In a surprising move earlier this year, the Philadelphia 76ers and Comcast Spectacor announced their partnership to construct a new arena at the Sports Complex in South Philadelphia. This decision came just a month after City Council had authorized the team’s ambitious $1.3 billion plan for a basketball arena along East Market Street in Center City.
As of now, specifics about the new sports facility, set to open in 2031, remain scarce. However, the partnership has already taken significant steps in the realm of real estate, indicating a commitment to rejuvenate the historically underperforming Market East corridor.
Recently, Comcast and Harris Blitzer Sports & Entertainment, the owner of the 76ers, finalized the acquisition of commercial properties on the south side of East Market Street, between Ninth and 11th streets.
This venture involved the purchase of properties located at 920–938 Market St. and 1000–1024 Market St., totaling $56 million in four transactions that took place on June 27 and 29, according to Sixers spokesperson Jacklin Rhoads.
In a statement, David Adelman, chairman of the joint venture, emphasized their intention to reinvigorate East Market Street, which was once celebrated as America’s premier commercial corridor linking City Hall to Independence Hall.
“We want to be part of the process to re-energize East Market Street,” Adelman stated, expressing enthusiasm for the partnership’s potential impact.
Currently, the companies have outlined no definitive plans for the newly acquired properties. According to Adelman, they are in the early stages of developing future plans, which they will share with the public at an appropriate time.
This news coincides with the city’s preparations to initiate a master plan for East Market Street, a corridor that has struggled for years despite substantial investments. While Rhoads noted that this planning process will not directly influence the redevelopment of their properties, it signals a renewed focus on the area.
The commercial buildings acquired by the partnership are situated across from the Fashion District, which has faced challenges since its opening in 2019. The proposed arena in Center City was expected to supplant a significant portion of the shopping mall, sparking concerns about future foot traffic in the area.
The properties encompass several low-rise structures dating back to the early 20th century, previously housing various national chains, such as H&R Block and Rite Aid, among others. The business landscape includes cash-for-gold stores alongside the former Robinson department store building.
Details have emerged concerning what Harris Blitzer intended to develop at 1000–20 Market St. prior to abandoning the Center City arena project. The plans suggested the creation of 380 residential units, 28,000 square feet of retail space, and 127 parking spaces.
Additionally, the second phase was expected to focus on redeveloping 920–38 Market St., which aimed to introduce 340 residential units, 26,000 square feet of retail space, and 114 parking spots.
It remains to be seen whether Harris Blitzer and Comcast will pursue these development strategies under their current partnership.
Industry experts have voiced strong opinions regarding the future of East Market Street in the absence of the proposed arena. Some argue that without the facility, it opens avenues for a more thoughtful reimagining of the corridor, while others contend that losing the arena as an anchor makes revitalization efforts considerably more difficult.
Mohamed “Mo” Rushdy, president of the Building Industry Association of Philadelphia, expressed skepticism about the prospects of East Market Street without the intended foot traffic and indirect revenue the arena would have generated. He noted that the venue was projected to operate on 150 nights a year, providing a significant boost to local commerce.
“Developers look to develop in areas where there is life and a commercial corridor that is viable. Currently, Market East is not a viable corridor. It needed that boost,” Rushdy remarked, highlighting the challenges ahead.
Conversely, Lauren Gilchrist, executive vice president and market leader for Newmark Greater Philadelphia, believes the absence of an arena may lead to a clearer vision for the area.
“The city has a clean slate to create a master plan that offers developers a clear road map backed by the public policy community, elected officials, and residents,” she explained.
Philadelphia city spokesperson Karen Guss mentioned that there is no definitive timeline established for the launch of the master planning process.
“We expect to share details soon about the process the administration will pursue, along with key external, internal, and community stakeholders, for short- and long-term planning for East Market Street,” Guss stated, emphasizing the city’s commitment to the corridor’s potential revitalization.
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