Luxury Condo Project for Sale in Philadelphia

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By: Natalie Kostelni

Mariner Commercial Properties has put 1441 Chestnut St., a luxury condominium tower project across from Philadelphia City Hall that has yet to be developed, on the market. While no asking price has been set, the land and the approved project could sell for as much as $60 million, according to one estimate. The building would cost about $300 million to construct.

Developer Tim Mahoney's Mariner company of Ardmore, Pa., and local philanthropist Brook Lenfest recently received approvals and settled a five-year legal dispute surrounding the 58-story, 844,000-square-foot building. Once completed, it would be the tallest residential building in the city. The site is 22,433 square feet.

The project, called 1441 Chestnut St., will include 279 condominiums, a 4,000-square-foot spa and a 6,000 square-foot rooftop sun deck with pool. The Mariner project will also carve out room for high-end retail and a restaurant facing Chestnut Street.

Mariner also retained an option to include a 160-room hotel. If the hotel is incorporated, it would reduce the number of condo units to 208. A ground breaking was expected by January 2007. Whether that will remain as a target date would be up to a new owner.

With the legal dispute resolved and zoning approvals in place, Mariner has received unsolicited offers to buy the project. "It seems that some of the largest real estate developers in the country are as bullish on Philadelphia's future as we are," Mahoney said in a statement.

Mariner retained CB Richard Ellis (NYSE: CBG) to explore all of the potential opportunities regarding the project, including its outright sale.

"It's arguably the premier development site in the city based on what's planned and what can be developed," said Robert Fahey, an investment broker with CB Richard Ellis who is marketing the project. "It's a very well thought-out project and has received a lot of interest."

Arden Group of Philadelphia has plans to construct a competing $250 million, 48-story building that is being marketed as the Residence at the Ritz Carlton. It would be located at the former One Meridian site, which sits adjacent to 1441 Chestnut.