Philadelphia Redevelopment Authority
Philadelphia Industrial Development Corporation
Urban Retail Mall Lease Negotiation – Philadelphia, PA
The City of Philadelphia was a pioneer in developing a downtown shopping mall, The Gallery at Market Street East, in a public/private partnership with a developer in the 1970’s and 80’s. The mall sits on multiple transit connections and represents one of the early TOD projects in urban locations. The project involves a complex lease arrangement with the current owner that required restructuring in order to allow the developer to renovate and modernize the mall. The original public private ownership and financing structure did not allow the developer to refinance and improve the property given the current economic and financing climate, requiring the City and the Redevelopment Authority to renegotiate the terms of the original transaction. RESGroup was hired to assist in analyzing alternatives, testing the financial impact of various negotiating strategies on the client and assisting in the negotiations on behalf of the City and the Redevelopment Authority.