SEPTA Board awards contract for lease of five vacant Regional Rail stations

Philly Office Retail was awarded a contract by the Southeastern Pennsylvania Transportation Authority (SEPTA) for the long-term lease of five vacant Regional Rail stations along the Chestnut Hill East and Chestnut Hill West lines.

Under this first-of-its kind agreement, Philly Office Retail will pay SEPTA $1 per year for up to 99 years to lease the following stations: Gravers, Mt. Airy, Carpenter, Tulpehocken and Upsal.

The developer will assume all costs associated with renovating the station buildings — saving SEPTA approximately $150,000 in annual maintenance costs, in addition to $4 million in one-time renovation costs. While plans for the stations are still being developed, they are expected to include retail and residential options.

“This is a win-win situation for SEPTA and the Northwest Philadelphia community,” said SEPTA Interim General Manager Scott A. Sauer. “These five historic buildings have the potential to become community hubs — benefiting SEPTA riders and people in the surrounding neighborhoods. It is also another example of how we continue to do our part to control costs and be good stewards of taxpayer dollars.”

All five stations are listed on either the Philadelphia Register of Historic Places or the National Register of Historic Places.

SEPTA notes Philly Office Retail has a proven track record of renovating historic buildings. The developer currently operates the Richard Allen Lane Station under a traditional lease agreement with a coffee shop on the ground floor and a residential apartment above.

Pending approval by the Federal Transit Administration, work is expected to begin next year. Philly Office Retail will continue to coordinate with SEPTA on planned improvements to the sites.