$2 billion development project stalls on Philadelphia's waterfront
Add Axios as your preferred source to
see more of our stories on Google.
Rendering: Courtesy of Delaware River Waterfront Corp./Durst Organization
A New York City developer has stalled plans for a $2.2 billion development on Penn's Landing — the largest project on the Delaware River waterfront.
Why it matters: Philadelphia's waterfront is in the middle of a development boom, and this project would bring thousands of residential units, offices, a hotel and retail to the area.
State of play: The Durst Organization is still negotiating plans to build a dozen towers on nearly 12 acres of Penn's Landing, more than three years after the developer was selected to lead the project.
- The developer has yet to hash out a final agreement to move the project forward with the Delaware River Waterfront Corp., the nonprofit that owns the land.
- A Durst spokesperson tells Axios that a "challenging financial market, high interest rates, and high construction costs" both in Philly and nationally are to blame for stalling the project.
This comes after Durst halted construction on a separate nearby 26-story apartment tower, dubbed Vine Street, because of similar problems.
- That project — between Vine and Callowhill Streets on Christopher Columbus Boulevard — broke ground in the fall 2022, but Durst stopped work shortly after.
What they're saying: "The Durst Organization believes in the significant potential of Penn's Landing. We continue to maintain our sites and examine next steps," the spokesperson said in a statement.
Inside the room: Joe Forkin, president of the nonprofit waterfront corporation, tells Axios that it continues to have "great interest in [the Durst Organization] as the development partner" on the 12-acre site.
- The nonprofit has no intention to look for another developer "unless something drastic happens," Forkin said.
The big picture: The Delaware River waterfront is having a moment.
- The RiverMark project in Northern Liberties from Haverford Development Partners is expected to bring about 600 apartments and retail to a 9-acre site formerly known as Festival Pier.
- The I-95 cap-and-park project connecting Old City to the waterfront is ongoing.
What we're watching: The park spanning I-95 is expected to open in 2028.