New report finds zoning change will turn Fort Washington Office Park into a premier ‘live-work-play’ location, creating jobs, attracting residents and spurring investment

An important zoning change will transform the Fort Washington Office Park into a vibrant “live-work-play’’ location that will attract new businesses, residents and investment, according to a report released today by Avison Young’s Philadelphia office.

Avison Young’s Suburban Philadelphia Market Flash Report said the new zoning ordinance — adopted by the Upper Dublin Township in May — will spur private investment and development in the Fort Washington Office Park. That will have a profound impact on the reimagined area, making it a hub of activity that will bring jobs and increased commercial property values.

“The new zoning is going to enhance the Park’s appeal among apartment renters and businesses ranging from office users to restaurants,” said Patrick Brady,a Principal with Avison Young based in West Conshohocken. “These sought-after amenities will draw more residents and businesses to relocate to this live-work-play neighborhood. Over the next decade, we expect to see a repositioning of lower-quality office buildings to new and improved uses, spanning all types.”

The Greater Fort Washington (GFW) zoning ordinance expands the permitted uses in the former Employment Center District. This will allow for multifamily residential and mixed-use real estate to supplement the existing office, commercial, institutional, light industrial and recreational uses.

Jim Pasquarella, a Senior Vice President with Avison Young’s Capital Markets Group, said the Park stands to gain tremendously from the carefully crafted ordinance.

“The GFW zoning code is brand new, but some of our region’s leading developers have tracked and helped support township officials in crafting and refining some of its finer points,’’ said Pasquarella, who works with private capital investors who own property throughout the Park. “This code was the result of a solid process wherein public officials solicited ample input from experts and varied perspectives.”

At the township’s request, the Delaware Valley Smart Growth Alliance conducted a juried review of the draft zoning ordinance. The Alliance’s panel of real estate, planning and land use professionals normally evaluates proposed real estate projects. Its recommendations were included along with extensive feedback from the public and private sectors. Township officials said the final result is a zoning code designed to stimulate new development and investment while balancing various community interests.

A fiscal impact study projects 2,000 jobs will be added to the Park because of this zoning change, the report said. The study projects commercial property values will increase by more than $40 million – a number Pasquarella said could be conservative.

“I’m excited for what this new zoning code enables,’’ said Pasquarella, who grew up in the township and traveled through the Park daily for decades. “With the promise of a vibrant mix of land uses, this code will be transformative, spurring significant private capital investment that will be rewarded by an improved local economy and increased property values.” 

The report quoted key people involved in the Park. One of them is Glenn Griffin, president of the Fort Washington Business Alliance (FWBA), which works with property owners and tenants within the Park. He said an indication of the Township’s deep commitment to the Park is seen in its new library building.

“The current redevelopment of 520 Virginia Drive into the Upper Dublin Public Library and Community Center will further enhance the live-work-play concept for the Park,‘’ Griffin said, adding that the building will feature a 300-seat amphitheater — a valuable amenity and future rental space for civic groups and local businesses.

“The FWBA believes the new Greater Fort Washington zoning ordinance is a significant step forward in the transformation of this unique asset,” Griffin said.

Few locations in the area have the major highway linkages and regional rail accessibility situated in a highly regarded suburban community as does the Fort Washington Office Park, he added. “The FWBA looks forward to the mixed-use residential developments proposed for Park which will complement the existing office and related uses,’’ Griffin said.

Developers are already making moves to capitalize on the new zoning, the report found. Among them:

• Equus Capital Partners has proposed a mixed-use development at 1125 Virginia Drive, consisting of 200 apartment units, 32 townhomes and 5,000 square feet of retail on the 16-acre site of the former ADP facility.
• Alliance HP just purchased the Solar Center at 500 Virginia Drive in June. Alliance paid $8.1 million for the 368,000 square-foot property on 37 acres. The company plans to redevelop the building to include mixed-use features.

Even before this latest zoning change, the Park’s central location and already improving office market fundamentals spurred strong investment, the report said. High-profile successes in the Park include:

• Kairos Real Estate Partners’ redevelopment of the Apex Fort Washington office park, which transformed the 400,000-square-foot office campus at 600-602 Office Center Drive from 71% occupancy at acquisition in December 2014. They have since stabilized the building at close to 94% occupancy, securing lease agreements with high-quality corporate tenants such as Nutrisystem, Allstate and Lincoln Investment. In February 2017, Kairos sold a majority interest in the Apex office park to Zeke Capital.
• The construction of LifeTime Fitness. Built in 2017, the 115,000-square-foot facility at 375 Commerce Drive serves as a prime example of new mixed-use development as part of the Township’s “live-work-play” environment. The property offers a significant amenity to the business and residential communities, as well as a fiscal stimulus for the Township, generating additional tax revenues of over $600,000 annually.
• Toll Brothers’ pending headquarters move to the Fort Washington Technology Center, a 680,000-square-foot Class A office building at 1140 Virginia Drive. Toll Brothers plans to move 900 employees to the state-of-the-art office space that has been completely renovated.

“The overall success of these early projects helped sparked the Park’s renewal, and the new zoning ordinance will bring even more investment,’’ Pasquarella said. “Its central location on the Pennsylvania Turnpike, combined with $60 million in public sector investments and forward-thinking Upper Dublin Township officials, means the Fort Washington Office Park will be one of the premier live-work-play areas in Greater Philadelphia.”

The full report can be downloaded here.

Avison Young is the world’s fastest-growing commercial real estate services firm. Headquartered in Toronto, Canada, Avison Young is a collaborative, global firm owned and operated by its Principals. Founded in 1978, with legacies dating back more than 200 years, the company comprises approximately 5,000 real estate professionals in 120 offices in 20 countries. The firm’s experts provide value-added, client-centric investment sales, leasing, advisory, management and financing services to clients across the office, retail, industrial, multi-family and hospitality sectors.