Dublin-based Castleway outbid local developers and the Houston-based Hanover Co. by just $90,000, Carl Ciglar, deputy executive director of the Philadelphia Parking Authority, tells GlobeSt.com. “They got a very valuable piece of land in an outstanding location.”