The new Target locations in town certainly make life easier, but every now and then we need to make a run to the big Target in South Philly. It was on our way back from such a run that we spied some relatively recently cleared real estate on Front Street, so we figured it was time to provide an update on a property we’ve covered a couple times before. A reminder, 1422 S. Front St. was previously a large warehouse.
Back in 2014, we told you that this property was available at the low low price of $2.75M. We suggested that the price was too high for the location, and the zoning risk further hampered the value of the property. Clearly, the sellers didn’t an offer they were looking for, as the property eventually traded for $1.35M in 2015. After it sold, we told you that developers were planning 15 homes for this property, with half the homes fronting Front Street and the rest on Howard Street. We were skeptical that the plan would get approved, as it called for a driveway and a front loaded garage for every home. Wouldn’t you know it, the ZBA gave their approval and this is what we can expect in the future.
With approval from the ZBA, the developers flipped to new developers, selling the property last year for $2.1M. Yeah, they did pretty well for themselves there. Though construction hasn’t really gotten started yet, the homes are already listed for sale for this project, which is called Pennsport Point. Prices start at $575K, with end units listed for $650K. We expect prices will rise as construction gets moving.
Around the corner from this project is another biggie which is starting to pick up steam. About half a year ago, we told you about Reed Estates, a project from US Construction to build 26 homes at the corner of Hancock & Reed. There was once a warehouse here, but that’s been torn down and the homes will soon rise in its place. Given the pace at which this developer typically works, we believe the homes should be progressing very quickly, and the views on Hancock Street will continue to evolve.
Can this part of Pennsport absorb 42 new homes in the next year plus? We believe it can! The Southwark on Reed project is just a couple blocks from here, and includes almost a hundred new homes being built over a roughly two year period on the site of the old Mount Sinai Hospital. Those homes have been selling like hotcakes, and we think that a couple projects nearby should absorb some of the runoff from that development. If you already live in Pennsport, you’d better get used to longer wait times at the Industry– the neighborhood is getting more crowded by the day.