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Pioneering the Market East Revival – A Look Back at 833 Chestnut Street

In 1998, 833 Chestnut Street, then known as 841 Chestnut, was taken over by a financial institution when a major tenant moved out, leaving the building only 27% occupied and valued internally at $5 million. AthenianRazak stepped in, shepherded the property steadily through five different owners and asset managers and two major market changes and the building sold to a national healthcare REIT in 2015 for an undisclosed price well over $100 million.

 

The turnaround of this huge (3/4 million sf) property was a quiet but steady success story that helped ignite and support the revitalization we’re seeing in the area now known as Market East.

 

The Philadelphia Inquirer saw potential in the area and in 2012, moved its offices to the third floor of the former Strawbridge and Clothier department store at 801 Market. Century 21 department store opened on the first level of that building in 2014. East Market, a 4-acre mixed-use development that spans an entire block between Market and Chestnut streets will house an apartment tower and retail such as WaWa, Iron Hill Brewery and Mom’s Organic Market. Target has opened on Chestnut St. and the Gallery Shopping Center is being transformed into The Fashion Outlets of Philadelphia. This is just the beginning.

 

AthenianRazak always knew the potential of Market East because the location was prime and we recognized the value of all of the transit there. However, the area was always battling an image of being the lesser side of town. We think the development there makes perfect sense, is long overdue and love that we were in on its inception. As Market East continues its boom as one of Philadelphia’s hottest real estate markets, 833 Chestnut can be viewed as the foundation of this transformation. Its quiet turnaround set the stage and created the stability that catalyzed today’s growth.