The developer of a 250,000-square foot, $100-million life sciences building in University City is in the midst of negotiations with potential tenants.
University Place 3.0, a eight-story building located at 4101 Market St. in University City's development-heavy University City, is situated between 41st Street and 42nd Street.
Floors two to eight have about 30,000 sq. ft. of office and lab space, respectively. The tenant will determine how the space is designed.
Silverstein Properties, Cantor Fitzgerald and University Place Associates are all New York-based firms that invested in the project. Silverstein and Cantor Fitzgerald intend to keep the development for a long time.
Anthony Maher, President of University Place Associates, said that he initially targeted small and young life sciences companies to be part of the project. Maher stated that University Place Associates has now begun negotiating with three major anchors who are larger and more established. The company that takes over the space will likely take up the majority of the floors 2-7 in the building.
We were pursuing small-cap companies that had grown out of incubators in 2021-2022. Maher told a group of University Place 3.0 visitors that it may not have been the best decision to land those companies. It's turned into a sweet spot, especially for large institutions and industry partners who are looking to expand their capacity in order to do science.
The four shafts on each floor, running from the basement up to the roof allow users to connect to mechanical equipment of different types that are not stored on the same level. The shafts that are empty allow for a quick connection to each floor so they can receive essentials like lab gases and compressed air.
The ground floor will have about 30,000 square foot of retail space. Tenants include Fulton Bank, a dessert shop, a fast-casual dining restaurant and an entertainment area. University Place Associates refused to reveal the names of tenants.
Maher stated that tenant interest has been so great, University Place Associates was able to choose the ones who best fit their vision.
Maher said, 'It is an envious situation to be in for owners to say that we like your rent at market rate but don't believe it's the best fit for the community and neighborhood.' We never imagined we'd be having those conversations so early.
University Place 3.0 is located just south of University Place 2. This office building, which measures 98,000 square feet and was sold by University Place Associates to Zurich Insurance Group back in 2016, sits on the same site. There is a United States Citizenship and Immigration Services office.
Rite Aid is located on the east side 41st Street, the site for University Place 4.0. This future building will be 450,000 square feet and house the life sciences. Maher stated that the planning phase for the 4.0 Building has begun. Sheward Partnership has completed renderings for the project. University Place 5.0 is being considered as a building next to the other three, bringing the campus up to four buildings with a total of 1 million square foot.
Maher said that the campus could "create a legacy".
University Place 3.0 is LEED and WELL Platinum Certified. University Place Associates see the sustainability of the building as a major attraction for tenants.
The building can save up to 31% on water by using the green roof at the third floor. This is equivalent to about 300,000 gallons of water per month. Smart glass technology is also used in the windows, which tints automatically and doesn't need blinds. It can prevent desks from being overheated by sunlight.
Maher stated that it will be the world's first LEED Platinum and WELL platinum lab building.
Scott Mazo, CEO of University Place Associates, said: "This sustainability element is very serious." We've taken it to the Nth Degree. ... we're very, extremely conscientious and want to make this statement.
University Place Associates, as well as future tenants, benefit from tax incentives because the site is located in a Keystone Opportunity Zone.
Gattuso Development Partners, a Drexel University campus developer, is building a $450-million, 520,000-square foot research and lab facility at 3201 Cuthbert St. Brandywine Realty Trust will build a $307 million, 417,000 square-foot building for life sciences at 3151 Market St. Wexford Science and Technology will develop the uCity Square Campus, which includes a $2.880 million, 400,000 square-foot building.
Mazo founded Neighborhood Restorations, and has spent most of his career developing affordable homes in West Philadelphia by rehabbing abandoned houses. The corner of 41st & Market has become a hub for University City development as it moves west.
Maher stated, 'I'm glad that we are not the end of the line for all innovation.' '[We] are becoming, hopefully the front door.