Developer Iron Stone transfers two Hahnemann properties to new ownership
The real estate investment company has donated the New College Building to Drexel and sold a parking garage to the PPA.
Philadelphia-based Iron Stone Real Estate Partners transferred control of two of their former Hahnemann University Hospital properties in the last two weeks.
The investment group acquired a portfolio of Hahnemann properties in 2021 and began redeveloping them into laboratory and office space.
But in recent weeks Iron Stone disposed of two of these properties.
The company donated the New College Building at 245 N. 15th St. to Drexel University on Dec. 31.
“It’s a charitable donation,” said Jason Friedland, director of operations and investments at Iron Stone. “We felt that that building was best served with Drexel owning it and using it for a long time, long-term, for their research.”
When Iron Stone acquired the New College Building five years ago, Drexel occupied the property’s medical labs and was one of the few remaining tenants in the Hahnemann campus.
Back then the university was considering moving this Center City operation to the suburbs in the short term and to University City in the long term.
“The generous gift will provide the university with flexibility as it continues to consolidate operation of its College of Medicine on its University City campus,” Drexel spokesperson Britt Faulstick said in an email statement. “Plans for the New College Building will be determined in the future.”
On Jan. 6, Iron Stone sold the Broad and Vine Parking Garage at 1416 Wood St. to the Philadelphia Parking Authority for $21.3 million.
The 850-space garage had been exclusively for Hahnemann’s use. Iron Stone renovated the vacant garage after the bankruptcy and hired Metropolis Technologies — the largest parking operator in the United States — to run it.
The acquisition is the first time the Parking Authority has purchased a garage built by someone else, said Rich Lazer, executive director of the Parking Authority.
“Most of our garages, outside of the airport, are Center City-based, so its nice to push out onto North Broad,” Lazer said. “Our garages are lower cost than private garages, so it’ll help us maintain reasonable pricing.”
The authority plans to retain Metropolis Technologies as the operator, Lazer said.
Iron Stone still owns a couple former Hahnemann properties, including the 120,000-square-foot Race Street Laboratories at 1421 Race St. and the 15,000-square-foot building at 231 N. Broad St., which is fully leased by Bayada Home Health Care Inc. with a third of the space and Dynamed Clinical Research with the rest.
Race Street Laboratories was developed to tap into the life sciences and biomedical market, which boomed during the pandemic but has slowed substantially as interest rates spiked. Currently the building has only one tenant, Sbarro Health Research Organization, with 7,500 square feet of space.
Friedland said Iron Stone plans to move its headquarters from University City’s FMC Tower to one of Race Street Lab’s unused floors.
As for the rest of the space, Iron Stone is exploring alternative uses as the life sciences market continues to struggle.
“We’re seeing where the opportunities are in commercial real estate,” Friedland said. “We have a couple things we’re exploring, but we’re not really in a rush.”
New York-based Dwight City Group has purchased most of the remainder of the former Hahnemann buildings.
Their plans for an apartment building were complicated by a bill introduced in December by Councilmember Jeffery Young to ban housing from the former hospital site.
But on Dec. 24, in advance of City Council action on the legislation, the developer received zoning permits for a 361-unit apartment complex at 222-248 N. Broad St. Dwight Group says they are nonetheless in negotiations with Young to secure his support.