Chestnut Street hotel project proposes demolishing and then rebuilding a historic building

The corner of Seventh and Chestnut Streets could soon be home to a new high-rise hotel, albeit one that’s trying to look old from street level.

The former home of Stephen Starr’s Jones (700-02 Chestnut) and the shuttered Las Vegas Lounge (704 Chestnut) could soon host a hotel that would rise above and behind the façade of the former restaurant. The old watering hole, meanwhile, would be demolished and replaced by a facsimile of the building as it existed in the late 19th century.

Both of the buildings are listed as contributing to the Chestnut Street East Commercial Historic District, which means they are subject to the strong historic preservation regulations. But Hightop Real Estate and Development argues that 704 Chestnut is too much changed from its original incarnation to be saved. To appease the Historic Commission, the developers propose demolishing it and building a new faux-historic public-facing version.

“Replacing the shabby, three-story remnant of 704 Chestnut with a replica of the five-story façade from c.1896 would substantially aid the public’s ability to appreciate and enjoy the district as it existed during its period of significance,” reads a letter that Hightop submitted to the commission.

The proposal would preserve the old Jones building but erect a six-story addition above it, while seven stories would arise above the reconstituted 704 Chestnut. The developer notes that this would be the first substantial overbuild on the east side of Center City. In the Rittenhouse Square area, several high rise towers have been built atop historic shells.

Hightop is the development partner for the ownership group behind the Chestnut Street properties, and the team decided to move forward with the proposed hotel after the pandemic struck. Starr closed Jones in March 2020, while Las Vegas Lounge sold its last beer in the fall.

This stretch of Chestnut Street, which lies between Jewelers’ Row and East Market Street, has suffered from the dearth of office workers and tourists during the pandemic. Although a new Georgian restaurant recently opened on the north side of the street, many other businesses have closed.

Hightop argues that this corner of Center City would be ideal for a hotel development, given its proximity to Independence Hall, the Liberty Bell, and the other historic attractions of Washington Square and Old City.

“Center City East is ripe for future growth and development,” said David Landskroner, principal of Hightop Real Estate & Development. “The area was hit hard during the pandemic and can use an infusion of density and growth to help bring back and sustain the ground floor retail and commercial businesses.”

The precise number of bedrooms in the hotel is to be determined based on the final design approved by the Historic Commission, but 7,000 square feet of ground-floor commercial space is proposed with the hope of attracting a new restaurant to replace Jones. No new bar is planned for 704 Chestnut.

This will be the project’s third trip to the Historic Commission. Previous efforts that would have demolished 704 Chestnut without replacing it were rejected by the commission.

Preservation advocates have long been skeptical of efforts to build new structures that look historic, especially when a project first calls for the demolition of an existing building.

“We don’t see enough detail in this proposal to reassure us that what they are proposing represents a ‘faithful reconstruction’ as they assert,” said Paul Steinke, head of the Preservation Alliance of Greater Philadelphia. “More likely, it would read as a weak representation of the original building, which no one alive today has ever seen.”

The site has one of the most flexible zoning categories in Philadelphia’s code, so the project can move forward without a trip to the Zoning Board of Adjustment. The Architectural Committee of the Historic Commission will consider the project Tuesday at 9 a.m.