BETHLEHEM, PA-Locally based Ashley Development has broken ground for One East Broad, a 92,000-sf, five-story mixed-use building. The estimated development cost is $14.5 million, according to John Hrubenak, Ashley's VP of business development.
The building, which is located on one of the last remaining undeveloped parcels in the business district, was initially planned for ground-floor retail, including a drive-through bank branch and a restaurant; offices on the mid floors, and luxury residential condos on the top floor, according to Louis Pektor, who heads Ashley. He characterized the condos as "New York-style," and said each would have a rooftop garden, private wine cellar and reserved parking space on the first floor. The building, designed by Pektor, is neo-classic style, patterned after the Tribeca Grand Hotel in Lower Manhattan.
"Interest in office space is so strong, we're beginning to back off on the condos," Hrubenak tells GlobeSt.com. The rooftop garden remains in the plan, he adds, as does the first-floor bank branch.
All leases aren't final, except for a 10-year office agreement from Judge Jack Panella of the Superior Court. "We also are in negotiations with an engineering firm, and we're working with local healthcare providers," Hrubenak says. "A lot of doctors migrated to the suburbs, and now downtown healthcare is underserved, so a large hospital here is interested in arranging for office space." Rental rate for the office space is between $17 and $18.50 per sf, he says.
As for the retail area, "we have a national coffee/donut shop and a high-end accessory shop in the final stages of negotiations," he reports. The retail space rents for between $20 and $22 per sf. The building is scheduled to reach completion in March 2006.
Ashley has developed Main Street Commons and Liberty Center here and is in the process of acquiring two additional downtown properties. In addition, it has just acquired the former Pomeroy Department Store, a 98,000-sf property in downtown Easton.
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