MORE: Prospective owners no strangers to transforming tall structures into elite apartments
ALLENTOWN, Pa. — Mayor Matt Tuerk says he's "incredibly excited" over the pending sale of the 24-story PPL Tower to a development company known for high-end residential uses.
“Whenever we can develop housing in our town and in the Lehigh Valley, it helps mitigate price pressure on the entire region,” Tuerk said.
PPL Corp. announced Friday a tentative $9 million agreement to sell the 2 North Ninth St. Tower Building and office complex to Pennsylvania-based developer D&D Realty Group.
It comes 10 months after a plan was announced to move PPL's corporate headquarters from the landmark skyscraper to Two City Center, on 7th and Hamilton streets.
The tower hit the market in August.
The developer’s proposed plans for the properties, covering about 450,000 square feet in downtown Allentown, include new mixed-use commercial spaces, apartments and other amenities, a release said.
The PPL Tower is the Lehigh Valley's tallest building.
“We were excited to see the plans proposed by D&D Realty Group and the economic opportunities additional mixed-use commercial and residential space would bring to downtown Allentown,” PPL President and Chief Executive Officer Vincent Sorgi said in the release.
“Our company has been proud to call Allentown home for a century, and we plan to remain part of the city’s growth story. The Tower Building remains iconic within our community, and we think these future plans will secure its legacy for decades to come.”
More on D&D Realty
D&D Realty Group, based in the Scranton/Wilkes-Barre area, describes itself as "a multi-faceted real estate company concentrating on development." It's known for projects throughout the state, which include converting properties into mixed-used commercial and residential units with amenities including restaurants, storage and grocery stores.
“As developers, our bread and butter has been transforming historic downtown office buildings into mixed-use developments with a focus on high-end residential and complementary commercial uses,” said Nick Dye, co-managing member of D&D Realty Group.
Some of its more recent projects include the development of high-end apartments for Wilkes University, and an apartment complex known as Riverview West, described as an upscale for-rent condominium complex in downtown Wilkes-Barre.
A 'steady presence' in Allentown
“We look forward to remaining a steady presence in the city, to engaging as we have for years to build a stronger community, and to keeping our corporate headquarters here in Allentown as we create the utilities of the future in Pennsylvania, Kentucky, Virginia and Rhode Island,” Sorgi said of PPL.
Public officials also weighed in on the deal.
Tuerk said the sale “ensures the future of the tower in downtown Allentown lighting up like a beacon for the beating heart of the Lehigh Valley.”
Immediately after PPL announced in June that it would leave the tower, Tuerk floated the idea of turning the Lehigh Valley’s tallest building into housing.
He’s regularly spoken about a “tremendous need” for housing throughout the city and region, which he says are facing a crisis while many offices sit vacant or underused.
The tower is likely to be filled with luxury apartments, as D&D Realty said it sees the building as “the perfect canvas for (its) vision of high-end, downtown living in the Lehigh Valley.”
But Tuerk said any housing created in Allentown is a step in the right direction.
The mayor said he watched Bethlehem’s Martin Tower be demolished in 2018.
“That was something I didn't want to see happen by any means” to the PPL Tower, he said, adding he’s lived within eight blocks of the building since moving to Allentown two decades ago.
“Allentonians are proud of our skyline, and it’s wonderful to know that the tower will continue to light up Center City Allentown, reinforcing downtown as a place where businesses thrive and we celebrate the joy of life,” Tuerk said.
State Rep. Josh Siegel, D-Lehigh, also voiced support for the project, calling it "an opportunity no developer could pass on."
“I’m grateful to PPL’s continued commitment to Downtown Allentown, from keeping their corporate headquarters at the heart of our city, Two City Center, and working to ensure that the iconic PPL Tower continues to be part of our city’s story of revitalization,” Siegel said.
“Post-COVID urban development requires a renewed commitment to the things which make cities special, unique, and desirable: their walkability, their accessible amenities, and their vibrancy. Mixed-use development is critical to ensuring that cities continue to thrive by creating robust availability of housing next to the jobs people desire, the attractions they demand and the resources they need."
He phrased the redevelopment project as "critical to the continued revitalization of the Hamilton Street Corridor."
"Bringing new residents to this crucial corridor will complement ongoing projects such as the Da Vinci Science Center, Archer Music Hall, Moxy Hotel, and the conversion of the PPL Plaza. It shows that Allentown is yet again on the leading edge of urban renewal and a strong model worthy of replication," he said.
