There have been other office complexes built in Keystone Opportunity Zones, which are an important tool in Pennsylvania's economic development strategies. However the one Buccini/Pollin is about to build is by far the largest. Thus, the project will not only give more potential tenants the opportunity to avail themselves of the huge income and sales tax breaks, lower utility costs and cheaper rent, but it will also provide a huge boost to Chester.
"The land cost is less--perhaps by as much as 20%," Buccini says as he explains how the benefits filter down to tenants. Once we begin operations, costs will be between 20% to 30% less because of savings on real estate taxes and utilities. We will then pass those savings onto tenants," he says.
The state is providing other assistance to the firm: $80 million for environmental remediation; also, the Department of Transportation is building off ramps from 295 to the development's front door. "This has been a huge investment on the part of the state," he says. "It really wants to see it succeed."
The development will include approximately 180 townhomes, 225 apartment units, 42,000 sf of retail, including an 8,000-sf restaurant, 435,000 sf of new office and a 200,000-sf convention center. There will also be structured parking providing 1,350 spaces, a community marina and greenways on the 70-acre site. Construction begins in the fall.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
