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Development permit signals progress at site near Amtrak’s North Philly station

Improved station security, landscaping and lighting are also planned as part of an initial $49 million development phase.

Artist's rendering of the proposed North Station District development, as seen from corner of Broad Street and Indiana Avenue.
Artist's rendering of the proposed North Station District development, as seen from corner of Broad Street and Indiana Avenue.Read moreSpagnolo Gisness & Associates

The developers seeking to revitalize the blighted area around Amtrak’s North Philadelphia station into a new complex of homes, research labs, and offices have been issued a zoning permit to build a residential mid-rise, the first solid sign of progress in the so-called North Station District plan since the land acquisition.

North Station District LLC, as the consortium of real estate investors is known, was granted permission last Friday to build a seven-story building with 135 dwelling units and ground-floor commercial space, according to Department of Licenses and Inspections records.

Michael Bailkin, a principal with consortium member Arete Group, said improved station security, landscaping, and lighting were also planned as part of an initial $49 million phase of what could eventually be up to 1.7 million square feet of development on what are now vacant warehouse properties and empty lots.

“By itself, it’s not a critical mass, but it’s really the first piece of the puzzle in terms of getting actual development there,” he said.

The project’s New York-based backers, which include HFZ Capital Group, Arete, and Merchant Equity Group, acquired the four-acre train station parking lot that makes up most of the project site for $2.1 million in mid-2016 from Amtrak and SEPTA. Synterra Ltd. of Philadelphia later joined as a local partner.

Bailkin said the group hopes to begin construction, which is being aided with a $4 million grant from the state’s Redevelopment Assistance Capital Program, in late April or early May.

The developers aim to use local residents and minority- and women-owned businesses for up to 40 percent of its construction crews and operational staff post-completion, he said.