PIDC, Philadelphia’s public-private economic development corporation, announced that it is under agreement with Ensemble Real Estate Investments for the purchase, renovation, and expansion of a former barracks complex into the Navy Yard’s second hotel, which would complement and enhance the ongoing public and private investments at the Navy Yard.
New development demonstrates the continued momentum for one of Philadelphia’s most concentrated areas of economic growth
Ensemble Real Estate Investments, Long Beach, CA-based developer and owner of the Navy Yard’s first hotel, the successful and award-winning Courtyard by Marriott, will purchase the Receiving Station and Barracks Building, a 3.3 acre parcel bounded by Normandy Place, Constitution Avenue, and 11th and 12th Streets, for $1.5 million. Since its first hotel opened in 2014, the Navy Yard has added over 2,500 employees, 20 companies and developed nearly 1 million square feet of real estate, demonstrating an increased demand for an expansion of a second hotel.
“The development of a second hotel with Ensemble Real Estate Investments is an exciting indicator of success in the revitalization of the Navy Yard,” said Prema Katari Gupta, PIDC’s Senior Vice President, Navy Yard Management, Development, and Operations. “These are some of the most iconic and unique buildings at the Navy Yard, with beautiful architecture and a storied history. We are thrilled that they will be brought back to life through adaptive reuse for guests and locals to enjoy.”
The U-shaped Colonial Revival-style complex contains three adjacent buildings that were built in stages between 1919 and 1942, totaling 155,000 square feet. These historic red brick buildings once served as a barracks for U.S. Marines, and later housed naval administrative support services. These buildings have remained vacant since 2000, when PIDC acquired control of the Navy Yard on behalf of the City of Philadelphia and the Philadelphia Authority for Industrial Development (PAID).
Ensemble plans to renovate and expand the existing buildings to create an approximately 195,000 square foot high-end, full-service hotel with approximately 230 rooms, a restaurant and bar with al fresco dining, a large ballroom, meeting room spaces, and other amenities.
“We are honored to be selected to redevelop the historic barracks building,” said Kam Babaoff, Ensemble’s Managing Partner. “Our vision is to create a space that addresses the needs of the community by providing high-end lodging, dining, and event space, at the same time carefully respecting the history of the building.”
Construction is anticipated to commence in late 2019, with expected completion and opening of the hotel in 2022. This adaptive reuse project will seek the federal historic tax rehabilitation credit and was designed to ensure that the building’s historically designated elements remain protected.
The first hotel at the Navy Yard, the Ensemble-owned Courtyard by Marriott opened in 2014 as a five-story, LEED certified hotel with 172 rooms, meeting space, a lounge with food and beverage options, and fitness center. Due to high demand, in 2017 an $8 million upgrade added 40 additional guest rooms, putting the hotel’s total key count at 212.
Today, the Navy Yard is considered the most successful redevelopment of a former military facility in the country. A thriving riverfront neighborhood, the Navy Yard currently features more than 7.5 million square feet of buildings housing 13,000 employees working at 150 companies, ranging from headquarters for Urban Outfitters and GSK to technology startups, manufacturers, corporate R&D, and a graduate engineering and research satellite for Penn State University. Home to historic structures and new high-performance and LEED-certified development, the Navy Yard offers diverse, flexible building choices with varying heights, vintages, and floorplates, all powered by a nationally-recognized micro grid and oriented around miles of riverfront access and world-class open space. Future growth will support up to 10 million square feet of commercial and residential development. It continues to serve as one of the region’s most important centers of employment as it attracts new businesses and investment to Philadelphia.
For Media Inquiries Contact:
Director of Navy Yard Marketing & Communications
(215) 218-2854 | jtran@PIDCphila.com
Ensemble Real Estate Investments
Director of Marketing
(602) 385-2856 | email@example.com
About Ensemble Real Estate Investments
A proven, trusted company with 30+ years of expertise, Ensemble is a full-service real estate solutions and investments provider that creates exceptional real estate in the hospitality, healthcare, commercial and urban multifamily/mixed-use sectors.
Ensemble has a long-standing history of maximizing investment returns through the development, renovation, and repositioning of hotel assets, while adding value to their respective communities. Ensemble specializes in assembling customized teams to realize its vision for each specific market. With its combined operational expertise, development acumen, and asset management capabilities, Ensemble has fostered strategic and fruitful partnerships with boutique hotel operators as well as with global brands including Hilton, Marriott and Hyatt. For more information on Ensemble, visit www.ensemble.net.