Here’s what is (probably) coming next for the Wanamaker building
The former Wanamaker building is part of New York-based TF Cornerstone's ambitious plans for office-to-residential conversions across the country.
The future of the Wanamaker building will be decided from New York City.
The iconic Philadelphia building will most likely — after negotiations are complete — fully belong to TF Cornerstone (TFC), a real estate company with deep roots in Manhattan.
The company has owned the 435,000-square-foot portion of the building that contains Macy’s since 2019 and purchased the debt for the struggling 1,401,000-square-foot office portion of the structure last year. It is currently in negotiations to purchase the whole building with Philadelphia-based Rubenstein Partners and has been consulting with city officials about the plans.
“When Macy’s closes in the spring, TFC plans to begin the transformation of the 114-year-old landmark from retail and predominantly vacant office space into a mixed-use anchor for Center City, with new entertainment and fitness outlets, shopping, office, and loft apartments all under one roof,” the company said in an unsigned statement.
While it is far too early for TF Cornerstone to share specific plans, the company has described a rough outline with city officials that could include three or four floors of offices above the building’s retail space.
The rest of the upper floors would be converted to apartment uses, while the space now occupied by Macy’s would be divided to allow multiple smaller format stores. The company has discussed the idea of having the iconic Wanamaker Grand Court Organ, the largest functioning instrument of its kind in the world, play not just on holidays but at a certain time every day.
“It’s very capital intensive and very complicated to break that space up, but that ultimately is what’s going to be done,” said Douglas J. Green, principal of MSC, a retail broker. “There’s really no demand for a single tenant to take every last square foot that Macy’s occupied.”
At a news conference in City Hall Thursday evening, commerce director Alba Martinez said that she had spoken with Jake Elghanayan, one of TF Cornerstone’s chiefs, and that he assured her that they would respect the historic legacy of the building.
“The Wanamaker building is one of Philadelphia’s crown jewels, an architectural and cultural landmark that holds enormous potential for the future,” Martinez said. “We envision a mix of possible uses, retail, dining, residential, cultural attractions and more.”
TF Cornerstone has undertaken multiple conversions of historic buildings in New York into apartment buildings, including the former FBI headquarters on East 69th Street, which is now a 313-unit building, and a former federal archives building that has become 479 residential lofts.
Last year, the company announced a $1 billion collaboration with Dune Real Estate Partners aimed at converting struggling office structures into residential uses in Washington, D.C., Boston, Philadelphia, and Los Angeles. Their plans for the Wanamaker Building are an early entry in that effort.
“By focusing on the adaptive reuse of historic structures, TFC contributes to urban revitalization and sustainable development,” the company said in a statement.
This is a developing story.