You are on page 1of 27



Executive Summary 3
Financial Analysis 5
Rental Market Survey 7
Property Details 9
Features & Amenities 13
Property Photographs 14
Chinatown 17
Philadelphia Region 21

The following disclaimer applies to the attached Offering Memorandum (“Memorandum”) and you are, therefore, advised to read this Disclaimer carefully before
reading, accessing or making any other use of the Offering Memorandum or other information supplied in connection with the Property. The Memorandum shall not
constitute an offer to sell the Property. A sale of the Property shall only take place upon the execution of an Agreement of Sale that has been signed by Buyer and
Seller and all conditions and contingencies contained in the Agreement of Sale have been satisfied prior to settlement. Neither Rittenhouse Realty Advisors (“RRA”)
nor any other third parties have been authorized to give any information other than what has been provided in the Memorandum. Notwithstanding the foregoing, RRA
does not make any representation as to the completeness or accuracy of the information contained in the Memorandum or the value or performance of the Property
either past, present or future. The information contained in the Memorandum shall not be relied upon as a promise or representation as to any condition, value or
performance of the Property. RRA and its owners, members, shareholders, managers, employees, agents and affiliates expressly disclaim any and all liability for any
and all representations, either express or implied, arising from any statements, warranties, representations or information provided in the Memorandum or from the
omission of any such representations, statements, warranties or information from the Memorandum. It is the sole responsibility of any recipient of the Memorandum
to verify the information contained therein and to conduct the proper due diligence concerning the Property. Qualified prospective purchasers of the Property shall be
afforded an opportunity to conduct inspections of the Property. It is expected that such qualified purchasers shall conduct any and all inspections and evaluations of
the Property deemed necessary by them. RRA and Seller reserve the right, at their sole discretion, to reject any and all expressions of interest concerning the Property
from third parties, including the termination of any ongoing discussions and/or negotiations. The Memorandum is subject to withdraw, cancellation or modification
by RRA or Seller at any time. Seller shall have no legal obligation to any party that has received or reviewed the Memorandum unless and until a written Agreement
of Sale has been fully executed, delivered and approved by Seller and Seller’s counsel; and all contingencies and/or conditions to Seller’s obligation to settle have
been satisfied.

Kenneth Wellar Corey Lonberger Mark Duszak

Tel: 215.454.2879 Tel: 215.454.2878 Tel: 215.454.2884 |

June 24, 2019

Executive Summary
Investment Highlights
• New Construction; Currently in Lease Up

• Real Estate Tax Abatement Starts 2020

• Mix of (30) Studio, (105) One-Bedroom and (15) Two-Bedroom Units

• Amenities: Premium Finishes, Stainless Steel Appliances, In-Unit Washer/Dryer

• Rooftop Sundeck with 360 Degree Views of City

• Residences above New Community Center and Retail Space

• Easy Access to SEPTA Subway, Rail and Bus Routes

• Close to Major Employers in Center City and University City

• Convenient to I-676 (Vine Street Expressway) as well as I-76 and I-95

Terms of Sale
Offered free and clear of debt.
All cash at closing.

Offering Pro Forma Building Apartment

Price CAP Rate Rentable Size Units

$67,000,000 5.3% 110,040± SF 150

Financial Analysis
Unit Mix with Rent Analysis
The Crāne Chinatown
Unit Type Count Percent Unit Total Proposed Rent Total
1001 Vine Street, Philadelphia SF SF Rent PSF Monthly Rent

150 Apartment Units Studio 30 20% 578 17,325 $1,950 $3.38 $58,500
1 BR 1 BA 105 70% 716 75,195 $2,600 $3.63 $273,000
110,040 SF 2 BR 2 BA 15 10% 1,168 17,520 $3,200 $2.74 $48,000
Total/Average 150 100% 734 110,040 $2,530 $3.45 $379,500

Owner 2019-2020 Pro Forma Assumptions

Pro Forma Pro Forma & Comments

Apartment Income
Total Rent $4,554,000 $4,554,000 Total Proposed Rent per Above Rent Schedule ($379,500 x 12 Months)
Less: Loss-to-Lease 0 0 0.0% Estimate
Less: Vacancy (227,700) (227,700) 5% Estimate
Less: Concessions 0 0 0.0% Estimate
Net Rent $4,326,300 $4,326,300

Other Income
Water/Sewer Reimbursement $308,112 $308,112 Per Owner Pro Forma
Misc. Income 68,900 15,000 $100 per Apartment Unit Estimate
Total Other Income $377,012 $323,112

TOTAL INCOME $4,703,312 $4,649,412

Fixed Expenses
Real Estate Taxes (2020 Assessed Value) $80,193 $40,351 2020 Taxable Assessed Value x 2019 Millage Rate ($2,882,600 x .013998)
Electric 198,072 198,072 Per Owner Pro Forma ($1,320/Unit)
Gas 16,506 16,506 Per Owner Pro Forma ($110/Unit)
Water/Sewer 66,024 66,024 Per Owner Pro Forma ($440/Unit)
Insurance 0 52,500 $350 per Apartment Unit Estimate
Condominium Fee 132,650 132,650 Per Owner Pro Forma ($884/Unit)
Trash 0 18,750 $125 per Apartment Unit Estimate
Elevator 0 4,400 $2,200 per Elevator Estimate (2 Elevator Estimate)
Doorman 0 105,120 $12/hour Estimate ($12 x 24 hours x 365 days)
Life Safety 0 7,500 $50 per Apartment Unit Estimate
Business Income & Receipts Tax 0 6,579 .1415% x Total Income per City of Philadelphia
Licenses & Permits 9,350 8,250 $55 per Unit per City of Philadelphia
Total Fixed Expenses $502,795 $656,702 $4,378 per Apartment Unit

Variable Expenses
Management Fee $141,099 $139,482 3% Estimate
Payroll 274,932 150,000 $1,000 per Apartment Unit Estimate
Repairs, Maintenance & Turnover 119,900 75,000 $500 per Apartment Unit Estimate
Landscaping & Snow Removal 0 7,500 $50 per Apartment Unit Estimate
Advertising & Marketing 58,900 15,000 $100 per Apartment Unit Estimate
General & Admin 62,600 15,000 $100 per Apartment Unit Estimate
Total Variable Expenses $657,431 $401,982 $2,680 per Apartment Unit

TOTAL EXPENSES $1,160,226 $1,058,684 $7,058 per Apartment Unit

NET OPERATING INCOME $3,543,086 $3,590,728

Capital Reserves ($37,500) ($37,500) $250 per Apartment Unit Estimate


Real Estate Tax Analysis

2019 Philadelphia Millage Rate 1.3998%

Abatement Year 2020

Address Zoning APN Full 2020 Taxable Taxable Exempt Exempt Full 2020 RE Tax Abatement Time Left on Value Placed
Market Taxable Land Improvement Land Improvement RE Tax Property Savings Starts Abatement on Abatement
Value Value Tax

1001-05 Vine Street CMX-4 885583540 $1,629,600 $0 $0 $0 $1,629,600 $0 $22,811 $0 $22,811 2020 10 $228,111

1007 Vine Street CMX-4 783541300 $1,049,400 $0 $0 $0 $1,049,400 $0 $14,690 $0 $14,690 2020 10 $146,895

314 North 10th Street ICMX 885066060 $203,600 $0 $0 $0 $203,600 $0 $2,850 $0 $2,850 2020 10 $28,500

3 Parcel Total $2,882,600 $0 $0 $0 $2,882,600 $0 $40,351 $0 $40,351 $403,506

Rental Market Survey
Studio One Bedroom Two Bedroom Utilities - Paid by
Property/Address Total Year Occup
Units Built Proposed Average Average Proposed Average Average Proposed BA Average Average Rate Electric Heat Hot C/W &
Rent Unit SF RPSF Rent Unit SF RPSF Rent Unit SF RPSF Water Sewer
The Crane
1001 Vine Street 150 2019 $1,950 578 $3.37 $2,600 716 $3.63 $3,200 2 1,168 $2.74 Lease-Up Tenant Tenant Tenant Owner
Philadelphia, PA

Competitive Rental Properties

Studio One Bedroom Two Bedroom Utilities - Paid by
Property/Address Total Year Occup
Units Built Street Average Rent Street Average Rent Street BA Average Rent Rate Electric Heat Hot C/W &
Rent Unit SF PSF Rent Unit SF PSF Rent Unit SF PSF Water Sewer

315 North 12th Street 163 2014 $1,855 600 $3.09 $1,965 - $2,600 750 - 950 $2.62 - $2.74 $2,815 2 1,100 $2.56 97% Tenant Tenant Tenant Tenant
Philadelphia, PA

The Girard
1199 Ludlow Street 240 2017 N/A $2,150 - $2,825 579 - 836 $3.38 - $3.71 $3,335 2 1,098 $3.04 Lease-Up Tenant Tenant Tenant Tenant
Philadelphia, PA

The Collins
1125 Sansom Street 112 2016 N/A $2,277 - $2,954 706 - 920 $3.21 - $3.23 $3,130 - $4,111 2 1,109 - 1,277 $2.82- $3.22 94% Tenant Tenant Tenant Owner
Philadelphia, PA

1213 Walnut
1213 Walnut Street 322 2018 $1,930 - $2,203 433 - 501 $4.40 - $4.45 $2,260 - $3,607 557 - 694 $4.06 - $5.20 $2,776 - $4,757 2 828 - 894 $3.35 - $5.32 93% Tenant Tenant Tenant Tenant
Philadelphia, PA

The Ludlow
1101 Ludlow Street 322 2018 $1,920 - $1,990 519 - 522 $3.70 - $3.81 $2,015 - $2,510 571 - 691 $3.53 - $3.63 $3,455 - $3,500 2 929 $3.72 - $3.77 Lease-Up Tenant Tenant Tenant Owner
Philadelphia, PA

218 Arch Street

218 Arch Street 144 2018 $1,510 - $1,650 352 - 366 $4.29 - $4.51 $1,725 - $2,805 575 - 875 $3.00 - $3.21 $2,995 - $3,050 2 738 - 998 $3.06 - $4.06 Lease-Up Tenant Tenant Tenant Tenant
Philadelphia, PA

The Bridge on Race

205 Race Street 146 2017 $1,750 514 $3.40 $2,210 - $2,450 679 - 723 $3.25 - $3.39 $2,805 - $3,300 2 864 - 1,001 $3.20 - $3.25 93% Tenant Tenant Tenant Tenant
Philadelphia, PA

The View at Old City

401 Race Street 216 2019 $1,537 - $2,042 441 - 645 $3.17 - $3.49 $1,730 - $2,540 573 - 808 $3.02 - $3.14 $2,764 - $3,974 2 946 - 1,257 $2.92 - $3.16 Lease-Up Tenant Tenant Tenant Owner
Philadelphia, PA

The Alexander
300 Alexander Court 277 2018 $1,733 - $3,631 605 $2.86 - $6.00 $2,294 - $3,657 767 - 899 $2.99 - $4.07 $3,125 - $6,226 2 1,173 - 1,326 $2.66 - $4.70 92% Tenant Tenant Tenant Owner
Philadelphia, PA
Rental Market Survey


The Crane: 1001 Vine Street

1 Goldtex: 315 North 12th Street

2 The Girard: 1199 Ludlow Street
3 The Collins: 1125 Sansom Street
4 1213 Walnut: 1213 Walnut Street
5 The Ludlow: 1101 Ludlow Street
6 218 Arch Street
7 The Bridge: 205 Race Street
8 The View at Old City: 401 Race Street
9 The Alexander: 300 Alexander Court

Property Details


Address 1001 Vine Street; Philadelphia, Pennsylvania 19107
Neighborhood Chinatown
School District School District of Philadelphia
Zoning CMX-4; ICMX
885583540: 1001-05 Vine Street
APN 783541300: 1007 Vine Street
885066060: 314 North 10th Street
Lot Size 19,400± Square Foot
Year Built / Renovated 2018-19
No. of Buildings 1
Building Gross Area TBD
No. of Stories TBD
No. of Apartment Units 150 Units

Not drawn to scale. For reference purposes only.

Floor Plan: First & Second Floors
Floor Plan: Third & Fourth Floors
Floor Plan: Upper Floors
Property Features & Amenities

• Newly-Constructed Multi-Family Property in Chinatown Section of Philadelphia

• Residential Units on Floors 6 through 20 of Building

• Mix of (30) Studio, (105) One-Bedroom and (15) Two-Bedroom Units

• Spacious Residential Units with Floor-to-Ceiling Windows

• Kitchens feature Stainless Steel Appliances, Granite Countertops and Tile Backsplashes

• In-Unit Washer and Dryer

• State-of-the-Art Fitness Center

• Rooftop Sundeck with 360 Degree Views of the City

• Award Winning Bilingual Childcare Center

• Access to New Community Center on Lower Floors

• Walking Distance of Vine Street Park and Franklin Square

• Convenient to Interstate-676 (Vine Street Expressway) and Interstate-95

• Surrounded by an Array of Restaurants, Shops and Cafes in Chinatown

• Close Proximity to Race Street Pier and Waterfront as well as Northern Liberties/Fishtown

• Within Blocks of Some of the City’s Major Employers including Jefferson University Hospital, Penn Medicine,
Comcast, and Vanguard

• Easy Access to SEPTA Ridge Spur Line and Broad Street Subway as well as SEPTA Regional Rail (Jefferson
Station) and Numerous Bus Routes

Unit / Interior Photographs

Unit / Interior Photographs

Unit / Interior Photographs

The Greater Philadelphia Region is an area rich in history and prosperity. As
the sixth largest metropolitan center in the United States, the region offers an
extensive array of cultural, educational, historical and recreational facilities.
From Philadelphia’s position in the center of the Eastern Megalopolis to its di-
verse economy, the Greater Philadelphia region is poised for continued growth
and prosperity.
Philadelphia’s Chinatown neighborhood stretch-
es from Vine Street on the north to Arch Street on
the south, and from North Franklin Street and
North 7th Street on the east to North Broad Street
on the west. Unlike some other traditional China-
towns, the Philadelphia Chinatown continues to
grow in size and ethnic Chinese population, as
Philadelphia itself is experiencing significant
Chinese immigration from New York City, 95
miles to the north, and from China, the top coun-
try of birth by a significant margin sending immi-
grants to Philadelphia.

Vine Street is the northern boundary of Chinatown. Restaurants and shops, with apartment units located above, are in the buildings south
of Vine street, within Chinatown. Factories and other industrial properties are located on the other side of Vine Street. Filbert Street serves
as the southern border. Chinatown includes a core area that has seven city blocks.

Developments in the 20th century formed the current boundaries of the Philadelphia Chinatown. In the 1920s, ramps leading to the Ben
Franklin Bridge were constructed at Chinatown's northern edge. At another point, the city condemned an area east of what is now China-
town so that the new headquarters of the Philadelphia Police Department, Independence Mall, and a hospital could be constructed. At one
point the city proposed building an eight-lane highway that would divide the Philadelphia Chinatown into two parts and eliminate the
Holy Redeemer Church and School. The church and school remained, while the Vine Street Expressway, smaller than its original pro-
posed size, was built.

The construction of the Market East Station in the 1970s and 1980s established Filbert
Street as Chinatown's southern border. As a result of the construction of the Pennsylvania
Convention Center, which opened in 1993, the Chinatown buildings on Arch Street, up to
the intersection of 13th Street, were demolished. In addition, a federal prison, the Federal
Detention Center, Philadelphia, opened in the area.

The Chinatown neighborhood benefits from its access to public transportation. The
Chinatown station on SEPTA's Broad-Ridge Spur is located at 8th and Vine Streets, and
Market East Station is only a block from the Chinatown Friendship Gate. SEPTA also
provide local bus transportation to the area.

The Chinatown Friendship Gate at 10th and Arch Street is a Chinatown is a bustling showcase of Chinese, Thai, Vietnamese
symbol of cultural exchange and friendship between Philadelphia and Korean cultures and cuisines. Beyond the gilt-painted
and its Chinese sister city of Tianjin. The Gate is the first authentic Friendship Gate are streets packed with restaurants and bars, in-
Chinese Gate built in America by artisans from China. Weighing cluding the famous speakeasy-style Hop Sing Laundromat. Eclec-
about 88 tons and standing 40 feet high, the Gate has bright colors tic shops sell items that range from hand-stretched noodles to col-
and elaborate designs that reflect early Chinese imperial construc- orful trinkets. The annual Chinese New Year celebrations feature
tion. It has themes of mythical creatures and graphic patterns typi- lion dances and fireworks displays.
cal of the Ming and Qing Dynasties. A procession of mythical
animals is featured on tiles. The phoenix is meant to ensure good Chinatown features a large number of restaurants featuring East
luck. The dragon, said to have the magical power of retaining wa- Asian cuisines. 10th Street and Race Street host nearly a dozen
ter in its mouth, is intended to protect the structure of the Gate and different Hong Kong-style bakery cafes. Furthermore, there are
the community from fire. restaurants serving Cantonese, Fujianese, Northern, Sichuan, and
Taiwanese cuisine. Numerous restaurants in Philadelphia's China-
The four traditional Chinese characters on both sides of the Gate town feature other Asian cuisines, such as Burmese, Japanese,
are, "費城華埠" (Fèichéng huá bù), which means Philadelphia Korean and Vietnamese.
Chinatown. The Gate was repainted in 2008 with the help of Tian-
jin artisans using ancient techniques and traditional materials and
funded by the City of Philadelphia and the help of Philadelphia
Chinatown Development Corporation. The Gate was rededicated
on November 19, 2008.


The Greater Philadelphia Region
The strength and desirability of Greater Philadelphia is characterized by its economic diversity and population density. Its location,
high concentration of educational, medical and government facilities, and a strong transportation network underscore these
strengths. Philadelphia boasts strong economic fundamentals. According to the US Bureau of Economic Analysis, the Gross Metropoli-
tan Product for the Philadelphia Region is the eighth largest in the U.S. ($405 billion).

The nation’s sixth largest metropolitan area and fifth largest city, Greater Philadelphia is situated in the heart of the Northeast Corridor
and is the keystone of major north-south, east-west highway and rail networks. MSA Population is estimated to be approximately 6.4 mil-
lion as of the fourth quarter 2015. The City of Philadelphia is the largest city in the Commonwealth of Pennsylvania and the second larg-
est city on the East Coast. As of 2010-2014, the total Philadelphia population was at 1,546,920, which had grown 2% since 2000. The
median household income within Philadelphia was at $37,460 and had grown by 22% since 2000. Further, the median house value
was at $143,200 and had grown by 140% since 2000. The house value growth rate is much higher than the state average rate of 70% and
is much higher than the national average rate of 47%.

The Greater Philadelphia market area spans nineteen counties in Southeastern Pennsylvania, Southern New Jersey and Northern Dela-
ware. Within the Delaware Valley, the Pennsylvania metropolitan division consists of five counties in Pennsylvania and has a population
of 4,008,994. The city is the seat of its own county. The adjacent counties are Montgomery to the north; Bucks to the northeast; Burling-
ton County, New Jersey, to the east; Camden County, New Jersey, to the southeast; Gloucester County, New Jersey, to the south; and
Delaware County to the west.

Located at the confluence of the Delaware and Schuylkill Rivers, Philadelphia is the only consolidated city-county in Pennsylvania. Its
neighborhoods are divided into large sections - North, Northeast, Northwest, West, South and Southwest Philadelphia - all of which sur-
round Center City. Each of these large areas contains numerous neighborhoods, some of whose boundaries derive from the boroughs,
townships, and other communities that made up Philadelphia County before their absorption into the city. For much of Philadelphia's his-
tory, the typical home has been the row house. A variety of row houses are found throughout the city, from Victorian-style homes in
North Philadelphia to twin row houses in West Philadelphia.


6.4 million US Cities
GROSS METRO 7th of Top
$405 billion


3 million US Cities
PERSONAL 5th of Top
$337 billion

Greater Philadelphia Region as The Economic Center

As the center of economic activity in Pennsylvania, the Phila- The city is home to the Philadelphia Stock Exchange and sev-
delphia area had a total gross metropolitan product of $347 bil- eral Fortune 500 companies, including cable television and
lion in 2010, the 7th largest metropolitan economy in the United internet provider Comcast, insurance companies Colonial Penn,
States (Bureau of Economic Analysis). With a gross domestic CIGNA and Lincoln Financial Group, energy company Sunoco,
product of $388 billion, Philadelphia ranks 9th among world food services company Aramark and Crown Holdings Incorpo-
cities and 4th in the nation. The city is also the nation's 4th larg- rated, chemical makers Rohm and Haas Company and FMC
est consumer media market, as ranked by the Nielsen Media Corporation, pharmaceutical companies Wyeth and Glax-
Research. Greater Philadelphia has one of the most diverse oSmithKline, Boeing Rotorcraft Systems, and automotive parts
economies in the nation, and is known for its welcoming busi- retailer Pep Boys. Further, the region is home to the headquarters
ness community with strong international connections. The of more than 150 national and international companies. Long-
region has a total land area of 4,507 square miles covering 11 established corporations, including E.I. du Pont de Nemours,
counties in three states. In addition to its prime location in the Dow Chemical, Campbell Soup, NRG Energy, Unisys, SunGard
center of the country’s wealthiest population in the Northeast, Data Systems, SAP, IKON Office Solutions, Verizon, ACE
Greater Philadelphia is also conveniently positioned just a short USA, Shire Pharmaceuticals, Merck and Aetna/US Healthcare,
train ride away from the financial markets in New York and the Inc. have made a significant contribution to the broad economic
political and regulatory center in Washington, D.C . base that provide a flourishing regional economy and positive
business climate.
Philadelphia's economic sectors include information technology,
manufacturing, oil refining, food processing, health care and The federal government has several facilities in Philadelphia.
biotechnology, tourism and financial services. Today, Philadel- The East Coast operations of the United States Mint are based
phia has shifted to an information technology and service-based near the historic district, and the Federal Reserve Bank's Phila-
economy with financial activities accounting for the largest sec- delphia division is based there as well. Philadelphia is also home
tor of the metro economy. With 2.7 million payroll jobs, the to the U.S. District Court for the Eastern District of Pennsylvania
Philadelphia Metro area already ranks as the 8th largest job and the U.S. Court of Appeals for the Third Circuit. Further, the
market in the nation. Center City is home to the largest cluster City is home to the law schools of the University of Pennsylva-
of high-paying jobs in the region (293,700 jobs representing nia, Drexel University, Temple University, Rutgers University
more than 43% of all jobs in Philadelphia), with 40% requiring a (Camden), Villanova University, and Widener University. The
bachelor’s or postgraduate degree. The area’s fast-growing bio- headquarters of the American Law Institute is located in the city
medical and pharmaceutical industries have brought 14 major as well as the Third Circuit Court of Appeals. Ten of the 100
pharmaceutical firms and nearly 100 biotech firms to the area. largest law firms in the US have their headquarters or largest
Eight of the world’s largest pharmaceutical companies are within office in Philadelphia.
a 50-mile radius of Philadelphia, including AstraZeneca, Bristol-
Myers Squibb, GlaxoSmithKline and Merck.

“Eds and Meds” Lead the Way
Healthcare and educational institutions are the main drivers of the Phila-
delphia economy, providing 243,000 citywide jobs (36.5% of all employment).
In University City, “eds and meds” account for 81.3% of wage and salary jobs.
In Greater Center City, where the office sector accounts for 31% of jobs, these
institutions provide 60,600 positions, accounting for 21% of all wage and salary

Greater Philadelphia contains one of the nation’s largest concentrations of

health care resources in the nation with 120 hospitals, 200 pharmaceutical
and biotech firms and 135 medical manufacturers. In addition, the area is one of
the largest health education and research centers in the United States. It is an
important center for medicine, a distinction that it has held since the colonial
period. The city is home to the first hospital in the British North American colo-
nies, Pennsylvania Hospital, and the first medical school in what is now the
United States, at the University of Pennsylvania (Penn). The city's largest pri-
vate employer, Penn, also runs a large teaching hospital and extensive medical
system. There are also major hospitals affiliated with Temple University School
of Medicine, Drexel University College of Medicine, Thomas Jefferson Univer-
sity Hospital, and Philadelphia College of Osteopathic Medicine. Philadelphia
also has three distinguished children's hospitals: the Children's Hospital of Phil-
adelphia, the nation's first pediatric hospital (located adjacent to the Hospital of
the University of Pennsylvania), St. Christopher's Hospital, and the Shriners'
Hospital. In the city's northern section are Albert Einstein Medical Center, and
in the northeast section, Fox Chase Cancer Center. The city is also home to the
nation's first school of pharmacy, the Philadelphia College of Pharmacy, now
called the University of the Sciences in Philadelphia.

Today, health care is one of the largest sectors of employment in the city.
One in five doctors practicing in the nation were trained at a Philadelphia area
school, and over 100,000 have chosen to practice in or around the region. Fur-
ther, with Philadelphia's importance as a medical research center, the region
supports the pharmaceutical industry. GlaxoSmithKline, AstraZeneca, Wyeth,
Merck, GE Healthcare, Johnson and Johnson and Siemens Medical Solutions
are just some of the large pharmaceutical companies with operations in the re-
gion. Another positive trend for the future of Philadelphia is the emergence of
the biotech sector. In fact, “early stage” biotech companies and researchers
received a huge boost when Pennsylvania recently announced that it would
allocate $100 million from its tobacco settlement funds to create three biotech-
nology “greenhouses,” including one in Philadelphia, to nurture and promote
biotech startup companies.

“Eds and Meds” Lead the Way
Philadelphia’s educational heritage began with the founding of the University of Pennsylvania, a world renowned Ivy League school.
Today, Greater Philadelphia area is home to 101 degree-granting institutions, and ranks as one of the nation’s leading centers for high-
er education with a total of 91,844 degrees and certificates awarded annually. Further, more than 20 universities in the region sponsor
technology and science incubators, allowing new science and IT businesses access to university talent and equipment. Technology trans-
fer programs, incubators and science technology centers support the development and commercialization of new products and treat-
ments, providing state-of-the-art lab and manufacturing facilities, access to capital and other support for entrepreneurs. This provides a
steady pipeline of highly-educated people who enter the workforce or launch startup companies in the Greater Philadelphia region.

Greater Philadelphia has the second-highest concentration of colleges and universities on the East Coast, producing over 66,000 new
graduates every year. Notable area schools include: Temple University, the University of Pennsylvania, Drexel University, Swarthmore
College, Haverford College, Bryn Mawr College, Villanova University, St. Joseph’s University, LaSalle University, Princeton Universi-
ty, Rutgers University, Widener University, the University of Delaware and Philadelphia University. Many of these schools received top
rankings in the U.S. News and World Report annual survey. Business Week recently ranked the University of Pennsylvania’s Wharton
School of Business the number four business school in the country. Philadelphia also boasts six medical schools and 26 teaching hospi-
tals. Area medical schools include Temple University, the University of Pennsylvania, Jefferson, Hahnemann, Philadelphia College of
Osteopathic Medicine and the Medical College of Pennsylvania.

 More than 300,000 students are enrolled in Philadelphia area colleges, and of that number 130,000 students
are studying in the city, many of them at the major research universities: Drexel, Temple, and the University
of Pennsylvania.

 A recent survey conducted by the Knight Foundation and Gallup indicated that over the last decade, the num-
ber of non-native graduates who stay in Philadelphia after graduation has increased from 23% to nearly 50%.

Arts & Culture in Philadelphia
Philadelphia is the cultural center of the Delaware Valley and the home to
many national historical sites that relate to the founding of the United States.
Independence National Historical Park is the center of these historical land-
marks. Independence Hall, where the Declaration of Independence was
signed, and the Liberty Bell are the city's most famous attractions attracting
over 3 million visitors. Other historic sites include homes for Edgar Allan
Poe, Betsy Ross, and Thaddeus Kosciuszko, early government buildings like
the First and Second Banks of the United States, Fort Mifflin, and the Gloria
Dei (Old Swedes') Church. Philadelphia's major science museums include the
Franklin Institute, which contains the Benjamin Franklin National Memorial;
the Academy of Natural Sciences; and the University of Pennsylvania Muse-
um of Archaeology and Anthropology. History museums include the National
Constitution Center, the National Museum of American Jewish History, the
African American Museum in Philadelphia, the Historical Society of Pennsyl-
vania, and Eastern State Penitentiary. Since the 1700’s, Philadelphia has been
a center of excellence in the visual and performing arts. The Philadelphia
Orchestra and the Philadelphia Museum of Art (third largest in the United
States) are recognized as world-class institutions. The Impressionist collec-
tion at the Art Museum combined with the Barnes Foundation form the larg-
est collection of impressionist art outside Europe. The Rodin Museum has the
largest collection of this sculptor’s work outside Paris.

Named the Country’s First World Heritage City Putting it On Par with Jerusalem, Cairo, Paris, and Other Cities
After being granted the status of an Observer Member of the Organization of World Heritage Cities in 2013, Philadelphia has become the
first World Heritage City in the United States in 2015, formally receiving the designation through a vote taken by the XIII World Congress
of the Organization of World Heritage Cities in Arequipa, Peru. The designation, held by about 260 cities, comes as the result of a two-
year campaign and reflects Philadelphia’s evolution into an economic and educational hub and its resilience. Being a World Heritage City
is expected to enhance the City’s international stature, provide a new growth engine to drive tourism and commerce in the region and cre-
ate more opportunities for cultural collaboration and exchanges.

An Economic Engine for Philadelphia

Philadelphia’s arts and cultural sector is a vital regional
asset that supports thousands of jobs, benefits business
and helps grow our economy. When you tally up the
spending by arts and cultural organizations and their
audiences, and how those cultural dollars ripple
through our economy, the impact is profound. Cultural
organizations and audiences contribute $1.4 billion in
direct expenditures. These are the dollars spent by or-
ganizations to stage performances, produce exhibits,
hire accountants, and pay bills and salaries. It is also
spending by audiences at local restaurants, hotels and
retail shops. As those dollars make their way through
the economy, they trigger additional rounds of indirect
spending that add up to another $1.9 billion in econom-
ic impact. This economic activity generates tens of
thousands of jobs and benefits workers and businesses
in every industry and every community. Of the roughly
44,000 full-time equivalent jobs that are supported by
the sector, 7,600 are at cultural organizations and more
than 36,000 are in other industries. These are jobs that provide paychecks not just to cultural staffers, but also to independent artists, de-
signers and musicians; marketers, accountants and consultants; construction workers and contractors; and chefs, bartenders and hotel man-
agers. The jobs that are created by arts and culture return $1.04 billion back to our communities as household income. Arts and culture are
a revenue generator for both the Commonwealth and for local governments throughout the region. Cultural fueled economic activity gen-
erates $95 million in state taxes and $74 million for local municipalities.

Arts, Culture and Economic Prosperity in Greater Philadelphia

Transportation & Infrastructure
The Philadelphia region is two hours from New York and Washington D.C. by car, six hours to the
West Coast, Europe, and Latin America by plane. Philadelphia links travelers through more Amtrak
stations than any other and the region has substantially lower traffic congestion than other major
cities. Philadelphia is at the heart of the Northeast Corridor Rail System. Amtrak’s 30th Street
Station is the third busiest in the system, with more than 3.7 million annual passengers. Hourly train
service to New York City and Washington, D.C. is provided, with total station volume exceeding
550 trains per week. The Acela Express is a high-speed train that provides access between Wash-
ington, D.C. and Boston through Philadelphia’s 30th Street Station. New York City is only a one
hour train ride from 30th Street Station. Conrail provides rail freight service via an extended net-
work through the region. Center City Philadelphia is accessible to all surrounding Pennsylvania
counties by train via the Southeastern Pennsylvania Transportation Authority (SEPTA). With approximately 50 bus and rail lines, SEPTA
is the fourth largest mass transit system in the nation and has one of the most comprehensive bus, subway and commuter rail systems in the
United States. The PATCO high-speed line and New Jersey Transit link the New Jersey suburbs with Center City Philadelphia and the
Pennsylvania suburbs.

Philadelphia International Airport (“PHL”) serves as the principal aviation gateway for the city
and the region. The Airport is located just off Interstate-95 or Interstate-76 and can also be ac-
cessed via high speed rail operating from Amtrak’s 30th Street Station. Direct flights link business-
es to prime domestic and international business centers. Greater Philadelphia is two hours away by
air from 50% of the U.S. population and six hours nonstop to the West Coast, Europe, and Latin
America. Philadelphia International Airport continues to expand, with the recent completion of a
new international terminal, designated “Terminal A West.” This $550 million project includes a
785,000 square foot, 4-level terminal incorporating large public areas for ticketing, baggage claim,
concessions, and federal inspection services as well as 13 new wide-body international gates.

The area is crossed by more than 2,500 miles of interstate, state and local highways and roads that connect it to neighboring states and
the rest of Pennsylvania. Principal highways in Greater Philadelphia include: the Pennsylvania Turnpike, which provides east-west access,
as well as northern connections via Interstate 476 (Northeast Extension) and connections to the New Jersey Turnpike; Interstate 95, a major
north-south freeway that follows the Delaware River and passes by the Philadelphia International Airport; Interstate 476 (the Blue Route)
which connects Interstate 95 with the Pennsylvania Turnpike as it runs north-south, continuing northward to Allentown as the Northeast
Extension of the Pennsylvania Turnpike; Interstate 76 (the Schuylkill Expressway) which links south Philadelphia and southern New Jersey
to the western suburbs through Center City; and Interstate 676 (the Vine Street Expressway) runs through Center City Philadelphia. Fur-
ther, the Ben Franklin, Betsy Ross, Walt Whitman, Commodore Barry and Tacony-Palmyra bridges carry traffic between Pennsylvania and
New Jersey. The New Jersey Turnpike runs from New York City to the Delaware state line, and the Atlantic City Expressway is the main
route for travelers to the New Jersey shore. In addition, Interstate-495 is an alternate express route to Interstate 95 that circles around the
Wilmington area

Kenneth Wellar Corey Lonberger Mark Duszak
Tel: 215.454.2879 Tel: 215.454.2878 Tel: 215.454.2884
Luke DeLuca Robert DiPasquale Seth Douglas
Tel: 646.712.7360 Tel: 215.454.2908 Tel: 215.454.2921
Chris Egan Doug Emrich Emily McBride
Tel: 215.454.2913 Tel: 215.454.2889 Tel: 215.454.2852

Philadelphia Office New York Office Delaware Office

107 South 2nd Street 200 West 57th Street 102 Larch Circle
Fourth Floor Suite 702 Suite 102
Philadelphia, PA 19106 New York, NY 10019 Newport, DE 19804
Tel: 215.454.2852 Tel: 212.765.7900 Tel: 302.994.3907 |

Related Interests