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By-Right Development Potential
Pier25 is a by-right development site permitting a broad range of uses, including multifamily, for-sale residential, retail, office, and hotel. A recent highest-and-best-use analysis identifies multifamily residential with supporting commercial uses as the optimal development strategy. The property has also received prior development approvals, further enhancing its entitlement profile.
Compelling Investment Opportunity
Shifting demographic, cultural, and economic trends continue to favor urban, waterfront living, positioning Pier25 as a highly attractive long-term investment. The site offers a rare opportunity to acquire a prime waterfront parcel at today’s market pricing, with significant upside potential as market conditions and demand drivers continue to strengthen. These fundamentals are expected to support sustained growth in residential and mixed-use development along Philadelphia’s Central Waterfront.
Tax Abatement Incentive
One of the most compelling incentives for new construction in the City of Philadelphia is the 10-year real estate tax abatement administered by the Board of Revision of Taxes (BRT). Under this program, property owners are exempt from paying real estate taxes on a substantial portion of the value of new improvements for a ten-year period, significantly enhancing project economics and long-term returns. But these abatements now have a phased-in reduction for properties permitted after January 1, 2022, with commercial/industrial seeing a 10% reduction.
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Right Place, Right Time
Pier25 is exceptionally well positioned to capitalize on current and future waterfront investment. The $225 million I-95 capping project led by the Delaware River Waterfront Corporation (DRWC), combined with continued residential growth—a 5.1% increase in inventory over the past year with 2,837 new residential units delivered—has created a highly favorable environment for development. These catalysts reinforce the waterfront’s trajectory as one of Philadelphia’s most dynamic growth corridors.
Income-Producing Tenant
The property is currently home to Cavanaugh’s, a longstanding and well-established tenant that provides interim income prior to redevelopment. This in-place revenue offers investors the benefit of cash flow while advancing planning and development efforts.
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