$53 Million Construction Financing Secured for Innovative 2040 Market Street Project

Philadelphia, PA — Financing is now in place for a progressive mixed-use Center City development project at 2040 Market Street, and construction on this venture is currently underway.

PMC Property Group is developing this project, which is located at the southeast corner of 21st & Market Streets in Philadelphia's central business district. Built in 1967, this facility served for decades as the headquarters for AAA Mid-Atlantic before the company's 2005 relocation to Wilmington, DE. After sitting vacant for 6 years, the property was starting to show signs of deterioration when it was acquired by PMC in early 2011.

The original building was a five-story mid-rise, with the second floor cantilevered over an enclosed garden area. By implementing a creative design, the company plans to convert it into a much larger, handsomely reconfigured residential-commercial building. Under the direction of PMC Property Group's general contracting division, the conversion of this property will include the addition of eight stories on top of the existing main building, with two 13-story towers and a courtyard in the rear, as well as the creation of an underground parking facility. These additions will increase its size from 120,000 to 300,000 sf, providing ample space for more than 280 one- and two-bedroom apartments, ground-floor retail, and more than 150 below-grade parking spaces.

The project is expected to have a tangible positive impact on the immediate surrounding area of the city. “Market Street West has historically been considered Philadelphia’s core office district,” explains PMC Executive Vice President Jonathan Stavin. “Adapting outdated office space into market-rate housing not only reduces the supply of substandard office space, but also helps bring 24/7 street life to this area.”

First Niagara Bank and TD Bank provided $53 million in funding for this project. 2040 Market Street is expected to be ready for occupancy in fall 2012.

For retail leasing information, please contact Shaun Lyons at Precision Realty Group (215-300-9688, ext. 10).