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fter nearly two decades since the Philadelphia Housing Authority (PHA) vacated its Chestnut Street headquarters, a long‑anticipated mixed‑income tower will finally break ground early next year. The 14‑story development, located at 2012 Chestnut St., will be built by Alterra Property Group and may also manage the property once it opens. PHA will hold a 99‑year ground lease, making the tower its sole affordable building in Center City.
“It's a multifamily, mixed‑use, mixed‑income building in a high‑opportunity neighborhood,” said PHA president and CEO Kelvin Jeremiah. “Residents will enjoy access to transit, jobs, and a range of amenities right outside their doors.”
The tower will contain 121 units: 40 % market rate and the remainder for households earning less than 80 % of the area median income (about $83,000 for a three‑person family). The mix includes 28 studios, 63 one‑bedrooms, and 30 two‑bedrooms. Additional features are 2,000 sq ft of commercial space, off‑site parking, and a roof deck. JKRP Architects designed the project. Alterra’s senior VP of development, Mark Cartella, said construction should begin in Q1 of next year, noting the long wait and excitement to build vertically in the city.
The delay began when PHA left its headquarters in January 2008, leaving a four‑story shell. Multiple proposals—new HQ, sale to a private developer—were considered. In 2016, a partnership with Alterra was formed for a 200‑unit project, mostly market rate, with a 99‑year lease. Neighborhood opposition and negotiations pushed the plan back until 2020. The pandemic, rising construction costs, and higher interest rates derailed the original financing. PHA then issued bonds backed by future rents from market‑rate units, secured federal housing funds, and received a $2 million boost from Council President Kenyatta Johnson via the H.O.M.E. initiative.
Johnson highlighted the project’s role in keeping downtown vibrant, diverse, and accessible: “Adding high‑quality affordable apartments and retail space ensures an inclusive Center City that reflects Philadelphia’s full spectrum of residents.”
The 95‑year‑old headquarters was demolished in early 2024, but groundbreaking has stalled amid national economic and political uncertainty and a rigorous design‑development process. Cartella noted the extra scrutiny compared to typical projects.
Jeremiah has long warned about Philadelphia’s protracted development timelines, especially under federal guidelines. Yet, as the project nears completion—18 years after the move, 10 years since partnering with Alterra, and two since demolition—he remains optimistic. “This is the first PHA‑built development in Center City,” he said. “It will be a signature project for the city and for affordable housing.”
