AIA Philadelphia is selling its Arch Street HQ
The real estate costs are a burden for the nonprofit, partly because the event business in the space has not come back from the pandemic.
The headquarters of the Philadelphia chapter of the American Institute of Architects at 1218 Arch St. is being listed for sale this week at $2.9 million.
The Arch Street space is technically owned by the Center for Architecture, a nonprofit created by AIA, which owns the first floor and the basement as a 24,400-square-foot condo unit in the eight-story Smyth Building. It is a half-block to the west of Reading Terminal Market, next to the Fabric Workshop and Museum, and across the street from the Convention Center.
AIA purchased the space in 2008. It is known locally for hosting a wide variety of events for the nonprofit itself, aligned organizations such as the Design Advocacy Group, and conventioneers who used its soaring ceilings and hardwood floors as a stylish after-hours gathering space.
But that business never recovered from the COVID-19 pandemic, and the AIA itself doesn’t use the office space to the extent that it used to.
“This has been a couple years in the making, really since the pandemic,” said Rebecca Johnson, executive director of AIA Philadelphia and Design Philadelphia. “We are struggling to cover our real estate costs, and it’s kind of draining us. It’s not serving us as much as it used to.”
Johnson said event rentals alone used to cover the mortgage before the pandemic, but today only about a third of that business is back.
AIA and Design Philadelphia are hosting more events outside their space. They have a partnership with the School District of Philadelphia that involves sending design professionals to classrooms and recreation centers for workshops.
The group is also receiving more individual donations in support of Design Philadelphia’s educational work.
“Our organization is going gangbusters in terms of engagement and individual donations in a way we haven’t had in a long time,” Johnson said. “It’s a tale of two organizations. The programs last year made money; the real estate lost it.”
Josh Weiss and Jacob Cooper of MSC, a real estate retail services company, are handling the listing.
Philadelphia does not have a lot of commercial condominium units, making the Arch Street location an unusual find.
“It’s got exposed brick and ductwork, high ceilings, the original hardwood floor,” Weiss said. “It’s got a very cool feel to it. Another unusual feature is that in the basement, AT&T and T-Mobile leased space, so there’s rental income from those leases.”
Johnson said AIA plans to rent a new headquarters in Center City, perhaps sharing it with other nonprofits.
Before moving to Arch Street in 2008, AIA’s headquarters was at 17th and Sansom Streets, where the quirky bookstore was a major draw. That concept did not work as well on Arch Street, and the bookstore was closed in 2018. Johnson said there are no plans to bring it back at a new location.