The Southeastern Pennsylvania Transportation Authority (SEPTA) announced it had awarded a contract to Korman Communities, Inc. and Benchmark Real Estate, LLC for the Ambler Station parking lot.
As part of the lease, the developer will pay SEPTA $402,500 per year the first year, with an annual increase of 3 percent over a term of 99 years. The estimated value of the total contract was $236 million.
“SEPTA is committed to strict fiscal discipline and finding innovative ways to generate new revenue streams beyond the farebox,” SEPTA General Manager Scott A. Sauer said. “Building housing and commercial space near our stations will boost ridership and bring economic activity to the communities that SEPTA serves.”
The transportation agency said it is building upon the success of its Transit Oriented Communities (TOC) Program by pursuing joint development opportunities to secure better returns on its real estate assets. Revenue from the ground leases and new ridership revenue is projected to grow to $10 million annually within the next 10 years. The TOC program encourages community development around its services giving more people the opportunity to live near high-quality transit.
Korman and Benchmark’s proposal includes ground floor commercial space; high quality open space and stormwater management; commuter and development parking; and multi-family housing. The developer will be responsible for all aspects of financing, zoning, permitting, design, construction and maintenance of the project.